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When may a carrier sell goods to collect unpaid freight charges?

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Mosaic portrait of Emperor Justinian I with a jeweled crown and halo, from the 6th-century Basilica of San Vitale in Ravenna, Italy.
Carriage of goods Justinian I, detail of a 6th-century mosaic at the Church of San Vitale, Ravenna, Italy.

The right of a carrier to sell goods to collect unpaid freight charges depends on the legal jurisdiction and the specific terms of the agreement:

  • Common-Law Jurisdictions: Under standard common law, a carrier has a lien that allows them to retain possession of the goods until freight is paid, but they are not entitled to sell or use them. However, the parties may explicitly agree to an "active lien," which grants the carrier the right to sell the goods to satisfy the debt. In specific contexts, such as maritime carriage in the United States, the shipowner is clearly entitled to seize and sell goods for nonpayment of freight.12

  • Civil-Law Jurisdictions: Carriers typically possess a legal privilege on the goods carried, which inherently confers the power and authority to sell those goods to satisfy claims for freight and incidental expenses. This privilege is generally available to professional carriers and is extinguished once the goods are delivered to the consignee.12