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Shipping Contract Types, Content and Important Points to Consider

Shipping Contract Types, Content and Important Points to Consider
Buse Aşıgöz Buse Aşıgöz
Uncategorized
15 April 2023
The world economy is driven by trade and transactions by oceans, air, rail and freight modes. These transactions will be carried out in accordance with the rules and regulations set by the authorized regulatory institutions in the world. Every company engaged in international trade must ensure that they are highly compliant with these regulations. More specifically, maritime industries comply with the rules and regulations adopted by the International Maritime Organization (IMO) and the laws of the respective countries when carrying out any International transaction through shipping. The Shipping Industry is the oldest industry in existence and thus becomes an important part of the world economy. In earlier days, all trade, transactions, travel, and transportation were mostly provided by shipping. It cannot be denied that it also plays a vital role in today’s economy.

What is the Shipping Industry?

International trade usually takes place by four main modes of transportation. Shipping industries, which are part of transportation, have a vital role in the growth of the world economy. The Maritime Industry provides domestic and global companies with facilities to transport goods and commodities to engage in transactions such as selling and trading and trading. It also offers domestic and international delivery opportunities directly to its customers. Recently, direct customer demands by electronic commerce businesses have come to the fore. E-commerce is the activity of selling and purchasing over the internet. Amazon, ebay and many more potential e-commerce companies are expanding their shipping business by providing international trading opportunities for customers and seller or importer and exporter.

Road Contracts

Car carrier contracts are the last thing people think of when looking for a reputable shipping company. However, the contract is a document that proves and guarantees your shipping agreements. These are important, so we outline the items you should consider before negotiating or signing a shipping contract to make sure you’re well prepared.

What is the Shipping Contract?

It is a binding legal document between the carrier and the sender. A shipping contract outlines the parties’ responsibilities in the event of damage, loss of cargo or force majeure. On top of that, car carriage contracts indicate when the responsibility shifts to another party. As a rule, a contract includes:
  • Names of the parties,
  • Delivery Information,
  • Departure and destination,
  • Price,
  • Refund policy.
In general terms, shipping contracts are contracts between two parties for the transportation of a cargo. These contracts can be made between the cargo owner and the carrier, as well as between the carrier and the cargo consignee. Shipping contracts set out all the conditions for the carriage of the cargo and define the rights and obligations between the parties. Shipping contracts can generally be of the following three types:

Ship Cargo Contract

Such contracts are made for cargoes transported by sea. The ship cargo contract is made between the cargo owner and the carrier and the transportation, delivery and payment methods of the cargo are specified.

Road Transport Agreement

Such contracts are made for goods transported by road. The road transport contract is made between the cargo owner and the carrier and the transportation, delivery and payment methods of the cargo are specified.

Airline Transport Agreement

Such contracts are made for cargo transported by air. The air transport contract is made between the cargo owner and the carrier and the transportation, delivery and payment methods of the cargo are specified. In shipping contracts, it is important to pay particular attention to the following:

Contract terms

All terms of the shipping contract must be specified. Issues such as the date the carrier will carry the cargo, the place where the cargo will be delivered, the transportation fee, the payment method and insurance should be specified.

Responsibility

It should be stated in the contract that the carrier is responsible for the safe transportation of the cargo. In case of loss, damage or delay of the cargo, the responsibility of the carrier and the form of compensation should be stated.

Insurance

The cargo owner may agree with the carrier to insure the cargo. Coverage, premiums and the name of the insurance company should be specified.

Cancellation and Change

In the contract, it is determined what will be done in case of any change or cancellation in the transportation date or place of delivery of the cargo.
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