A contract of carriage is an agreement between a carrier and a shipper for the transportation of goods from one place to another. It sets out the terms under which the carrier accepts and transports the cargo. These terms may cover the route, freight charges, responsibilities, delivery, liability, and claims.
In international shipping, documents such as a bill of lading (B/L) or air waybill (AWB) may provide evidence of the contract of carriage.
Who are the parties to a contract of carriage?
The two main parties are generally the shipper and the carrier.
The shipper, also called the consignor, provides the goods for transport and supplies the required shipment information.
The carrier agrees to transport the goods under the applicable terms and conditions.
The consignee is the party named to receive the cargo at the destination. Freight forwarders, customs brokers, agents, and other logistics providers may also take part in the shipment, depending on the transport arrangement.
The exact terms depend on the transport mode, carrier, route, and shipment. A contract of carriage may cover:
- Cargo details: Description, quantity, cargo weight, dimensions, and other shipment information.
- Origin and destination: Where the carrier accepts the cargo and where it must go.
- Freight charges: Transport charges and applicable payment terms.
- Carrier responsibilities: The carrier’s obligations when handling and transporting the goods.
- Shipper responsibilities: Requirements for cargo information, packaging, documentation, and payment.
- Liability: Terms that may apply if cargo is lost, damaged, or delayed.
- Claims: Procedures and time limits for making a cargo claim.
Applicable laws, international conventions, tariffs, and the carrier’s conditions of carriage may also affect the shipment.
The documents used to record or provide evidence of a contract of carriage depend on the mode of transport and shipping arrangement.
Bill of Lading (B/L)
A bill of lading is a main transport document used in ocean freight. It provides evidence of the contract of carriage and serves as a receipt for the goods.
Certain types of bills of lading can also function as documents of title.
Sea Waybill
A sea waybill is a non-negotiable ocean transport document that provides evidence of the carriage arrangement and records key shipment details.
Unlike a negotiable bill of lading, it does not function as a document of title.
Air Waybill (AWB)
An air waybill is the main transport document used for air cargo. It records key shipment information and provides evidence of the contract of carriage between the shipper and carrier.
An AWB is non-negotiable and does not function as a document of title.
Road and Rail Transport Documents
Road and rail shipments may use consignment notes or other transport documents, depending on the route and applicable rules.
These documents record key shipment information and may provide evidence of the relevant carriage arrangement.
Charter Party
A charter party is a contract used when a shipowner agrees to provide the use of a vessel, or part of its capacity, under agreed terms.
It is mainly associated with charter shipping rather than standard liner freight.
A contract of carriage is the agreement under which a carrier transports goods for a shipper. A bill of lading is a transport document commonly used in ocean freight.
The two terms do not mean exactly the same thing.
In many shipments, the contract already exists when the carrier accepts the booking. The bill of lading issued later provides evidence of that contract and records key shipment terms.
A bill of lading also serves as a receipt for the goods. Certain types can function as documents of title.
In simple terms:
Contract of carriage = the agreement to transport the goods
Bill of lading = a document that can evidence that agreement
An air waybill is the main transport document used for air freight. It records shipment details and provides evidence of the contract of carriage between the shipper and carrier.
Like a bill of lading, an AWB is not the same thing as the underlying contract itself.
There is also an important difference between the two documents. An AWB is non-negotiable and does not function as a document of title.
This makes the AWB primarily a transport and shipment record rather than a title document.
A contract of carriage helps define the rights, responsibilities, and liabilities of the parties involved in transporting goods.
Its terms can affect important questions such as who must provide shipment information, what charges apply, and how the carrier will transport and deliver the cargo.
The contract and its applicable conditions can also become important when cargo is delayed, lost, or damaged.
Shippers should therefore review the relevant transport documents and conditions of carriage before shipping, especially when handling high-value, sensitive, or regulated cargo.
A clear understanding of shipping documents and responsibilities can help you prepare your cargo before booking.
ASLG coordinates international freight from China by air, sea, rail, and road. Explore our international logistics solutions, or send us your cargo details, origin, and destination to discuss the available options.
