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Multimodal

On-carriage

Transport of goods from the point where the main carriage ends to the final destination.

What is On-carriage?

On-carriage is the transport leg that moves goods from the port, airport or terminal of discharge to the final place of delivery inland, for example by truck, rail or barge after an ocean voyage. It mirrors pre-carriage, the leg from the shipper's premises to the port of loading. On a bill of lading the distinction appears in the fields "port of discharge" and "place of delivery": when a place of delivery is named, the carrier has contracted for on-carriage, often called carrier haulage, while delivery arranged by the consignee or its forwarder is merchant haulage. Under Incoterms 2020, the named place in rules such as CPT, CIP, DAP, DPU and DDP determines whether the seller pays for on-carriage, while under FOB, CFR and CIF it falls to the buyer. In the US, imported cargo moved inland before customs clearance travels in-bond under 19 CFR part 18.

Why it matters for forwarders

The choice between carrier and merchant haulage affects price, control and liability: carrier haulage bundles equipment and inland transport into one rate, while merchant haulage gives the forwarder control of trucking but makes it responsible for returning empties within detention free time. US in-bond cargo must generally be delivered to the destination or export port within 30 days, and its arrival reported to CBP within two business days, so delays on the inland leg can create customs exposure as well as cost. Road weight limits may be lower than what a container can carry at sea, so heavy boxes may need special trucks or split loads. Give the on-carriage provider release status, pickup details and the last free day in good time, and make sure the place of delivery on the bill matches the actual arrangements. If the forwarder issued a through or multimodal document, it remains liable for loss on the on-carriage leg even when a subcontractor performs it.

On-carriage FAQ

What is the difference between on-carriage and pre-carriage?

Pre-carriage moves goods from the shipper's location to the main carrier's departure point, and on-carriage moves them from the main carrier's arrival point to the final destination. Both are usually performed by road, rail or barge.

Who pays for on-carriage under CIF?

Under CIF the seller pays carriage only to the named port of destination, so on-carriage beyond that port is for the buyer's account unless the sale contract says otherwise.

What is the difference between carrier haulage and merchant haulage?

Under carrier haulage the ocean carrier arranges and charges for inland transport to the place of delivery shown on its bill of lading. Under merchant haulage the consignee or its forwarder arranges the inland move itself and is responsible for returning the empty container within free time.

How long can US in-bond cargo take to reach its destination?

In-bond merchandise must generally be delivered to the port of destination or exportation within 30 days, or 60 days when moved by barge. Its arrival must be reported to CBP within two business days.

Sources

  1. Incoterms® 2020, International Chamber of Commerce
  2. 19 CFR 18.1: Carriers and in-bond procedures, Legal Information Institute, Cornell Law School

Rules and figures change. Check the current text with the issuing body before relying on it.

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