Microsoft Sues DHL Over Trainload Of Dropped Xboxes

from the big-or-small,-they'll-break-them-all dept

Over the years, I've certainly had my fair share of bad experiences with both UPS and FedEx, but for me, personally, no delivery company has been worse on a regular basis than DHL. Almost every time I've had to deal with the company the experience has been somewhere between bad and ridiculous -- and I've heard similar stories from friends as well, from undelivered packages, to crushed packages -- even to a story of a phone shipped via DHL that arrived with the box torn open and the phone missing. It appears that we individuals aren't alone in our annoyances with DHL. Microsoft is now suing the company for how it dealt with a shipment of Xboxes that were on a train that derailed. Consider this a scaled up version of the old "crushed box" delivery that you or I might be used to. Apparently, the train had six containers full of Xboxes that were damaged -- with DHL refusing to pay for the damages or missing Xboxes that didn't make the rest of the journey.

Filed Under: delivery, lawsuits, xbox
Companies: dhl, microsoft

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  1. identicon
    B, 14 Oct 2008 @ 8:12am

    A small lession on liability...

    There's a difference between liability and insurance when it comes to shipping goods. The knee jerk reaction to someone damaging goods like this is that they should pay the full market value for what was lost. But think about that for a second from the position of the freight company. If I give you a container with $4.3 million (21,600 xboxes x $200) and tell you I'm going to pay some small amount to ship it (for the sake of argument let's say $10k), but I'm going to hold you accountable for the market value if you break them... what's the likelihood that you'd be willing to agree to those terms? At a certain point of adjustment, your margin doesn't cover your risk and you can't afford to ship the goods. Liability for cargo is surprisingly low and usually done by the container regardless of content.

    Microsoft wants DHL to cover the expense as they had purchased insurance on the cargo... and that's simply not how things work. It's just like when you buy something on eBay but skimp on the shipping insurance. Your ceramic kitty cat arrives as a fine powder because of poor shipping or packing and you're SOL because you assumed the risk yourself.

    If DHL was shown to be negligent in some way then Microsoft could have a case... but if the train derailment was a true accident then I don't think the big M has a leg to stand on. That said, DHL will probably just settle out of court to make the problem go away.

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