Title vs risk — two different moments
Ownership (title) and risk are distinct, and they can pass at different times.
- Risk passes per your Incoterm — see Risk & Cargo Insurance.
- Title passes per the sale contract and, critically, can be controlled by the transport document.
- A negotiable Bill of Lading is a document of title — whoever lawfully holds the original B/L controls the goods. This is what lets goods be sold or financed while still at sea.
Bailment — possession without ownership
When a carrier or warehouse holds your goods, they are a bailee: they take possession but not ownership. With that comes a legal duty to take reasonable care of the goods and to deliver them up to the right party. Bailment is the legal foundation of every storage and carriage relationship.
Carrier & forwarder liens — when goods can be held
A lien is a right to retain possession of goods until a debt is paid. It is the mechanism behind 'cargo held hostage' disputes, so it pays to understand it:
- Carriers and warehouses generally have a lien for unpaid charges relating to those goods (a 'particular' lien) — and under warehouse/carrier law may retain goods for transport, storage and preservation costs.
- Freight forwarders typically have no general lien by default — they usually rely on a contractual lien written into their standard trading conditions, which may extend to a 'general' lien covering all sums owed.
- This is exactly why the terms of trading you sign matter: they decide whether, and how widely, your provider can hold your cargo.
Practical point: always read the standard trading conditions. A broad general-lien clause means a dispute over one invoice could see an unrelated shipment held. Clear terms up front prevent this.
Liability for loss & damage
Where a carrier loses or damages goods, statutory regimes (such as the Carmack Amendment in US interstate carriage, or the international conventions covering sea, air and road) govern and often limit liability — and can pre-empt ordinary contract or negligence claims. Recovering full value almost always depends on cargo insurance, not the carrier's liability.
How Boabab helps
We operate on clear, fair trading terms, make sure the correct title documents are issued for your trade, and structure shipments so your goods aren't exposed to surprise liens. Where a dispute needs legal expertise, we connect you with specialist trade lawyers in our network.
Note. This page is general information, not legal, tax, or financial advice. Rules vary by country and change over time — we help you apply the right ones to your specific shipment, and connect you with specialists where needed.