Difference between Carrier Haulage and Merchant Haulage
Although it has been covered briefly in one of my earlier posts about the Import Process, this post is an elaboration of the same..
Carrier haulage and Merchant haulage both are related to carriage of a container from Point A to Point B but the difference is in the responsibilities of this haulage..
Below is the explanation..
Carrier Haulage : Movement of the container from Point A to Point B under the control of the shipping line using a haulage contractor nominated by the shipping line..
In this case the consignee will pay for the same at the lines rate.. This also means that when a line accepts a Carrier Haulage move, they should also accept any claims or liabilities or damages that could arise during such a move, unless it can be proved that it was caused by improper packing of the cargo etc..
Such move would generally be applicable when there is a multi modal transport involved – ex cargo moving from Antwerp to final destination Sandton (shown on bill of lading) via Durban/City Deep, where Antwerp is the Port of Load, Durban is the Port of Discharge and container is railed from Durban to City Deep (rail terminal in Johannesburg) and further carried by road to Sandton door..
Merchant Haulage : Movement of the container from Point A to Point B directly by the consignee using his nominated haulage contractor..
In this case the consignee has the choice to negotiate his own rates for the same..
In this case, the line does not bear any liability for the move and if there are any damages, they can hold the merchant liable for such damages..
Comparing above delivery scenario, Merchant can arrange haulage either from Durban by road to Sandton door directly or take delivery of the container from City Deep and further move it to Sandton door by road..
Thanks for the information shared. But I have once query regarding the multimodal shipment that we are having now. We have take D.O. from line for Sharjah Port, but when we received the same, we came to know that it will be sea shipment from JNPT to Sharjah. But when it reaches as Jebel ali, then line asked for Custom clearance at Jebel Ali & then only it will move to Sharjah. So is it possible to do Custom clearance at sharjah instead of Jebel Ali ? Please advice.
Thank you Mr Hariesh for sharing your knowledge.
I have written a similar article on my blog about it but in Italian language as per my experience as ocean export specialist.
Have a nice day
Thanks Elena.. 🙂 Nice site, pity couldn’t read it fully due to translation issues..
Is it possible to have both modes of carrier and merchant haulage in a single shipment ? For example, having carrier haulage at source and merchant haulage at destination?
Hi Kushal, yes that is possible and is very common..
Dear Mr Hariesh
really i understand ur above article , but i have another scenario , if the client book the cntr from msc for example . can ask another line to move this cntr ( inland transport) , also i think all freight forworders , nvocc and movers are Merchant Haulage and shipping lines are Carrier Haulage , but can client depend on another line for inland transportation
Yang Ming uses the term “Agent Haulage”. Is it carrier or merchant? thanks in advance
Hello Valentina, if they use Agent Haulage it could mean either themselves as a shipping agent or you as a clearing agent.. As each country has its own terminology, it would be best to clarify with the line..
Very useful. Thank u.
i am new to haulage , kindly anyone explain me,how haulage will work in scm
If I track a shipment and movement says “Delivered by carrier haulage” does this mean that it’s reached it’s destination or just that the carrier picked up the container and can still be possibly awaiting delivery appointment?
Hi Anna “Delivered by Carrier Haulage” could mean that it has been delivered.. If you are checking the tracking on a shipping lines website, if you see Empty Gate In then it means that the cargo has been delivered and the container has been returned as empty.. That is proper delivery..
I have passed through this article b’coz our company also importing pre – engineered building from US.
So we have choosen Merchant Haulage Agreement for the shipment of our goods,
Thanking you providing me best knowledge engine,
Thanks & Regards,
Thank u…very helpfull
Thank you for the article, very useful.
I have one question though: If the container/container will be transported from the terminal where they were offloaded, with truck/trucks carried aut by the consignee, but without leaving the free zone (not leaving the port area) is there any reason the line to ask for a MH fee ?
Thanks in advance and best regards,