What is a carrier's lien on goods?

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A carrier’s lien is a legal right that allows a carrier to retain possession of a consignee’s cargo until payment for transportation services is received. The nature of this right depends on the legal jurisdiction:12

  • Common-law jurisdictions: A carrier typically holds a common-law lien, which grants the right to retain possession of the goods until freight is paid, but does not inherently allow the carrier to sell or use them. However, parties may contractually agree to an "active lien," which grants the carrier the right to sell the goods to satisfy the debt. In specific contexts, such as U.S. maritime carriage, shipowners are clearly entitled to seize and sell goods for nonpayment.12
  • Civil-law jurisdictions: Carriers generally possess a "privilege" on the goods, which provides the authority to sell the cargo to satisfy claims for freight and incidental expenses. Additionally, under the general law of obligations, carriers in these systems may simply refuse to deliver the goods until payment is made.12

Once a lien is exercised, the carrier assumes the duties of a bailee, remaining responsible for the preservation of the goods.2