Shipper And Carrier Contract Template for the Philippines

A Shipper And Carrier Contract is a legally binding agreement that establishes the terms and conditions for transportation services between a party requiring goods to be moved (the shipper) and a party providing transportation services (the carrier). In the Philippines, these contracts are governed by multiple laws including the Civil Code, Code of Commerce, Public Service Act, and Carriage of Goods by Sea Act, making proper documentation essential for legal compliance and business protection.

When do you need this document?

You need a Shipper And Carrier Contract when establishing ongoing transportation relationships, whether for domestic shipments within the Philippines or international import/export operations. Manufacturing companies require these agreements when shipping products to distributors, while e-commerce businesses need them for regular delivery arrangements with logistics providers. Export companies must have these contracts in place before engaging freight carriers for international shipments, and retail chains need them when coordinating with transportation companies for inventory distribution. The contract is particularly crucial for businesses operating across multiple Philippine islands, where maritime transportation regulations under the Carriage of Goods by Sea Act apply.

Key legal considerations

Your contract must clearly define the scope of transportation services, including pickup and delivery locations, cargo specifications, and handling requirements. Liability provisions are critical, as Philippine law under the Code of Commerce establishes specific carrier responsibilities and limitations. You should include comprehensive insurance requirements, as carriers must maintain adequate coverage under the Public Service Act. Payment terms, including freight rates, fuel surcharges, and additional fees, must be explicitly stated to avoid disputes. Risk allocation clauses should address cargo damage, delays, and force majeure events, particularly considering the Philippines' susceptibility to natural disasters. Include clear procedures for cargo documentation, customs clearance for international shipments, and compliance with Bureau of Customs requirements.

Legal requirements in Philippines

Under Philippine law, carriers must be properly licensed under the Public Service Act if providing common carrier services, and your contract should verify this compliance. The Civil Code requires contracts to include essential elements of consent, object, and consideration, with specific provisions for transportation agreements. For maritime transportation, compliance with the Carriage of Goods by Sea Act is mandatory, including proper bill of lading procedures and carrier liability limitations. Your agreement must specify dispute resolution mechanisms, as Philippine courts have jurisdiction over transportation contracts involving domestic operations. Consumer protection provisions under the Consumer Act may apply when shipping consumer goods, requiring additional safeguards. The contract should also address customs and regulatory compliance for international shipments, including proper documentation and clearance procedures required by the Bureau of Customs and other relevant Philippine agencies.