Key takeaways
Updated terms strengthen carrier protections
New clauses clarify liability and responsibilities
Loading rules include safety checks
Customers must ensure equipment and personnel standards
Claims require evidence and quick action
Stricter time limits apply to loss or damage reports
In response to evolving market conditions, and the practical challenges faced in the logistics sector, the Road Haulage Association (RHA) has released an updated version of its Conditions of Carriage, applicable from January 2024.
The RHA has been producing standard trading terms for its members for over half a century. Last updated in 2020, its Conditions of Carriage are widely recognised as industry standard and are used by businesses throughout the logistics industry.
Whilst it is important to consult the Conditions themselves, the key amendments are in summary as follows:
Condition 4 - Enhanced Clarity on Loading and Unloading Operations:
Responsibilities during Loading and Unloading: The RHA Conditions 2020 (“the 2020 Conditions”) specified at Condition 4(1) that the customer holds primary responsibility for the loading and unloading of goods, indemnifying the carrier against any loss, damage, death or injury that may arise whilst the loading or unloading operations is taking place. In the RHA Conditions 2024 (“the 2024 Conditions”), the indemnity is extended further to cover any losses that arise due to the manner in which the vehicle is loaded, emphasising the customer’s role in safe loading practices.
Equipment and Personnel: The 2020 Conditions specified at Condition 4(2) that the equipment used in loading or unloading the vehicle must be suitable for that purpose. In the 2024 Conditions, there is now also a stipulation that the equipment used in loading or unloading must not only be suitable, but also well-maintained and operated by qualified personnel.
Inspection Rights: At Condition 4(5), the 2020 Conditions stated that the customer would provide the carrier with an indemnity against losses suffered as a result of the Carrier’s personnel complying with the instructions of the Customer or the Consignee. In the 2024 Conditions, this provision has been updated to specify that the carrier must be given a reasonable opportunity to inspect loads handled by the customer or consignee, with the indemnity expanded to include scenarios where this opportunity has not been provided.
Safety Assessments: The obligation to provide details of risk assessments for collection and delivery sites provided for at Condition 4(6) of the 2020 Conditions has now been expanded in the 2024 Conditions to include a requirement for the customer to make information available regarding the equipment used for loading or unloading, with carriers retaining the right to refuse entry to sites deemed unsafe at their sole discretion.
Condition 5 - Expanded Obligations of the Customer:
Information Provision: Condition 5(3) of the 2020 Conditions required the customer to provide the carrier with complete and accurate information such as may be required to perform its obligations under the contract. Under the 2024 Conditions, customers must now provide, or ensure that the consignee provides access to detailed information about the weight and contents of the consignment, promoting transparency and aiding in regulatory compliance.
Welfare Access: Reflecting changes brought on by recent global challenges such as the COVID-19 pandemic, there is a new requirement at Condition 5(4) of the 2024 Conditions for customers to ensure that carrier personnel are granted access to welfare facilities at delivery locations.
Condition 6 - Modifications to Receipts and Proof of Delivery:
Withholding of Carrier Charges: Condition 6 of the 2020 Conditions required the carrier to sign a document or electronic record acknowledging the receipt of the consignment. The revised 2024 Conditions are now expanded to specify that customers cannot withhold carrier charges on the basis of non-provision of a proof of delivery, streamlining financial transactions and dispute resolution.
Condition 14 - Stricter Time Limits for Claims
Condition 14(1) of the 2020 Conditions discharged the carrier of liability for loss or damage to goods unless advised of by the customer within seven days of the actual or intended date of the termination of transit. Under the 2024 Conditions, customers must now provide evidence alongside their written notifications of any loss, misdelivery, non-delivery, or damage, clearly attributing such issues to the carrier’s actions. This change aims to facilitate fair and swift resolutions to claims.
Usage
Regarding the adoption of the 2024 Conditions, carriers (and their insurers) need to remember that:
Only RHA members are authorised to use the Conditions. Unauthorised use of the Conditions can lead to claims of infringement of copyright and possible legal action.
The Conditions do not have mandatory application. They are contractual terms and must be effectively incorporated into the contract with the customer to apply, either by express agreement or by explicit reference to the Conditions before the contract with the customer is concluded. Bear in mind also that references to earlier versions of the RHA Conditions will continue to apply unless and until they are updated. In our view it would also be prudent to advise the customer that the 2024 Conditions are materially different to the 2020 Conditions so that the customer is prompted to inform themselves of the changes.
The Conditions regulate liability, but do not provide insurance to either the customer or the carrier. The customer should be encouraged to make sure they have taken out their own marine cargo insurance for the goods carried. Carriers should discuss their liability insurance with their brokers when changing to the 2024 Conditions.
As contractual terms, the Conditions can be varied to reflect specific operational practices, but care should always be taken when this is done to ensure that the variation is clear and binding.
Comment
It is clear that, when properly incorporated, the 2024 Conditions will afford even greater protection to the carrier. What remains to be seen is whether there will be any pushback from customers, either commercially or legally, to this protective regime.
