Transportation of goods in bulk has always been a part of a business. Every company that manufactures, sells, or purchases items requires shipment of the products from place to place. Sometimes, products are damaged or broken during the transportation as shipping is done mostly through the sea or air and occasionally via land.
There are several reported cases where products get stolen during the shipment. These cases cause disputes between the sender and the transporter. To avoid such disagreements, it is advised to sign a document under the name of a transport contract. It fulfills all requirements allowing the parties to escape from conflicts.
What Is a Transportation Contract?
Transportation has different means of operation throughout the world. Some transportations are done by road while some are done over the seas. A major version of transportation is done within the airspace. These modes of transportation are subdivided into various categories. To handle the shipment of goods through any of these modes of transportation, a contract is signed between the transmitter and transporter.
This contract is called the transportation contract. This acts as a legally binding document between the parties referring to the transportation services. According to this contract, the stakeholders are bound to follow the restrictions of this contract. This pact is signed by two companies when a party is willing to transport goods but does not have the resources for self-transportation.
In this case, the party contacts the transporting company to send their goods to the destination. This contract is signed to deal with the shipment of goods. These goods can be cars, automobile parts, food items, and similar other things. In this contract, the name of both parties is written clearly. The decided fee cost on the shipment, time duration, number of goods, and weight of the items is added in the form.
What is Transportation Contract Used For?
As mentioned earlier, a transportation agreement is signed to handle the matters of shipments legally. Some of the reasons to use this contract are as follows:
- For Shipping Goods in Bulk: This contract is mainly used when transporting items in large quantities. To transport items in bulk, big transportation services are required. Transportation contract is used in the cases where domestic freight transportation is involved.
- For Representing a Contract of Carriage: This contract is used to legally write down all the terms and conditions of the shipment. It is necessary to make a document that has every detail from the start to the end of the agreement.
- For Declaring the Quality of the Shipped Goods: Every detail related to the goods is mentioned in this document. The condition of the goods before shipping is written clearly in this agreement. In case of any damage during the shipment, if the customer refuses to accept the item, the document will act as proof. The reputation of the owner of the goods shall be damaged with the absence of this document.
- For Proclaiming the Owner of the Goods: This document holds the name of the owner of the items. This helps the purchaser to clear the custom issues and transfer the ownership of the goods to other people without any hindrance.
Types of Transportation Contract
For each category of transportation service, there is a different type of transportation service contract. Following are some of the types of these contracts:
- Bus Service Contract
This contract is signed between the bus owner and the part-time bus renters. Under this contract, both parties decide the rent of the bus and schedule. The condition of bus and fuel mileage is also specified along with the basic details of the contract holders.
- Livestock Transportation Contract
This contract is signed to transport livestock animals through some vehicles. It is compulsory for the transporter and the dealer to give all the information regarding their contact information. It is necessary to write the weight of the livestock animals in this contract.
- Marine Transport Contract
This type of transportation is done over through seas using ships and boats. To transport goods over the seas, a contract is signed named as marine transport contract. With the help of this agreement, the owner and transporter of the goods come to an understanding to carry items to other places.
- Air Transport Agreement
This kind of contract is for transportation through airplanes. The date of the departure and arrival of the transportation is mentioned in this contract.
How Does Transportation Contract Work?
In a transportation services agreement, there is a set of steps that are needed to be followed to fulfill a systematic procedure of shipment. By using CocoDoc, an online platform, it gets much easier to make such contracts with only a few clicks. The detail about the working of this contract is explained below:
- Add Sender and Transporter Information: First of all, the names of the sender and transporter are written. The details about the sender's company is a necessary part of this field.
- Mention the Responsibility of the Transporter and Client: In this field, the responsibilities of both parties are written. The responsibility of the transporter includes safety and timely shipment of the goods. The client is responsible for the payment of the charges during the transportation and inspection of items before delivery.
- Insert Rules and Regulations: The next step is to write the rules to handle the diverse scenarios during the shipment. These scenarios may include theft and hijacking of the transportation vehicle.
- Include Penalty and Termination Clause: Under this step, the stakeholders decide the penalty in case of late delivery. This clause also holds reasons to terminate the agreement at any point.
- Add Fields for Signature: The final step requires contract holders to sign the document after using CocoDoc’s editing services.
In a business, transporting goods over the seas or through any means cannot be avoided; however, disruptive situations caused by it can be evaded. This could be done if one uses a transporter agreement. It provides an accurate transport agreement format and suitable transportation contracts sample to the users to work with.