Shipping & Transport - Germany

In March 2006 new Logistic Standard Terms and Conditions were introduced in Germany, minimizing the liability of a logistic service provider for the faulty performance of value added or additional services. The conditions complement the Freight Forwarders Standard Terms and Conditions and are applicable for logistic services which are not usually provided by freight forwarders with regard to the carriage or storage of goods; the Freight Forwarders Standard Terms and Conditions do not apply to these services.

The new conditions include a definition of 'logistic' services as services that are performed by the transportation service provider and which are commonly connected with a contract of carriage or storage, or a freight forwarding agreement (eg, labelling, product testing and quality checks). Furthermore, regulations were created with regard to the parties' authorization to exchange data electronically, the contractor's responsibility fully to furnish its logistic contract partner with all necessary information, products and material in time to enable it to perform the service according to the instruction received, and other obstacles.

A typical logistic problem is mentioned in Term 13 of the Logistic Standard Terms and Conditions, wherein one party has a special right to cancel the contract if the other party has twice acted in breach of obligations fundamental to the contract, leading to a significant business disruption. However, it is possible to cancel the contract within an adequate period of time only if the opponent failed to comply with a written request to remedy the deficiency.

According to the new regulation, the service provider is liable only for damage caused by default. Liability is limited to typical and foreseeable damage on the one hand and to €20,000 per occurrence on the other. Serial loss is limited at €100,000 regardless of the number of actual defects. The overall liability limit amounts to €500,000 per year. The restrictions and exemptions from liability do not apply, for instance, in the event of gross negligence, or if the service provider or its executive employees acted with intent. A claim is theoretically time barred after one year from the delivery, the day the goods should have been delivered or the acceptance of the product.

However, complex logistic services require an individual logistic contract. The newly published logistic terms and conditions can be used as guidelines when drafting such and might be appropriate for simple logistic services, but they are not precise enough to cover complex outsourcing projects from production to the transportation industry.

For further information on this topic please contact Marco G Remiorz at Dabelstein & Passehl by telephone (+49 40 31 77 970) or by fax (+49 40 31 77 97 77) or by email (m.remiorz@da-pa.com).