The new BIFA Standard Trading Terms and Conditions 2025 – key changes

The British International Freight Association (BIFA) represents freight forwarders in the UK and publishes standard trading terms for use by its members. Following the UK’s exit from the EU and the impact on the forwarding industry, BIFA has published a 2025 edition which will become effective on the 31 December 2025. The new edition contains significant changes to time bars, limitation of liability and liens.

It must be remembered that these are contractual terms – so they need to be incorporated into the contract between the forwarder and its customer.  The terms do not apply without such incorporation and, where an earlier version of BIFA has been incorporated, it is essential that forwarders remember to update their agreements with this latest edition if they want the new terms to apply.  Any such incorporation should be in writing to avoid arguments about the validity or adequacy of incorporation.

The full text for the 2025 edition can be found here, and the 2021 edition here. Below, we highlight some of the significant amendments.  

Clause 7 

The position in relation to customs representation has become significantly more important since the UK left the EU.  Whilst the amendment seeks to update the position to reflect this, any forwarders providing customs services should seek specialist advice and insurance covering such services rather than simply rely on standard contract terms. 

Clause 8 

There have been some difficult questions about the effectiveness of a lien when the goods are situated in another jurisdiction.  If the goods are held at a third party warehouse or elsewhere outside the jurisdiction, it can be difficult to persuade a foreign court to enforce the English concept of a lien.  The amendment to this clause seeks to address this by expressly extending the lien to assets held outside the jurisdiction.  However, as a lien relies on possession of the goods and that will be subject to the location of the goods, it is unclear whether this amendment will have any effect on the decision of a foreign court.  

The notice period for a BIFA member to advise a customer that goods may be sold has been reduced from 21 days to 7 days, which will be welcomed by BIFA members as it will reduce storage costs.  It may, however, cause some concern about the reasonableness of such a notice period. Further, an important change at clause 8 (B) gives the BIFA member immediate rights to sell/dispose of goods where incurred charges for rent/storage are likely to exceed the expected sale value.

Clause 22 

The requirement to provide security for general average claims is now extended to include salvage claims.  Moreover, the obligation on the customer to provide security arises when the demand is made – and is no longer reliant on liability arising.  

Clause 26

The underlying limits of liability remain the same but the clause has been clarified to ensure that it covers claims arising from negligence.  It has also been simplified to ensure that a claimant cannot stack the various limits of liability by presenting claims arising from the same loss under multiple sections of the liability clause.  Where the old version contained various descriptions of claims and separate limits for each, such “limit stacking” appeared to be a risk for BIFA members.  
26 (C) – now expressly excludes  “consequential loss” and spells out a number of examples of the loss which it intends to exclude.

Clause 27 

The amendment to the time bar is very significant.  The times for notifying and bringing claims remain the same.  However, when calculating the 9 month time bar, there are some substantial amendments to the calculations of the date on which time begins to run.  

Previous versions started the 9 month period from the date on which the event or occurrence took place.  However, it was very difficult for a cargo owner to know when that was as the event or occurrence usually occurred during the carriage. The amendment causes time to start running from delivery; which is in line with most of the international conventions.  The amendment also provides relief where the claimant is unable to comply with the time limit.  This is likely to substantially assist with any challenges to the reasonableness of the clause under the Unfair Contract Terms Act 1977.  

Clause 28 

There will no longer be separate versions of BIFA for each region (Northern Ireland, Scotland England & Wales). The standard position adopted is that the English Courts will have jurisdiction and the dispute will be subject to English law.  However, the BIFA member has an option to commence proceedings in another court if the customer is based in that alternative jurisdiction.  
The clause retains the right of the Company to elect for arbitration.  Such floating jurisdiction and arbitration clauses are not always looked on favourably by courts and it will be interesting to see whether these give rise to challenges, particularly in light of the international nature of such disputes.

Dangerous goods

It is worth highlighting the substantial expansion of the provisions concerning dangerous goods. The new clause draws together some of the provisions which appeared throughout the old edition.  The obligations of the Customer and the rights of the BIFA member to dispose of the goods and claim indemnities are set out in much greater detail.  

The carriage of dangerous goods has received considerable attention in recent years, particularly in light of the consequences of fires involving lithium ion batteries and the environmental impact of certain cargo.  Forwarders are facing increasing pressures from carriers to address these issues and this clause seeks to draw these issues to the attention of the shippers of such goods.

Comment

The BIFA 2025 standard contract terms bring some clarity across several key areas, including to the time bar, the application of the limits of liability and the amendments to the lien.

Forwarders, cargo owners and their respective insurers will need to consider whether they will incorporate the new terms into their agreements.  If so, they will need to ensure that they have adequately incorporated the terms and that they have been drawn to the attention of any contracting parties.  Given the significant differences in the provisions, it is important that a clear transition date is identified to avoid the need for disputes about the version which applies to any particular transaction.
Inadequate incorporation may leave the BIFA member vulnerable and without protection of both the 2021 and 2025 BIFA terms.

Related items: