Royal Haulage Association Conditions of Carriage 2024: key provisions

Are you a business which is signed up to the Royal Haulage Association (RHA) Conditions of Carriage 2024 (Conditions 2024)? If so, read on, as this article outlines some important matters which concern all carriers and customers within the logistics sector.  

In January 2024, RHA announced that it had updated the Conditions of Carriage 2020 and introduced the Conditions 2024. The Conditions 2024 revised the previous edition to include additional protections and safeguards for carriers within the context of operation, provision of information and claims.

For parties seeking to rely on the Conditions 2024, they must be members of the RHA. Where parties rely on the Conditions 2024 and do not have RHA membership, it is possible that they may be subject to claims from the RHA for copyright infringement.

Where carriers and customers wish to rely on the Conditions 2024, they should ensure the Conditions 2024 are properly incorporated into their agreement. To do this, the terms should be agreed at the time the contract is formed. In the event the Conditions 2024 are communicated on the invoice (or in any other form after the agreement is formed), it brings into question whether the Conditions 2024 have been properly incorporated (as it is arguable the contract is formed prior to the issuance of the invoice).

Below we explore five key provisions of the Conditions 2024 and outline their significance to carriers and customers alike.

Condition 4: loading and unloading

The customer is responsible for the loading onto and unloading of goods from the customer’s vehicle. The customer indemnifies the carrier if the carrier incurs loss in connection with the loading/unloading of the goods. Additionally, there is no cap on the customer’s liability under this provision and there is no reciprocal indemnity imposed on the carrier.

Clearly, from the customer’s perspective this provision exposes it to potentially a wide range of liability. Therefore, it would be well advised to try and limit this. The Conditions 2024 do enable the customer to negotiate the extent of its exposure under Condition 4. Given the starting position is drafted heavily in favour of a carrier, it is unlikely that a carrier will want to depart from the Conditions 2024 as drafted. The ability for a customer to strike a more balanced clause will depend on its bargaining position and general commercial factors which render it reasonable for the clause to be amended.

Condition 12: limitation of liability

This section outlines the carrier’s total liability in relation various types of losses to the customer. This is particularly important as it sets out the extent of liability the carrier is subject to and provides what losses are not recoverable for the customer.

Condition 12 outlines that the liability of the carrier in respect of claims relating to physical loss of, mis-delivery of, or physical damage to goods within the consignment shall be limited to the lesser of:

1. the value of the goods actually lost or mis-delivered, at the place they should have been delivered;
2. the amount by which the damaged goods have been depreciated in value by reason of that damage;
3. the cost of replacing the goods actually lost or mis-delivered and/or reconditioning or repairing any damage to the goods; or
4. a sum calculated at the rate of £1,300 per tonne on the gross weight of the goods actually lost, mis-delivered or damaged.

As the size of each consignment may differ and the type of goods being carried may vary in value, it is important for both the carrier and customer to consider whether the liability caps provided are suitable. However, as carriers’ insurance policies are usually provided on the basis of the unamended Conditions 2024, carriers will have to decide if they can (or want to) obtain higher insurance cover to accept higher limits.

Condition 13: indemnity to the carrier

The customer indemnifies the carrier against all loss or damage the carrier incurs if the customer (or a party it instructs) breaches the Conditions 2024. There is no reciprocal indemnity given by the carrier to the customer.

This places significant risk on the customer as there is no requirement on the carrier to take steps to reduce the losses it suffers because of the breach. There could be a scenario where a carrier suffers a breach, it does not take reasonable steps to reduce its losses and the customer is therefore liable for those losses (despite the fact the carrier could have taken reasonable steps to mitigate the loss). 

Condition 14: time limits for claims

Where a customer is making a claim for physical loss of, mis–delivery or non-delivery of, or physical damage to goods comprised within a consignment, the customer is required to provide written notice to the carrier within seven days of the date transit did terminate or should have terminated along with evidence to demonstrate that such losses are attributable to the carrier’s actions. Failure to adhere to these strict requirements enables a carrier to “refuse a claim”.

This notice period is strict (and very short) and if not adhered to, could lead to the customer losing out on significant sums of money. It is important for customers to be aware of this provision and act accordingly. A customer should also keep a record of when notice was provided to ensure the carrier does not claim the notice was not properly received.

Condition 18

Outlines the Conditions 2024 is subject to the laws and jurisdiction of England.

Given the nature of logistics involves carriers and customers from inside and the outside of England, it is important for parties to the agreement to determine whether English law and jurisdiction is appropriate. If the customer is based outside of England, then it may be appropriate for the agreement to be subject to the laws of where the goods are to be loaded/unloaded (although for International transport of goods by road, the CMR convention may apply compulsorily by law). In this scenario, a carrier would be well advised to seek legal advice from lawyers who are specialists in the jurisdiction the goods are to be loaded/unloaded.

However, if both parties are based in England or the goods are being loaded or unloaded in England, then it makes sense for both parties to subject themselves to the laws and jurisdiction of England and Wales.

The Birketts view

Whilst the Conditions 2024 are helpful, it should not be seen as a “catch all agreement”. It is important for carriers and customers to consider whether the obligations and rights set out within the Conditions 2024 are appropriate for them.   

The Conditions 2024 afford greater protection on the carrier (as it relates to indemnities, caps on liability and notice provisions for claims made against the carrier) than it does to the customer. The customer will need to weigh up the commercial interests of its business against the risks which are posed by solely relying on the Conditions 2024.

Parties may seek to negotiate the terms within the Conditions 2024, and in such circumstances, it is advisable for parties to obtain professional advice to ensure each party enters into an agreement which provides them with appropriate protection.