A carrier’s lien is a legal right that allows a carrier, freight forwarder, warehouse, or logistics provider to hold cargo until unpaid freight charges, storage fees, accessorials, or other related costs are settled. In shipping, the lien protects the provider by using the cargo as security for payment. A carrier’s lien can delay delivery or release of goods, so shippers and consignees should resolve billing disputes quickly and review transport terms before cargo is withheld. After legal procedures, the carrier may sell the goods to recover the debt.
- Exercised when freight charges are past due
- Can cause significant supply chain disruption for the consignee
- Consignees who purchased on CIF or DDP terms may find cargo held if the seller failed to pay freight
Settling freight invoices promptly is essential to avoid lien situations and cargo delays.
Related terms: Freight Bill Audit, Storage Charges, Common Carrier, Bill of Lading (BOL).
