Carrier

Quick Answer

Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.flexport.com/glossary/carrier

Category

Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

When a shipper hands over goods, legal responsibility shifts to the carrier: the party that concludes the contract of carriage and bears liability for the cargo from collection through to delivery at destination. The carrier is liable for loss, damage, or delay unless specific contractual exclusions, force majeure, or statutory limitations apply. Shipping lines, airlines, rail operators, and road hauliers all qualify as carriers – what matters is contractual accountability for the physical movement, not the mode of transport. This distinguishes the carrier from the freight forwarder, who arranges transport on a client's behalf without typically assuming carriage liability. Applicable limits of liability vary by mode: the CMR governs international road transport, the Hague-Visby Rules apply to sea freight, and the Montreal Convention covers air cargo.

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