Carriers Lien

What is Carrier’s Lien?

A carrier’s lien is a legal right that allows a carrier, such as a shipping company or trucking firm, to retain possession of goods until outstanding freight charges are paid. This lien serves as a form of security to ensure that the carrier is compensated for its services.

The Nature of Carriers’ Liens

Carriers’ liens are typically governed by maritime law or common law principles. They provide a legal remedy for carriers who have transported goods and have not been paid for their services. The lien gives the carrier the right to hold the goods until the freight charges are settled.

Types of Carriers’ Liens

There are two primary types of carriers’ liens:

• General lien: This type of lien allows a carrier to retain all goods belonging to a particular shipper until all outstanding freight charges for that shipper are paid.
• Particular lien: A particular lien applies only to the specific goods that were transported and for which the freight charges remain unpaid.

The Scope of Carriers’ Liens

Carriers’ liens generally extend to all freight charges, including transportation costs, storage fees, and any additional expenses incurred by the carrier. However, the specific scope of a carrier’s lien may vary depending on the applicable laws and the terms of the shipping contract.

Exercise of Carriers’ Liens

To exercise a lien, a carrier must take reasonable steps to notify the shipper or consignee of the lien and the outstanding charges. The carrier may also need to provide notice to any other parties with an interest in the goods. Once notice has been given, the carrier has the right to retain possession of the goods until the charges are paid.

Limitations on Carriers’ Liens

While carriers’ liens are a valuable legal tool, there are certain limitations. For instance, carriers may not exercise their liens if the goods are perishable or subject to rapid deterioration. Additionally, carriers may be required to release the goods if a court order directs them to do so.

Wrapping up:

Carriers’ liens are an important mechanism for protecting the interests of carriers in the transportation industry. By understanding the nature, types, and limitations of carriers’ liens, shippers and consignees can ensure that their freight charges are paid promptly and that their goods are not unnecessarily delayed.