Carrier’s Lien
A carrier’s lien is the legal right that allows a carrier to hold or retain possession of goods until all freight charges, fees, or outstanding payments are settled. This right protects the carrier from financial loss when shippers or consignees fail to pay for transportation services. It ensures that the carrier has leverage to secure payment. Without this right, carriers would face higher risks in international trade.
The lien applies to charges directly related to the shipment, such as freight costs, storage, demurrage, or handling fees. If payment is not made, the carrier can refuse to release the cargo. In some cases, if the issue continues, the carrier may seek legal remedies such as selling the goods to recover the unpaid charges. This process is governed by local laws and transport regulations.
In logistics operations, a carrier’s lien helps maintain accountability between shippers, consignees, and carriers. It encourages timely payment and prevents disputes over unpaid charges. Carriers must communicate clearly when invoking a lien. Likewise, shippers and consignees must ensure that all charges are paid to avoid delays in receiving goods.
Overall, the carrier’s lien is an important safeguard in the transport industry. It ensures carriers receive compensation for their services. It also promotes financial responsibility across the supply chain. By understanding how liens work, shippers can prevent delays and maintain smoother cargo movement.
Frequently Asked Questions about Carrier’s Lien
Clear answers to the most common questions people have when learning about Carrier’s Lien.
A carrier can exercise a lien when freight charges or related fees remain unpaid, allowing them to hold the cargo until payment is settled.
Yes. Carriers usually provide written notice, explaining the outstanding charges and the intention to retain or withhold the goods.
In some jurisdictions, yes. If charges remain unpaid after notice, carriers may legally sell the cargo to recover costs, following local laws and regulations.