When you work with a logistics company, you should always make sure to have an iron-clad shipment contract or destination contract. This protects you by spelling out what the carrier will do, and states who will take financial responsibility for any product lost or damaged during different points in the shipping process.
These logistics contracts are usually used when a seller isn’t the one delivering goods directly to the consumer, but when they use a third-party carrier to do so. So, it is usually between a seller, a carrier, and a buyer. Often, the contract states out that the seller is responsible for the shipment until it reaches the carrier. Once it is at the carrier, then the buyer would take responsibility for any losses.
The contract should identify both the buyer and seller, the definition and quantity of what is in the shipment, the price of the shipment to the buyer as well as how and when they will pay, the details of delivery, and who has the liability during the shipping process.
A destination contract is similar to a shipment contract. It details what will happen during a shipment. However, these types of contracts specify that the seller has all the liability until the shipment arrives at the buyer’s destination. So the main difference is the point of time that the liability shifts from the seller to the buyer.
A destination contract might be considered better for a buyer because they have less liability. However, both contracts are commonly used.
There are many terms you may see on a shipping contract that you don’t use in everyday life. Most are abbreviations:
Shipment contracts can be confusing if you’re not used to dealing with them. Let us help! We will make sure you understand any contracts related to our shipping and logistics agreements and spell out any of the terms for you. Contact us now to see how we can help!
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