A Carrier’s Lien is a legal right granted to a carrier to retain possession of the shipped goods until payment for the transportation services has been made in full.
The Carrier’s Lien serves as a security interest, allowing carriers to hold onto the cargo if the shipper fails to pay the freight charges or other related costs. This lien ensures that carriers can recover their costs by retaining the goods until payment obligations are met. It applies to all types of transportation, including sea, air, and land freight. The carrier can exercise this right by refusing to release the cargo to the consignee or even selling the goods, following proper legal procedures, to cover the outstanding debt. Understanding the implications of a carrier’s lien is crucial for both shippers and consignees to ensure smooth transactions and avoid potential disputes over unpaid freight charges.
Carriers Lien