Domestic air cargo transportation services are for clients who require quick and safe delivery of merchandise within the whole Brazilian territory.  

One of the services offered by air carriers and registered cargo agents is the collection and delivery of merchandise to the respective consignees, using own vehicles or vehicles belonging to outsourced carriers. From the place of collection  to the air carrier or cargo agent premises, the merchandise is accompanied by an Invoice issued by the shipper,  and then an airway bill is issued, which is used through to delivery at the agreed place of destination.   

The air carrier is liable up to the full value of the merchandise, for eventual loss or damage occurring during the transportation for which it was contracted, including collection and delivery, if such services are undertaken. The limitation of liability defined in the Warsaw and Montreal Convention applies exclusively to cases involving air accidents, it does not include occurrences like breakdown, shortage, loss and robbery.

Any limitation of liability required by an air carrier is incompatible with the Brazilian legal system. According to the Federal Constitution, reparation must always be comprehensive and for the full value of the loss caused.     

What should be done in such cases?

For an air carrier to operate also as a road transporter it will require to be registered in the RNTRC (National Register of Road Cargo Carriers), such as outsourced carriers. If the air carrier is not registered in the RNTRC, it will not be allowed to place obligatory trucker’s liability insurance (RCTR-C), nor facultative Trucker’s liability insurance for cargo disappearance (RCF-DC).

A waiver of subrogation clause may be included in the shipper’s Inland Transit policy (seller or buyer) to exempt the road carriers from liability in connection with risks not covered by the trucker’s liability insurance (RCTR-C), like robbery for instance. However, the waiver of subrogation clause does not include air transit, it is exclusively for road transit, the initial and, when necessary, the complementary transit for conclusion of the voyage.  Therefore, the air carrier should retransmit to its outsourced carriers, the risk management rules established in the waiver of subrogation letter furnished by the insurer of the shipper. 

In the event of a loss occurring in such cases, the indemnity will be tied to the provision of the documents required by the insurer, such as: police report, the driver’s ID card, Tax ID card, and Driver’s License; vehicle documents; copy of data checked with the risk management  company; and proof of vehicle tracking and escorting, if previously required.  

If a shipper uses the insurance of an air carrier, it must require proof of insurance with the details of the insurer, policy and covers, because inland transit insurance is compulsory, and the mentioned document will confirm compliance with this obligation.

CredRisk Marine offers full solutions for Cargo insurance, as well as for Air Liability insurance.

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