Thursday, January 7, 2016

Difference Between Pre-Carriage and On-Carriage

The difference between pre-carriage and on-carriage needs to be understood very clearly by the

  • exporter
  • importer
  • shipping line
  • forwarder
  • clearing agent
  • insurance and
  • everyone else involved
Pre-Carriage – Any inland movement BEFORE the container is delivered to the port/terminal

On-Carriage – Any inland movement AFTER the container is picked up from the port/terminal.

In order to ensure that the relevant roles, responsibilities, costs and risks are clearly defined.
A very basic differentiation would be to explain further:

Pre-Carriage – is the term given to any inland movement that takes place prior to the container being delivered to the port/terminal.

Example: An empty container is moved to a Warehouse for packing and then moved by road to Tema port.
If the pre-carriage is performed by the shipping line on behalf of the client, it is called Carrier Haulage and in such cases, the bill of lading will show place of receipt.
If the activity is performed by the client or their transporter, it is called Merchant Haulage and in such cases, the bill of lading will not show any place of receipt.


On-Carriage – is the term given to any inland movement that takes place after the container is picked up from the port/terminal.

Example: A full container is discharged at Tema port and then moved by road to Warehouse for unpacking.
If this on-carriage is performed by the shipping line on behalf of the client, it is called Carrier Haulage and in such cases, the bill of lading will show place of delivery.
If the activity is performed by the client or their transporter, it is called Merchant Haulage and in such cases, the bill of lading will not show any place of delivery.

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