Tools › Industries › Transportation and Warehousing › Transportation Services Agreement

Water Transportation Services Agreement (Tug & Barge, Charter, Freight)

Water Transportation · NAICS 483 · Transportation Services Agreement

A Water Transportation Services Agreement is a critical contract between a vessel operator (carrier) and a cargo owner (shipper) for the movement of goods by water—whether by inland tug and barge, coastal vessel, or Great Lakes freighter. This agreement defines the scope of service, vessel and cargo specifics, ports, laytime, demurrage, and liability terms. In the US water transportation industry, contracts must address unique legal frameworks like COGSA and the Harter Act, and practical issues such as weather delays and port congestion. This template is tailored to water carriers and shippers to help avoid disputes and ensure smooth operations.

When you need this document

When a shipper needs to move bulk cargo (e.g., grain, coal, chemicals) on an inland barge or coastal vessel.
When a carrier provides tug and barge services for a specific voyage or time period.
When a company charters a vessel for a single cargo movement and needs a simple service agreement.
When a shipper and carrier want to formalize a long-term transportation arrangement with defined rates and terms.
When transporting hazardous materials by water, requiring clear documentation and liability allocation.

What the generated draft includes

Identification of carrier and shipper, vessel description, and service type.
Cargo description with weight, volume, and any special handling requirements.
Route details: origin and destination ports, including terminal or dock.
Laytime and demurrage provisions with clear calculation methods.
Liability and indemnity clauses referencing COGSA, Harter Act, and inland rules.
Insurance requirements, governing law, and force majeure provisions.

Frequently asked questions

What is the difference between a Bill of Lading and a Transportation Services Agreement?

A Bill of Lading is a receipt and evidence of the contract of carriage, while a Transportation Services Agreement is the underlying contract that sets the full terms between the shipper and carrier. The Bill of Lading often incorporates the terms of the agreement by reference.

Do I need to reference COGSA or the Harter Act in my agreement?

Yes, for US water transportation, it's important to specify which liability regime applies. COGSA applies to ocean carriage, while the Harter Act covers domestic water carriage. Inland barge movements may be subject to the Pomerene Act or other rules. Your agreement should clearly state which law governs to avoid ambiguity.

What is laytime and demurrage?

Laytime is the allowed time for loading and unloading cargo at the port. If the vessel is delayed beyond that time, the shipper pays demurrage, a daily fee that compensates the carrier for the vessel's idle time. This agreement includes fields to set these terms.

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.