(只有英文版本)



To: Transport Industry Operators

Are Standard Trading Conditions (“STC”) equivalent to the House Bill of Lading (“HB/L”) terms or the House Air Waybill (“HAWB”) terms? We have been frequently asked this question by our forwarder clients.

The STC are one set of contract terms that a forwarder would usually like to adopt when it does business with all of its customers. Since the STC are the set of contract terms to apply to all business transactions of the forwarder, the STC cannot be the contract terms of the HB/L or the HAWB. The HB/L is the contract of carriage by sea between the forwarder as carrier and the shipper / consignee. The HAWB is the contract of carriage by air between the forwarder as carrier and the shipper / consignee. Neither the HB/L terms nor the HAWB terms are the STC of the forwarder. The HB/L and the HAWB have their own contract terms. However, since the STC apply to all the business transactions, that means the STC also apply to the business of the HB/L and the HAWB.

What happens if the contract terms of the HB/L or the HAWB conflict with the STC? In the STC, there should be a clause saying to the effect that if there are any inconsistencies between the terms of the HB/L or the HAWB issued on the one hand and the STC on the other, the terms of the HB/L or the HAWB shall prevail. So this resolves the potential conflicts.

Let us look at some common contract terms in the STC of forwarders.

The customer warrants that all the goods have been properly and sufficiently packed and are fit and suitable for the carriage, storage and any other cargo handling as per the customer’s instructions.

The customer shall indemnify the forwarder against all claims, liability, losses, damage, costs and expenses arising from (i) the forwarder acting in accordance with the customer’s instructions, or (ii) a breach of warranty or obligation on the part of the customer, or (iii) the inaccurate information or the insufficient instructions provided by the customer, or (iv) the mistake or negligence of the customer.

All goods and documents relating thereto shall be subject to a particular and general lien for monies due in respect of such goods, or for any particular or general balance or other monies due from the customer to the forwarder. If any such monies due to the forwarder are not paid within 14 days after notice has been dispatched to the customer, the goods may be sold by public auction or private treaty or may be disposed of at the sole discretion of the forwarder at the expense of the customer, and the proceeds if any shall be applied in satisfaction of such debts, and the customer shall not be relieved from the liability of any outstanding debts merely because the goods have been sold or disposed of. The customer is responsible for payment of all costs and expenses being incurred when the goods are being liened.

The customer shall pay to the forwarder all freight charges immediately when due without deduction on account of any claim, counterclaim or set-off. For any amount unpaid when due, the forwarder shall be entitled to interest from the due date until payment at 2% per month.

If there is any cargo loss, damage, misdelivery or misdirection that arises from the negligence or mistake of the forwarder, its employee, agent or sub-contractor, the forwarder’s liability shall not exceed a total of 2 SDR per kilogram of the gross weight of that part of the goods in respect of which a claim arises. SDR means Special Drawing Rights as defined by the International Monetary Fund.

Any claim against the forwarder must be in writing and delivered to the forwarder within 14 days from the date of delivery of the goods or the date the goods should have been delivered or the date of the event giving rise to the claim, whichever is the earliest.

The forwarder shall be discharged of all liability whatsoever in respect of any claim unless suit is brought against the forwarder in the court of Hong Kong within nine months from the date of delivery of the goods or the date the goods should have been delivered or the date of the event giving rise to the claim, whichever is the earliest.

Any contract with the forwarder shall be governed by the law of Hong Kong. Any claim or dispute must be determined exclusively by the courts in Hong Kong and no other court.

If a forwarder does business without its own STC to be incorporated into its contracts with its customers, the forwarder may not have the contract terms to support its various rights and to defend its liability position under the contracts. It is important to remember that it is completely no use to have the STC if the forwarder does not incorporate the STC into its contracts with its customers. The STC will only have the legal effect after the STC have been duly incorporated into the contracts between the forwarder and its customers. The most appropriate way is to have a term in the contract stating clearly that the forwarder’s STC form part of the contract, and attach a copy of the STC to the contract. The forwarder and the customer both sign and stamp on the contract.

The STC reference wording [e.g. All transactions are subject to the forwarder’s Standard Trading Conditions (a copy is available upon request), which in certain circumstances limit or exempt the forwarder’s liability.] should be printed at the bottom of quotations, shipping orders, shipper’s instruction forms. All these are the important documents at the beginning of business transactions. They are more or less the offers from the forwarder (the quotations) or from the customers (the shipping orders or the shipper’s instruction forms). Once acceptance is done, the contract terms (including the STC of the forwarder) are concluded.

Please feel free to contact us if you have any questions about the forwarder’s STC.



You cannot copy content of this page