Cargo Retention Clause Meaning in Logistics

A cargo retention clause is a provision in a logistics contract that allows the carrier to hold on to the cargo until certain charges are paid.

The clause is triggered when the shipper fails to take the necessary action to clear the shipment, such as failing to provide the necessary documentation or pay the freight charges. The cargo retention clause allows the carrier to hold the cargo until the situation is resolved and the necessary charges are paid. This clause helps to ensure that the carrier is compensated for its services and helps prevent delays in cargo delivery.