A liner operator has carried six containers of building materials to Port Réunion. The freight, payable at destination, has not been paid. The receiver disputes certain surcharges and demands delivery. The shipowner’s agent refuses: no freight, no cargo. Is it entitled to block delivery in this way?
No retention on board
The Transport Code rules out the master keeping the goods on board the ship for non-payment of freight (Article R. 5422-15 of the French Transport Code). The ship must be able to discharge and sail again. The practice of delivery “against payment” is therefore not based on retention on board, but on the mechanisms provided for by the Code and on the terms of the bill of lading.
Deposit and sale authorised by the court
Where the goods are not claimed, or where there is a dispute over delivery or payment of the freight, the master may obtain court authorisation to sell part of the goods to pay the freight, unless the consignee prefers to provide security, and to have the remainder placed in deposit (Transport Code, Article R. 5422-20). A consignee that disputes the amount thus has a simple means of obtaining delivery: providing security for the sum in dispute.
The carrier’s lien
The carrier holds a privilège (a statutory preferential right, akin to a lien) over the goods for payment of the freight, which survives for fifteen days after delivery, provided the goods have not passed into the hands of third parties (Article L. 5422-8). If the shippers or the persons entitled to the goods become subject to insolvency proceedings before that period expires, the carrier ranks ahead of all creditors for payment of its freight and of the average contributions owed to it (Article L. 5422-9). This lien must be exercised quickly: after fifteen days, or once the goods have been resold, it is lost.
Who owes the freight?
The debtor depends on the notations on the bill of lading: freight prepaid, freight payable at destination, payable by the shipper or by the consignee. A consignee that takes delivery of goods under a “freight collect” bill of lading exposes itself to paying the freight. Claims against the shipper or the consignee are time-barred after one year (Transport Code, Article L. 5422-11).
What the firm checks first
- The freight notations on the bill of lading.
- The amount in dispute: base freight, surcharges, ancillary charges.
- Whether security can be provided to obtain delivery.
- The fifteen-day period of the lien.
- The one-year time limit for bringing a claim.
For the firm’s services, see Carrier liability at sea and Bills of lading.
Further reading
- Cargo not collected at the port of discharge: storage, sale and who pays
- Your freight forwarder is holding your goods: the forwarder’s lien
- Unpaid hire: can the owner withdraw a time-chartered vessel?
This analysis is part of the firm’s work in maritime law.
Frequently asked questions
Can the carrier keep the goods on board until the freight is paid?
No (Transport Code, Article R. 5422-15). It may obtain court authorisation to sell part of the goods and to deposit the remainder (Article R. 5422-20).
Can the consignee obtain delivery while disputing the freight?
Yes, by providing security (Transport Code, Article R. 5422-20).
How long does the carrier’s lien last?
Fifteen days after delivery, provided the goods have not passed into the hands of third parties (Transport Code, Article L. 5422-8).