Legal Definitions - contract of affreightment

A Contract of Affreightment (COA) is a legal agreement in maritime law where one party (the carrier or shipowner) agrees to transport goods by sea for another party (the shipper or cargo owner). Essentially, it's a contract for the waterborne transportation of cargo. These agreements outline the terms and conditions of the shipment, including the type of goods, the route, the freight charges, and the responsibilities of each party. While the core agreement is the Contract of Affreightment, the specific details are often documented through instruments like a bill of lading or a charterparty. It is also sometimes referred to as a contract of carriage.

Here are some examples to illustrate a Contract of Affreightment:

• International Grain Shipment
  A large agricultural corporation in Brazil needs to ship 75,000 tons of soybeans to a buyer in China. They enter into a detailed agreement with a major shipping line to transport the grain across the Atlantic and Pacific Oceans. This agreement specifies the vessel to be used, the loading and unloading ports, the delivery schedule, and the cost per ton for the entire journey.

  Explanation: This scenario represents a Contract of Affreightment because it's a formal, legally binding agreement for the carriage of a significant quantity of goods (soybeans) by water (across multiple oceans) between two parties (the agricultural corporation and the shipping line). The terms of the shipment are clearly defined, establishing it as a COA.

• Importing Consumer Goods
  An online retail company based in Australia places a large order for various household electronics from a manufacturer in Vietnam. To get these goods from the factory to their distribution center, the retailer signs a contract with a logistics provider who, in turn, arranges for the ocean transport of several shipping containers filled with the electronics. The contract details the ports of origin and destination, the number of containers, and the agreed-upon freight rate for the sea leg of the journey.

  Explanation: This is a Contract of Affreightment because it involves an agreement for the transportation of goods (household electronics) by sea (from Vietnam to Australia). Even if the retailer primarily interacts with a logistics provider, the underlying agreement for the actual ocean carriage of the cargo falls under the definition of a COA.

• Transporting Industrial Equipment
  A specialized engineering firm is relocating a massive, custom-built industrial press from a fabrication plant in Germany to a new factory site in the United States. Due to its size and weight, the press requires a specialized heavy-lift vessel. The firm contracts with a maritime transport company that owns such vessels. The agreement specifies the unique handling requirements, the precise route across the Atlantic, and the timeline for delivery to the port closest to the new factory.

  Explanation: This situation clearly illustrates a Contract of Affreightment as it's a specific agreement for the waterborne transportation of specialized, oversized goods (the industrial press) from one country to another. The contract outlines the terms for this particular sea voyage and cargo, fitting the definition of a COA.