Cargo Retention Clauses are contractual provisions included in shipping agreements, bills of lading, or charter parties that grant carriers and logistics service providers the legal right to withhold cargo or make deductions from freight charges under specific circumstances. These clauses serve as protective mechanisms that allow carriers to retain possession of goods until outstanding freight charges, demurrage fees, or other financial obligations are satisfied, or to withhold payment when cargo discrepancies arise. Primarily utilized in maritime shipping and bulk cargo transportation, these clauses establish the conditions, procedures, and limitations under which cargo may be retained or financial adjustments made.
Key Characteristics
- Contractual Specificity
- Application in Bulk and Liquid Cargo
- Financial Protection Mechanism
- Dispute Resolution Framework
