Freight Forwarders and the Freight Rule

    View Author June 2019

    In the recent decision of Globalink Transportation and Logistics Worldwide LLP v DHL Project & Chartering Limited [2019] EWHC 225 (Comm), the Commercial Court refused to extend the long-established rule in English law that a claim for loss of or damage to cargo cannot be used to deduct or set-off the obligation to pay freight (the Freight Rule) to freight forwarding contracts.

    It is important to recall that the Freight Rule is a narrow one. It applies to freight payable for the carriage of goods. Services relating to the carriage of goods, including the procurement of such carriage under freight forward contracts do not attract the freight rule, and the English Courts will not seek to extend the rule without substantial justification.

    This article was first published in the June edition of the Lloyd’s Shipping and Trade Law Journal and is reproduced with the kind permission of the journal’s publisher.