A Contract of Carriage is a legally binding agreement between a shipper and a carrier that outlines the terms and conditions for transporting cargo. This contract is often negotiated directly and is not subject to a public tariff, giving both parties the flexibility to agree on service terms.
The document details each party’s rights, responsibilities, and liabilities throughout the shipping process. It defines how, when, and under what conditions the goods will move from origin to destination.
- Customized agreement: Unlike standard tariff-based arrangements, it allows tailored terms.
- Defined responsibilities: Specifies liability, delivery timelines, and claims processes.
- Service flexibility: Carriers may choose when and how to provide transport under the agreement.
- Bill of Lading (B/L): The most widely used form, serving as a receipt, title document, and contract.
- Sea Waybill: Similar to a bill of lading but non-negotiable and without title transfer.
- Air Waybill (AWB): Used for air cargo; non-negotiable and issued by airlines or air freight carriers.
- Charter Party: A specialized contract for renting an entire vessel or aircraft.
A well-structured contract of carriage ensures legal protection, minimizes disputes, and clarifies obligations for international freight movements. It is essential for shippers who need reliability, cost predictability, and control over their logistics agreements.
