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.