What is Carrier?
A carrier is the party that undertakes, under a contract of carriage, to transport goods and is liable to the cargo interests for their loss, damage or delay within the limits of the applicable regime. The Hague-Visby Rules define the carrier as including the owner or the charterer who enters into a contract of carriage with a shipper, so the legal carrier is not always the party operating the ship. The Montreal Convention distinguishes the contracting carrier, which makes the contract with the shipper, from the actual carrier, which performs all or part of the carriage. In US ocean law a non-vessel-operating common carrier (NVOCC) is a common carrier that issues its own bills of lading and assumes carrier responsibility to its shippers without operating vessels. Forwarders can therefore be agents in one transaction and contractual carriers in another, depending on the documents they issue and how they contract.
Why it matters for forwarders
Whether a forwarder acts as agent or carrier determines its liability, insurance needs and the defences it can rely on, and it is decided by the facts, including whose bill of lading or air waybill is issued and how the service is invoiced. Issuing a house bill or charging an all-in freight rate usually points to carrier status, making the forwarder liable for the whole transit, subject to the regime's limits and its own trading conditions. Liability insurance should match that exposure, including the per-kilogram limits of the regimes involved. In the US, NVOCCs must be licensed or registered with the Federal Maritime Commission and file proof of financial responsibility. When subcontracting, ensure that recourse terms against the underlying carrier are at least as favourable as the liability accepted toward the customer.