Glossary
Bailment
Tags: Glossary
The transfer of possession of property for a specific purpose, such as storage or transportation.
What is Bailment?
1PL is a logistics method where no supply chain aspect is outsourced, and the company itself is responsible for manufacturing and delivering products to their end customers. The self-sufficient logistics service will include transportation, storage, and distribution.
This setting is most suitable for the small production companies who have only local distribution.
Bailment in shipping refers to the legal relationship that arises when one person (the “bailor”) transfers possession of personal property to another person (the “bailee”) for a specific purpose or period of time, without transferring ownership.
In the context of shipping, bailment may occur when a cargo owner entrusts their goods to a shipping company or carrier for transport, storage, or other handling. The shipping company becomes the bailee of the cargo and assumes responsibility for the safekeeping and delivery of the cargo to its destination.
Under a bailment agreement, the bailee is typically responsible for exercising reasonable care to protect and preserve the property in their possession and may be liable for any damage or loss that occurs during the bailment period. The bailor may also have certain obligations, such as disclosing any defects or hazards associated with the property.
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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.
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