A contract of carriage is the legal agreement between a carrier and a shipper, passenger, or cargo owner that sets the terms for transporting goods or people. In freight logistics, it defines the carrier’s responsibility, shipment details, service terms, liability limits, payment obligations, delivery conditions, and claims procedures. The contract of carriage may be shown through a bill of lading, waybill, air waybill, booking confirmation, carrier tariff, or transport agreement.
A contract of carriage is the legal agreement between a shipper and a carrier defining the terms under which goods will be transported. For ocean freight, the bill of lading is the contract of carriage. For air freight, the air waybill serves this function.
- Specifies the freight rate, route, transit time, and delivery terms
- Defines the carrier’s liability for loss or damage during transport
- Under COGSA, ocean carrier liability is limited to $500 per package unless a higher value is declared
- Sets the governing law and dispute resolution procedures
For related logistics context, see glossary entries on Bill of Lading (BOL), Air Waybill (AWB), Carrier, and Common Carrier.
