Westinghouse contracted with Panalpina, a freight forwarder, to arrange for the transportation of an electric transformer from Italy to Iowa. Panalpina stated to Westinghouse, "[R]est assured your shipment will receive door to door our close care and supervision . . . ." Westinghouse paid Panalpina over $20,000 for its services. As was the industry custom, Panalpina did not issue a bill of lading for the shipment. Panalpina hired an Italian company to coordinate the movement of the transformer through Italy, who then hired a local stevedoring company, to load the transformer aboard the ship for the voyage to the United States. Panalpina never inquired of the stevedore how the transformer was lashed for the ocean voyage, nor did it supervise the endeavor. During the ocean voyage, the ship encountered heavy seas and the transformer broke loose, crushing a laser-cutting machine owned by Prima. Prima sued the owner of the ship, Westinghouse, and Panalpina for damages to the laser. The district court held Panalpina liable, and Panalpina appealed.
1. Explain the difference between a carrier, a freight forwarder, and a NVOCC.
2. How does the liability of each of the above differ for damage or loss to goods?
3. Why did Panalpina's contractual assurance that the shipment would "receive door to door our close care and supervision" not subject them to liability?