What are Freight Contracts? & What are Their Types?

Freight contracts are legal agreements between the carrier and the cargo owner used in the transportation sector, especially in maritime transport. These contracts cover the cost of the goods to be transported, the conditions of carriage, and the responsibilities of the parties. Freight contracts play a vital role in international trade and ensure the safe and efficient delivery of goods to the buyer. The history dates back to the beginning of maritime trade. Even in ancient times, agreements were made between merchants and shipowners on transportation fees and conditions. Over time, these agreements became more complex and an important part of international trade law.

Importance and Function of Freight Contracts

They hold significant importance in international trade. These contracts clarify the rights and obligations between the carrier and the cargo owner, providing trust and stability in commercial relationships. Additionally, they minimize risks that may arise during transportation and set standards for the safety of goods.

Economic Effects

Freight contracts play a significant role in the global economy. By regulating the flow of goods in the international arena, they contribute to the smooth operation of worldwide trade. These contracts strengthen commercial relations between countries and companies and support economic growth.

Types and Characteristics

Freight contracts vary according to different needs and situations. The main types are: Time Charter: The ship is rented for a specific period, and the cargo owner has full control over the use of the ship. During this period, the ship operates according to the directives of the cargo owner. Voyage Charter: A ship is rented for a specific journey. The amount of cargo to be transported and the route of the journey are predetermined. The carrier undertakes to transport the goods along the determined route. Carriage Contract: A standard transportation agreement. The carrier is obliged to transport the goods along a certain route for a fee. Combined Transport Contract: Contracts that include multiple modes of transportation (land, sea, air) and are often preferred in international transport. Freight contracts, especially for the transportation of dangerous goods or for specific geographical regions, may contain special provisions. Such situations require the contracts to include more detailed and specific terms.

Legal Structure and Practices of Freight Contracts

Regulated by international trade law, maritime law, and local laws, these contracts detail elements such as the duration of transportation, fees, and delivery conditions. Arbitration or courts often intervene in resolving disputes. Contracts specify how disputes will be resolved and which law will apply.

Considerations in Freight Contracts