Transport delays – what are the risks and how can they be limited?

Recent McKinsey research has shown that customer satisfaction and trust are built not so much by fast, but by on-time deliveries. For carriers, punctuality is the foundation of stable relationships with contractors and a prerequisite for avoiding high contractual penalties, the use of which has become common industry practice. How do legal regulations define a delivery delay? What are the consequences of delays? And can they be effectively prevented? We answer!

Why are cargo deliveries delayed?

Delays in deliveries are often unavoidable. Arriving at the destination on time can be challenging due to the risk of various unexpected events, especially on long, international routes. Traffic jams, vehicle problems, collisions and accidents, sudden weather changes, and prolonged inspections – these are events that are difficult or even impossible to predict, yet pose a real threat to on-time delivery. The carrier is rarely solely responsible for extended order processing times, but they often face the full consequences.

Delay in delivery and carrier liability – what does the law say?

The definition of delay is contained in Article 19 of the CMR Convention:

“Delay in delivery shall be said to occur when the goods have not been delivered within the agreed timelimit or when, failing an agreed time-limit, the actual duration of the carriage having regard to the circumstances of the case, and in particular, in the case of partial loads, the time required for making up a complete load in the normal way, exceeds the time it would be reasonable to allow a diligent carrier. “

The same legal act also provides for:

The carrier’s liability for delays in delivery also stems from national law, specifically Article 65, paragraph 1 of the Act of 15 November 1984 – Transport Law. Furthermore, pursuant to Article 83, paragraphs 1 and 2, in the event of damage, the carrier is obligated to pay compensation up to twice the carriage charge. If the delay also affects the shipment itself, compensation commensurate with the reduced value is determined independently.

In summary, the carrier is generally responsible for late delivery. National and international law provides a comprehensive list of conditions for exempting the carrier from liability. These are listed in Article 17 of the CMR Convention and Articles 65(3) and 72 of the Transport Law. These include force majeure, incorrect instructions from the shipper or recipient, or defects in the goods. Failure to comply with these conditions results in the carrier being liable for:

However, pursuant to Article 473 § 1 in conjunction with Article 3531 of the Act of 23 April 1964 – the Civil Code – the parties may contractually extend the carrier’s liability. These provisions have become “a loophole” for applying contractual penalties in transport orders.

Delays mean contractual penalties and loss of reputation

For carriers, delayed deliveries have negative financial and reputational consequences. Lost customers, damaged reputation, and the need to pay contractual penalties are the primary risks. This year’s TLP report shows that the vast majority of Polish transport companies (as many as 74%) encounter contractual penalties in their contracts and orders, even for minimal delays of just a few minutes, regardless of their cause. As many as one-third of the surveyed carriers frequently encounter such provisions. Imposing contractual penalties exceeding the order value and excluding the shipper, consignor, and consignee from liability for delays is also common practice in the industry. Although such provisions raise serious legal and ethical concerns, accepting a financial penalty for delays is usually a condition for receiving a given order. Failure to do so means that the transport will be outsourced to another company.

Is it possible to effectively eliminate delays?

No, but they can be effectively countered. The most important thing is constant monitoring of the transport order, and if a risk of delay is detected, immediate and accurate response from the forwarder is required. Preventive measures are also crucial. Forwarders routinely use telematics, which allows for real-time monitoring of the route and measurement of the vehicle’s estimated time of arrival at the destination, also known as ETA.

ETA – delivery time with an accuracy of a few minutes

ETA (Estimated Time of Arrival) is the estimated time of arrival of a vehicle at its destination. Accurately calculating ETA is crucial both for the carrier, who is often subject to contractual penalties for delays, and for the customer, who wants to know when the shipment will be delivered. Modern telematics systems can measure ETAs with an accuracy of a few minutes. However, such a precise ETA calculation requires real-time monitoring and analysis of various factors. The most important include:

More advanced systems take into account drivers’ mandatory rest periods when calculating ETAs and identify critical points, which are the most common causes of delays. While some such points cannot be avoided, they can be factored in when creating an offer. When telematics detects a risk of a delivery delay, the freight forwarder receives immediate information, allowing them to immediately take optimal action, such as changing the driver’s route. The customer is also informed of the new arrival date.

In summary, delays are a natural part of transport companies’ reality due to the many factors that can contribute to their occurrence. Delays cannot be completely eliminated, but they can be effectively counteracted. Want to learn how we ensure on-time deliveries at Silesian Logistics? Contact us.