Terms of Carriage

Back to Glossary

What are Terms of Carriage?

Terms of carriage establish the legal framework for moving goods. They form the contractual baseline between the customer and the carrier, covering how cargo is accepted, handled, transported, and delivered, and what happens if something goes wrong. They define liability, limits, and process across the shipment lifecycle, helping teams manage risk, cost exposure, and disputes consistently, especially when multiple parties or countries are involved.

Terms of carriage are present in the following:

  • Bill of lading (B/L): A shipping document that acts as a receipt and contract of carriage (and may also function as a title document depending on type).

  • Waybill: A non-title transport document, commonly used for general freight and often issued digitally.

  • Sea waybill: A non-title document used in ocean shipping when title transfer via the document isn’t needed.
     

What Terms of Carriage Cover

  • Liability and limits: What the carrier is responsible for, and any caps on compensation.

  • Cargo description: Declared weight, dimensions, and cargo type used for planning and safe handling.

  • Service and delivery conditions: Expected timeframes and conditions that may affect delivery.

  • Insurance position: Whether insurance is required or recommended, and how it sits alongside liability limits.

  • Claims process: How to raise a claim, required documents, and time limits.