Contract of Carriage
Logistics Term
What’s the meaning of a contract of carriage?
A contract of carriage is the agreement between a carrier and the user. A carrier can be an air cargo or an ocean carrier, among others, while a user can be a consignee or a consignor. It carries the duties, rights, and liabilities of the parties involved in the contract. In addition, a contracted carrier can choose when and if to provide a service. The most common types of contracts of carriage are a charter party, bill of lading, sea waybill, and air waybill. Within a contract of carriage, there are several clauses. First is the party’s involved identification, which entails the person's name, home or office address, and contact data. Secondly is the description of work, the timeline, rights, obligations and liabilities, payment schedules and compensation, and Act of God.
Clauses of a Contract of Carriage
An Act of God permits the parties involved to avoid liabilities arising from a contract breach in the circumstances beyond their control. However, it does not excuse the operations entirely but only accommodates delays. Other clauses include insurance, dispute resolution, warranty, and signature and dateline. It's important to note that a contract of carriage has several advantages. These are that the cost is arrived at beforehand and that drawing out the rights, obligations, and liabilities is always advisable before operations commence. Additionally, a contract of carriage creates room for clarity for the involved parties.
