Contract Transportation

Contract Transportation refers to a mode of transport in international trade where the buyer and seller sign a dedicated transportation contract specifying the carrier, freight charges, route, loading and unloading time, and allocation of responsibilities. It differs from the common carrier model of liner shipping and is typically used for bulk cargo, project equipment, or long-term cooperation. Use cases include: under trade terms such as FOB, CIF, and CFR, the buyer or seller signs a contract of affreightment, voyage charter, or time charter with a shipowner or freight forwarder to control transportation costs and risks. Precautions: clarify the nature of the contract (charter or entrustment for transport), allocation of loading/unloading costs (such as FIOST), demurrage and despatch, applicable law, and dispute resolution clauses. The difference from 'bill of lading transportation' is that contract transportation emphasizes the transportation contract itself rather than the bill of lading as a document of title; the difference from 'multimodal transport' is that contract transportation may involve only a single mode of transport, but can also be combined. Foreign trade practitioners should ensure that the transportation contract is consistent with the terms of the trade contract to avoid disconnection of responsibilities.