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ARTICLE · 08 JULY 2019

Freight forwarders: liabilities, risks and responsibilities

Freight forwarders should ensure that their rights are protected, pursuant to the terms of the carrier's bill of lading.

AustraliaInsurance

In brief - What lessons can be learned from Li Lian International Ltd and Others v Herport Hong Kong Ltd and Anor [2019] KHCFI 826; HCAJ 160/2015?

This decision of the Honourable Ng in the High Court of Hong Kong, Special Administrative Region, is another recent example of the liabilities that freight forwarders, who are Non-Vessel Operating Common Carriers (NVOCCs) face when issuing their own bills of lading and taking on the risks and responsibilities that the actual carrier has.

The claims, which were made by seven plaintiffs, including cargo owners and their insurers against the freight forwarder, arose from the total loss of the container vessel "MOL Comfort" in the Indian Ocean in mid 2013, when the vessel fractured amidship, split into two halves and eventually sank with all the cargo on board.

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