Who is Liable for Goods Damaged in Transit? (2024)

With increasing numbers of goods being ordered online and delivered to individuals via road, there is the opportunity for goods to be damaged whilst in transit.

But if goods are damaged in transit who is liable? What should you do if you are the buyer and you receive damaged goods?

Who is liable for goods damaged in transit?

As a consumer, if you receive damaged goods then the Consumer Rights Act 2015 places responsibility on the retailer.

That is, you must complain to the retailer if your goods are damaged. It is their responsibility to rectify the situation. This is regardless of whether it was the courier or delivery driver who caused the damage.

The Consumer Rights Act 2015 places responsibility with the retailer because, as the buyer this is who you have contracted with.

If you are a haulage company, courier or delivery driver, in most cases the contract that you have in place with the supplier will determine the obligations and assign liability for goods damaged in transit.

For example, breaching the requirements of the contract can see the haulier, courier or delivery driver held liable for the damage caused.

Fleet managers must be aware of what contracts state and supply employees with the sufficient information to do their jobs properly and in accordance with contracts.

What should consumers do if they receive goods damaged in transit?

As a consumer, the first thing to do is to get in touch with the retailer that you purchased the item from. Use their formal complaints process to report the damaged goods.

You should do this as soon as possible, including photos of the damage. This useful guide from Which gives an overview of the process to follow if you receive goods which have been damaged in transit.

If the item was sent via courier from an individual, then you will most likely need to raise the issue with the courier company. They will most likely have cover in place for damage, but this may be limited to a specific value.

As a delivery driver what should you do if you notice a damaged item?

If, as a delivery driver or courier you suspect damage to one of the items you are delivering, the best course of action is likely to be to highlight this to the person you are delivering to.

They can then decide whether to accept the parcel (sign for it as damaged) or to refuse to take the parcel.

What should you do as a fleet manager if you receive a complaint about damaged goods?

As a fleet manager, low levels of customer satisfaction relating to goods arriving damaged can be detrimental to your business. You will therefore need to identify reasons why goods are being damaged. Looking at the pressures your drivers are under with regards to making deliveries, if there are any issues with the way goods you are delivering are being packaged etc.

As to whether you will need to respond and how you may need to respond to the complainants themselves will very much depend on where liability sits with regard to goods damaged in transit.

How can items be damaged in transit and how can you minimise this risk?

There are many reasons why goods may be damaged in transit including:

  • Insufficient packaging
  • Poor handling by delivery driver/courier
  • Packages not loaded into vehicles correctly

The most important way to reduce damage to goods in transit is to ensure that packaging is sufficient and suited to the needs of the item being delivered. Packaging will be the first line of defence in enabling items to withstand the demands of delivery.

For example, fragile items need to be labelled as such and packaged with cushioning material to reduce any chance of impact causing damage. Electrical items will need to be packaged in a way that reduces the likelihood of water damage etc.

Those delivering parcels should have good standards when it comes to loading items on to the delivery vehicle. Whether this be an individual van or a large fleet or haulage vehicles.

And the driver of the vehicle must take some responsibility to ensure the safe arrival of goods – this can range from having good standard of driving, to taking care when unloading items. Equally, not enforcing unrealistic targets on delivery drivers can help minimise the chances of damage as drivers are less likely to take risks or rush.

At Anthony Jones we offer a range of insurance products designed to protect those who work in the fleet and haulage industry. Whether that be owner operators, hauliers or transport and cargo insurance . We can also arrange goods in transit insurance to help you take care of goods on the move. Get in touch with us today for more information.

Who is Liable for Goods Damaged in Transit? (2024)

FAQs

Who is Liable for Goods Damaged in Transit? ›

It can be a frustrating experience for customers to receive damaged packages. In most cases, the shipping carriers are responsible for the damaged contents. Still, the customer often considers you, the seller, responsible for the bad experience.

Who is responsible if the goods are damaged in transit? ›

Carriers are almost always responsible for transit loss or damage. However, consignees have a legal responsibility for keeping damage costs at a minimum and must accept damaged freight that can be reasonably repaired. If the goods are damaged so much that they become almost worthless, you may refuse the delivery.

Who is responsible for items damaged in transit? ›

Basically, most instances of loss or damage in transit are the seller's responsibility to refund the buyer.

Who is responsible for loss in transit? ›

The buyer is responsible if the goods are damaged or lost while in transit. "FOB Destination" means the seller retains the title of the goods and all responsibility during transit until the items reach the buyer.

Who is responsible for goods in transit? ›

Ownership of goods in transit depends on the terms of sale. In the case of FOB destination, the seller is the owner of the goods in transit and is, therefore, liable for the shipment. But under FOB selling point, the buyer is the owner of the in-transit inventory, making them liable for the shipment.

What happens if your package is damaged in transit? ›

In most cases, the shipping carriers are responsible for the damaged contents. Still, the customer often considers you, the seller, responsible for the bad experience. The last thing you should do is test their patience with a complicated refund process.

How to ask for compensation for damaged goods? ›

To resolve the problem I request that you [state the remedy that you request: to replace the product with an acceptable product that is the same or of equal value, repair the item at no cost to you or refund the full purchase price of the product].

Who is responsible if an item arrives damaged? ›

Unless a prior arrangement between the buyer and seller has been agreed upon or some fine print excuses them of damages, the seller is responsible—at least initially—for the damaged product.

Who is responsible for a package in transit? ›

Thus, anything that happens in transit is the responsibility of the seller; they are responsible if the package is lost or damaged during transit, and usually must replace it or give a reimbursem*nt.

Who is responsible for a damaged package from the USPS? ›

Either the sender or the recipient may file a claim for insured mail that is lost, arrived damaged, or was missing contents. The person filing must have the original mailing receipt. Each claim must be filed within a certain time period and include proof of insurance, value, and damage.

Who is liable for goods lost in transit? ›

Whichever party is responsible for the goods at any given time also carries the risk associated with damage or loss. When ownership of the goods is officially transferred from seller to buyer, so is the liability – but this doesn't necessarily occur when the goods are delivered.

Who bears the loss of goods in transit? ›

Responsibility for loss or damage to items when shipped via common or contract carriers is generally the carrier's; however, the amount of the carrier's liability can be limited by the bill of lading.

Who is responsible for freight damage? ›

Every freight shipment is covered by limited liability, meaning the carrier is responsible for loss and damage under the Carmack Amendment. The amount of coverage is a set dollar amount per pound of freight determined by the carrier and based on the commodity.

Who pays for goods damaged in transit? ›

Ownership plays a crucial role in determining responsibility for damaged goods. When ownership shifts between parties, so does the liability. However, when goods are in the possession of a third-party carrier, it's the carrier who assumes responsibility.

Are goods in transit an asset or liability? ›

Goods in transit are considered to be current assets, so you'll need to be sure and list them on your books for accurate accounting. Second, you must “account” for them as part of your inventory for accurate inventory management.

What to do when goods arrive damaged? ›

If your goods are damaged in transit and/or were not in perfect condition when leaving the warehouse, then your supplier is in breach of contract. Before you can take legal action, it is important that you give the other party a reasonable chance to still fulfil the agreements from the contract.

Who is liable for freight damage? ›

Every freight shipment is covered by limited liability, meaning the carrier is responsible for loss and damage under the Carmack Amendment. The amount of coverage is a set dollar amount per pound of freight determined by the carrier and based on the commodity.

Who is responsible for package lost in transit? ›

Shipping Company's Responsibility in Lost Parcels

The shipping company becomes responsible for the loss, especially due to their negligence or mishandling. For resolution, the seller typically initiates the claim process as the shipping company's client.

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