The Matter of Transport Law: Dry – But Necessary

Legal issues are still often viewed as opaque and threatening in the logistics and transport industry in Germany. While large corporations maintain their own legal departments, medium-sized and small businesses still struggle with these topics. Andreas Fuchs is a lawyer at the law firm ARNECKE SIBETH DABELSTEIN (ASD) in Frankfurt and specializes in logistics and transport law. In the following conversation, Loginfo24 was able to discuss his experiences from daily practice and gather some advice for the industry. Andreas Fuchs will report on transport law in irregular intervals on Loginfo24 and in the associated magazines.

By Andreas Müller

(Frankfurt/Main) Andreas Fuchs is a licensed attorney at the law firm ASD and specializes in transport, logistics, warehousing, freight forwarding, and air freight law. Legal topics are still often seen as a necessary evil in many companies, yet a careless approach can determine whether, for example, a lot of money is lost in the event of damage or not.

Loginfo24: Andreas Fuchs, is the impression misleading or is the area of law still treated as a stepchild by many logistics service providers, freight forwarders, or transport companies?

Andreas Fuchs: This impression is not incorrect. However, I have a certain understanding as a legal advisor. For the logistics provider, the operational business is paramount and demands most of the attention. Legal issues are often perceived as overly complicated nuisances and are more or less pushed aside.

I see my role as drawing the industry’s participants’ attention to specific problem areas and solution options, in order to then offer my support in overcoming these challenges.

Is it still sufficient today for logistics service providers to include the phrase “We operate according to the ADSp, latest version” on their documents?

The ADSp 2017 contains a variety of practical and balanced regulations. For smaller orders without special requirements, a general reference to these industry-specific terms and conditions can indeed provide a suitable regulatory basis. However, when special requirements exist (specific transport conditions, additional services, etc.) and definitely in the area of contract logistics, these standard regulations are not sufficient; a multitude of additional factors must be regulated (definition of the scope of services, remuneration and adjustment of remuneration, duration/termination rules, etc.). Template-like standards do not help here; smart solutions are required.

How can smaller and medium-sized companies legally secure themselves well without having to spend a fortune, or what is the legal “basic equipment” that every company must have?

First of all, I am not a fan of blanket solutions. Every company has its peculiarities and special requirements, especially in the diverse world of logistics.

In the tension between often high goods values and relatively low remuneration, liability/insurance issues are regularly important. Equally important are practical service descriptions with a clear delineation of mutual responsibilities, reliable regulations regarding contract duration, termination, and remuneration/price adjustments, etc.

Outside of industry-specific topics, examples of “basic equipment” include: a legally secure imprint, a suitable privacy policy (high risk of warning), trademark protection, compliance with labor and tax law requirements, etc.

Regarding costs: This is, of course, an important topic, especially for smaller companies. Often, a rough legal risk assessment from a “helicopter perspective” is sufficient in the first step. The nature and scope of the advice can be discussed and implemented closely. This allows the client to have constant knowledge and control over legal consulting costs.

Digitalization is also advancing rapidly in the logistics industry. Does this change the fundamental conditions in the area of law and does it need to be “retrofitted”? Is transport law already digitalized?

Logistics is continuously digitalizing and at an ever-increasing pace. Digitalization has also significantly changed and expanded transport legal advice in recent years. It is no coincidence that we, as a leading law firm in the transport and logistics sector, have a dedicated practice group for Digital Technology with a strong focus on this important area. We offer both tailored legal advice and specific Legal Tech solutions, especially for the logistics industry.

Transport law and transport insurance are inextricably linked. To what extent do you advise your clients in this regard?

The direct substantive connection between these two areas is undoubtedly present. In legal advice on liability issues, it is part of my “mantra” to always refer to the involvement of the affected insurers and the necessary coordination with them. The insurance law advice for industry participants is one of ASD’s core competencies.

However, I always point out that in transport law, despite their substantive proximity, the topics of insurance and liability must be evaluated separately. In particular, an insurance policy can generally not replace suitable liability regulations.

With the good old freight contract, many things were regulated, but in today’s time, so many accompanying factors come into play, such as the Supply Chain Due Diligence Act, requirements regarding climate goals, etc.

That is true, and it is a significant challenge for medium-sized and smaller transport companies that must be handled almost “on the side” in everyday life. I advise the industry very intensively and practically on topics such as LkSG, ESG, etc., and have held numerous webinars and lectures and published articles on this.

Various requirements are also coming to small and medium-sized logistics service providers, which they cannot escape. I am happy to assist with practical solutions in overcoming these requirements.

From practice: What has been the craziest case you have been involved in so far? Is there perhaps also an anecdote where you prevented a significant loss?

Due to attorney-client confidentiality, I cannot go into too much detail. An example of the complete prevention of a significant loss is the current case of a transport service provider who was claimed for alleged non-delivery of shipments totaling approximately EUR 800,000.00, up to the point of applying for a payment order. This very threatening situation was able to be completely defused out of court without a single euro having to be paid.

Among the craziest anecdotes are cases where the US Army attempted to send surface-to-air missiles via a parcel service, a warehousing service provider interpreted the term “chaotic warehousing” in practice in such a way that practically every stored item disappeared like in a black hole and could no longer be found, etc. etc. Whenever you think you’ve seen everything in your professional life, you’re surprised. That makes the job so varied and exciting.

Andreas Fuchs has been a licensed attorney since 1996 based in Frankfurt/Main.

He specializes in transport, logistics, warehousing, freight forwarding, and air freight law. Since 2014, Fuchs has been a Salary Partner at the law firm ARNECKE SIBETH DABELSTEIN.

His profile on the ARNECKE SIBETH DABELSTEIN website:
https://asd-law.com/anwalte/andreas-fuchs/

His profile on LinkedIn:
https://www.linkedin.com/in/andreas-fuchs-2376ab232/

Photos: © Loginfo24/Andreas Fuchs