The British International Freight Association (BIFA) has published new Standard Trading Conditions for contracts BIFA members perform from 1 January 2026.
Many freight forwarding companies and logistics operators in the UK are members of BIFA. The 2025 STCs reflect developments in freight forwarding practice and manage the risks of working with rapidly changing regulatory and market conditions in the UK and globally.
Forwarders should make arrangements and inform their customers that their terms are changing. Both forwarders and their customers should familiarise themselves with their revised rights and obligations.
Highlights
Broader definition of “customer”
If a BIFA member acts on behalf of someone, they are a customer under the 2025 STCs even if they are not paying for the service.
Extended provision for customs representation
BIFA members still act as direct customs agents by default but are also empowered to act as indirect agents if required.
Applicable across the UK
The same terms now apply across England and Wales, Scotland and Northern Ireland.
Improved power of sale
Members who have not been paid can seize goods wherever the goods are. They can sell them after seven days’ notice (down from 21) or immediately in some cases.
Accurate information
Customers must provide specific information about dangerous goods, or if the forwarder is doing customs work.
Clearer time limits
Depending on the claim, time limits are calculated from the date of delivery, expected delivery, or the date services were performed.
Operational flexibility and customs roles
BIFA members retain their wide discretion to decide how to fulfil their customers’ instructions, including the ability to act as agent or principal (although a statement that a forwarder considers itself to act as an agent will still not necessarily be conclusive as to whether this description accurately characterises its role). Where the forwarder contracts on the sub-contractor’s terms on the customer’s behalf, the customer has a right to ask for evidence of the contract. However, the 2025 STCs no longer treat the forwarder as having acted as a principal (and therefore liable to the customer) if it does not provide it within 14 days.
The 2021 STCs provided for the forwarder to act as direct representative only, but the 2025 STCs now also make provision for the forwarder to act as indirect representative, a situation which has become more commonplace since Brexit. Clause 7 provides that the forwarder is empowered in either capacity and also gives an express right to appoint a sub-agent.
Recommended practice remains to obtain a separate letter of empowerment signed by the customer empowering the agent and any sub-agent to act on the basis that is intended, rather than relying on incorporation of the BIFA STCs alone, as there remains some doubt as to whether HMRC and the courts will deem this sufficient to validly empower a customs agent to act on either basis. This is particularly important when a customs agent seeks to act as a direct representative. Templates can be found on the BIFA website.
Rights over goods – disposal and lien
A member who is owed money by its customer has a broad lien over goods and documents (such as bills of lading) in its control. This now expressly applies to items which are outside the UK (although it also remains subject to the law of the foreign country). The 2025 STCs allow the member to sell the seized goods after just seven days’ notice, rather than 21. They can dispose of them immediately if they are perishable, or if storing them will probably cost more than they are worth.
If the customer fails to take delivery, the time which BIFA members have to keep goods is slashed from 60 days to 14 days, with seven days’ notice of their intention to dispose of the goods. The right of immediate disposal is extended to all items within groupage loads, as well as perishable goods and the like. This stops a single item or customer holding up an entire consignment.
Financial terms and payment control
Unfortunately, even customers that appear substantial can go insolvent at short notice, so the terms dealing with payments have been substantially reworked to give BIFA members further protection.
Credit terms are automatically withdrawn if any payment is late anyway, but the forwarder has now been given the right to cancel credit at any point, so they can act immediately if a customer appears to be in trouble. The forwarder also gains an express right to choose how to allocate payments against the customer’s account.
A new provision prevents the customer challenging any invoice after 30 days. If they dispute only part of the invoice, they must pay the rest. Chasing old debts should become easier as a result. As ever, statutory interest applies to late payments at 8% above base rate.
Clear customer responsibilities
Forwarders depend on their customers to provide accurate information about the goods they are handling, and to make sure goods are properly packed. Where BIFA members help with customs formalities, problems can quickly escalate if there are errors in the data.
Customers need to understand what they must do, and the 2025 STCs clarify and emphasise their obligations. Specific provisions deal with dangerous goods, customs documents and compliance with regulations.
Claims and legal proceedings
Liability remains capped at 2 SDR per kg in the case of loss or damage. This is not affected by any declaration of value which the customer may make, for example to clear Customs. Every other claim is capped at 2 SDR per kg or 75,000 SDR, whichever is lower, with an annual cap of 75,000 SDR as well.
Instructions to insure the cargo have to be accepted by the forwarder, who can take a commission. As written acceptance is no longer required, it would be prudent to confirm in writing that insurance has not been arranged.
The time limit for customers to bring proceedings is easier to understand and work out. Claims involving cargo loss, damage, delay or mis delivery must be brought within nine months of the date of delivery (or intended delivery if the goods were not delivered).
Any other claim must be brought within nine months of the provision of services. However, if this is impossible, the customer has six months after it became aware of the events giving rise to the claim. This is a question of fairness: as forwarders’ services become more complicated, problems may not become apparent until later.
Jurisdiction and dispute resolution
The 2025 STCs apply across the UK. The previous practice of having different versions for England and Wales, Scotland and Northern Ireland has been changed to remove uncertainty where BIFA members operate across borders.
All claims should be brought in the English courts. BIFA members, but not their customers, can also choose arbitration or opt to sue in Scotland or Northern Ireland if they or their customer are based there.
Next steps for BIFA members and clients
The STCs are still only a general framework. They are not an alternative to setting out the details of the specific movement in a way which makes it clear what the forwarder has to do and identifies the paperwork required.
BIFA members should act now to:
- make sure that the right terms apply. Email footers, quotes, invoices and websites will all need updating
- train staff and educate customers on the changes and the information needed from customers
- review longer-term contracts in light of the changes and seek specialist legal advice where necessary
- consider notifying liability insurers of the change and steps being taken, although specialist freight liability insurance policies are likely to cover the latest version of the STCs automatically
- see whether they can take advantage of the new terms to earn commission where they insure their customers’ goods.
Customers should:
- review any longer-term logistics contracts
- take a close look at their obligations to make sure that they are providing the right information
- make it clear where information provided is based on the forwarder’s advice
- check their contracts with their own clients to ensure they have to provide the same information.
The 2025 STCs represent an evolution rather than a complete overhaul, but the changes are meaningful. Early action will help make the transition painless.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article, please contact the author in the first instance. Law covered as at September 2025.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at September 2025.