Carrier's Lien

A Carrier's Lien is a legal right bestowed upon providers of transportation services (carriers) to retain possession of the cargo they transport as security for the payment of services rendered.
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Carrier’s Lien

Definition

A Carrier’s Lien is a legal right provided to transportation service providers, allowing them to retain possession of the transported goods until they receive payment for the services rendered. This lien serves as collateral, ensuring that the carrier can recover expenses associated with the transportation of goods if the shipper fails to pay.

Examples

  1. Freight Transport: A trucking company delivers goods for a retailer but has not received payment for the services. The trucking company can exercise the carrier’s lien to retain possession of the goods until the retailer pays the transportation charges.

  2. Shipping Industry: If a shipping company transports goods internationally and the consignor fails to pay the shipping fees, the carrier can hold the cargo at the port under the carrier’s lien until the payment is secured.

Frequently Asked Questions (FAQs)

Can carriers sell the retained goods?

Yes, if payment is not made within a reasonable amount of time, carriers can sell the goods under lien to recover transportation costs, but they must follow legal procedures.

Is carrier’s lien applicable in all transportation modes?

Yes, the carrier’s lien can apply to road, rail, air, and sea freight transportation.

What happens if the shipment contains perishable items?

Carriers must handle perishable items with care. Lien laws might provide specific regulations to minimize loss and ensure fair handling of perishable goods.

  1. Freight Forwarder: A company that organizes shipments for individuals or corporations and assumes responsibility for transportation.
  2. Bill of Lading: A legal document between the shipper and the carrier detailing the type, quantity, and destination of the goods being transported.
  3. Demurrage: Additional charges paid when cargo is not moved within the allocated time period at the port or terminal.

Online References

  1. Cornell Law School - Carrier’s Lien
  2. Legal Information Institute - Bills of Lading
  3. Justia - Carrier Liens

Suggested Books for Further Studies

  1. “Freight Claims in Plain English” by William J. Augello
  2. “Transportation Law” by Paul Stephen Dempsey
  3. “Maritime Law” by Christopher Hill

Fundamentals of Carrier’s Lien: Transportation and Logistics Basics Quiz

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