Pre-Carriage, Carriage and On-Carriage explained

All of you in the industry have heard of the terms Pre-Carriage, Carriage and On-Carriage..

The difference between these terms needs to be understood very clearly by everyone involved in the shipment of a container in order to ensure that the relevant roles, responsibilities, costs and risks of the various parties are clearly defined and understood..

A simple definition of the terms Pre-Carriage, Carriage and On-Carriage would be :

• Pre-Carriage – The movement that happens BEFORE the container is loaded on the ocean going vessel
• Carriage – The movement that happens while the container is ON BOARD the ship
• On-Carriage – The movement that happens AFTER the container is discharged from the ocean going vessel

To explain further :

Pre-Carriage – is the term given to the movement that takes place prior to the container being loaded at a port of loading on to an ocean going vessel.. Such activity can take place at the same location as the port of loading, or at a location close to the port of loading..

Example : Empty container is released in Johannesburg and moved to Pretoria for packing and then moved by road or rail to Durban port..

This activity is known as PRE-CARRIAGE..

If the activity is performed by the shipping line on behalf of the client, that movement is called Carrier Haulage..

In this case, the bill of lading will show Place of Receipt as Pretoria indicating that the carrier took over the cargo at the place of receipt (to be remembered when using FCA Incoterms Rules)..

In a Carrier’s haulage, this activity can be performed by the carrier using rail, road, or inland waterways transport..

If the activity is performed by the client or their transporter, that is called Merchant Haulage.. This activity can be performed using rail, or road transport..

 

Carriage – is the term given to the movement of the cargo by sea from the port of load to the port of discharge.. Example : When the container is moved from Durban to say Hamburg by sea.. This activity is known as CARRIAGE..

This activity can be performed only by the shipping line/vessel operator who is undertaking to carry the cargo from point A to point B and the bill of lading issued by the ship owner/shipping line is the evidence of the contract of such carriage..

On-Carriage – is the term given to any movement that takes place after the container is discharged at a port of discharge from the ocean going vessel..

Such activity can take place at the same location as the port of discharge, or at a location close to the port of discharge..

Example : Full container is discharged at Durban and then moved by rail to Johannesburg City Deep terminal and then further moved by road to Sasolburg for unpacking..

This activity is known as ON-CARRIAGE..

If the activity is performed by the shipping line on behalf of the client, that movement is called Carrier Haulage..

In this case, the bill of lading will show Place of Delivery as Sasolburg..

In a Carrier’s haulage, this activity can be performed by the carrier using rail, road, or inland waterways transport..

If the activity is performed by the client or their transporter, that is called Merchant Haulage.. This activity can be performed using rail, or road transport..

 

Conclusion

Just yesterday I received a query from a reader seeking assistance about some “destination charges” which their freight forwarder was charging them without any explanation..

The client was of the understanding that these destination charges were covered as part of the on-carriage charges which was already paid by them..

Customers must be VERY CAREFUL and understand the differences with these two terms Pre-Carriage and On-Carriage, who pays for what in a shipment, what are the modes of haulage and understand the costs and activities covered under these two terms when it is done on Carrier Haulage..

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