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Logistics Services Agreement for Warehousing and Storage

Warehousing and Storage · NAICS 493 · Logistics Services Agreement

A Logistics Services Agreement (LSA) is a critical contract between a warehouse/logistics provider and a client who needs storage, handling, and distribution services. Unlike a simple storage lease, an LSA covers the full scope of operations: receiving, put-away, order fulfillment, inventory management, and value-added services. This agreement allocates risk for loss or damage, sets performance standards, and defines fees. For warehousing and storage businesses, a well-drafted LSA prevents disputes over shrinkage, damaged goods, and unpaid invoices. It also addresses regulatory issues such as hazmat storage and warehouse liens. Use this tool to create a customized draft that reflects your specific services and protects your business.

When you need this document

A manufacturer wants to outsource finished-goods storage and order fulfillment to a third-party warehouse.
A distributor needs cross-docking services to consolidate shipments from multiple vendors.
An e-commerce company seeks a partner for pick-and-pack and returns processing.
A logistics provider is onboarding a new client and needs to formalize rates, liability, and service levels.
A warehouse handles hazardous materials and requires a contract that mandates compliance with 49 CFR.
A client requests value-added services such as kitting, labeling, or quality inspections.

What the generated draft includes

Detailed scope of services with performance metrics
Fee schedule and payment terms
Loss and damage liability provisions
Insurance requirements and indemnification
Warehouse lien and enforcement rights
Hazmat compliance clause (if applicable)
Term, termination, and dispute resolution
Signature blocks

Frequently asked questions

What is the difference between a warehouse lease and a logistics services agreement?

A warehouse lease simply rents space. A logistics services agreement covers the full range of services the provider will perform, such as receiving, storing, picking, packing, and shipping. It also sets performance standards, fees, and liability terms, making it essential for any third-party logistics relationship.

How do I limit my liability for goods that are damaged or lost in my warehouse?

The agreement should include a limitation of liability clause that caps your liability at a specific dollar amount per occurrence (e.g., $100,000). You should also require the client to insure their goods for full replacement value and include a waiver of subrogation. This ensures that the client's insurer covers most losses, and you are not treated as an insurer.

What is a warehouse lien and why is it important?

A warehouse lien is a legal right to hold and eventually sell a customer's goods to recover unpaid storage and handling fees. It is governed by state law (e.g., California Commercial Code § 7210). Including a warehouse lien clause in your agreement gives you a powerful remedy if a client fails to pay, but you must follow strict notice and sale procedures.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.