Contract of Carriage Template for England and Wales
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What is a Contract of Carriage?
Contracts of Carriage in the United Kingdom are shaped by the mode of transport. International road carriage is governed by the CMR Convention, sea carriage frequently by the Hague-Visby Rules, and air carriage by the Montreal Convention, each applied through United Kingdom legislation and each imposing its own liability limits and time bars. Domestic carriage is often performed on industry standard trading conditions, such as those of the Road Haulage Association or the British International Freight Association, which limit liability by weight and impose short notification periods.
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Frequently Asked Questions
Which liability regime applies to my consignment?
It depends on mode and route. International road carriage engages the CMR Convention, sea carriage under a bill of lading commonly the Hague-Visby Rules, and air carriage the Montreal Convention. Each applies compulsorily where engaged, so the contract cannot reduce the carrier's liability below it.
Why is the carrier's liability less than the value of my goods?
Convention limits are calculated by weight rather than value, so a light high value consignment can recover a small fraction of what it is worth. The remedy is cargo insurance, or declaring a higher value and paying for the increased limit.
How quickly must I notify loss or damage?
Quickly, and the periods differ by regime. Visible damage generally has to be noted at delivery, concealed damage within days, and proceedings brought within a short time bar, often one year. These are applied strictly and missing one can end an otherwise good claim.
Who can sue the carrier?
Whoever bears the risk in the goods at the time of loss, which depends on the sale terms rather than the carriage contract. Establishing whether risk had passed to the buyer is often the first question in a cargo claim.
What if a freight forwarder subcontracted the carriage?
Then the identity of the contracting carrier matters. A forwarder may act as principal, taking on carrier liability itself, or as agent arranging carriage with another party. The distinction decides who can be sued and on which terms.
About the Contract of Carriage
A Contract of Carriage records who is moving what, from where to where, on what terms, and how much the carrier will pay if the goods do not arrive intact. Under England and Wales law the applicable liability regime is often imposed by convention rather than chosen by the parties, and it can cap recovery well below the value of the goods.
When do you need this document?
You need a Contract of Carriage whenever goods are moved by a third party for reward: engaging a haulier for domestic or international deliveries, shipping goods by sea under a bill of lading, sending time critical consignments by air, or appointing a freight forwarder to arrange movements across several legs. It also matters when you are the carrier and want your standard terms, limits and time bars to apply consistently.
What does it cover?
The document identifies the goods and the journey, sets the freight and any accessorial charges, and states the liability regime with its limits and exclusions. It sets out the practical machinery that decides claims in real life: what counts as proof of delivery, how quickly loss, damage or delay must be notified, and the period within which proceedings must be brought. It deals with dangerous and excluded goods, with the carrier's right to subcontract and to exercise a lien for unpaid charges, and with who is expected to insure the goods themselves.
Common pitfalls
The most expensive mistake is assuming the contract price of the goods is the measure of recovery. Convention limits are calculated by weight, so a light high value consignment can be worth a fraction of its value in a claim, and the answer is cargo insurance or a declared value with an agreed higher limit, not better drafting of the liability clause. The second is missing a notification deadline or a time bar, which are short and are applied strictly. The third is failing to identify who actually contracted as carrier where a forwarder has subcontracted the movement, which decides who can be sued at all.
GOVERNING LAW
Applicable law
This Contract of Carriage is drafted to comply with England and Wales law. Key legislation includes:
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