contract for carriage of goods by water, “freight” being the price paid for the service of carriage. Such contracts are of immense importance to the world economy, forming the legal structure of the arterial traffic of the oceans.

Essentially, such a contract is an agreement between two parties, the carrier and the shipper. The carrier undertakes to carry the goods to a specified destination, and the shipper to pay the freight. There are two basic forms: the charter party, engaging the whole capacity of the ship for a single voyage or for a period of time, and the bill of lading (lading, bill of), which is a receipt for goods taken on board for carriage. See also charter party; lading, bill of.