Transport order: what should we know about the transport order?
A transport order is one of the most important documents regulating the terms of cooperation between the client and the carrier. What is it, what should it contain, and when is a contract considered concluded? Our Legal experts at Trans.eu answer questions about transport orders:
1. What is a transport order?
A transport order is simply a transport contract, a summary of the terms of cooperation between the client and the carrier. Depending on the loading or unloading locations, it may be a domestic, international, or cabotage transport contract.
2. What should a transport order include?
It specifies the essential provisions of the contract, i.e., the scope and subject of the contract, the deadline for its completion, and the amount of remuneration. Applying this to the transport context, the minimum content that a transport order should contain is:
- loading and unloading location,
- loading and unloading dates,
- type of cargo,
- freight amount,
- payment deadline.
Additional provisions, such as the type of structure, additional requirements for loading or securing the goods, payment terms, and contractual penalties, are crucial to the execution of the transport order, but their absence does not mean that a contract has not been concluded.
3. Is a transport order mandatory for every transaction?
There is no legal requirement to issue a document called a transport order. It is one possible form of transport agreement, which can also be concluded verbally, in a conversation on a freight exchange messenger, or via text message. All that's required is that all the necessary elements of the transport agreement be agreed upon and accepted by both parties. So much for the theory. However, experience shows that it's worthwhile to have a transport order. In the event of irregularities on the part of either party, it's safe to have a "document" confirming the terms of cooperation. The manner in which the agreement was concluded is therefore not without significance – in the absence of a "trace" or proof of the agreement, it is very difficult to pursue legal claims.
To be clear, a transport order may, but does not have to, be a printout or a signed "original," as there is no requirement for a transport agreement to be in writing. This means that the familiar and widely used traditional, mutually signed order (or a scan of it) will have the same validity as solutions increasingly used in the industry: sending the terms of the transport order in the body of an email, sending the order as an attachment (e.g., .doc, .pdf, .jpg) to a message or via messenger, generating the order in a system (e.g., TMS) and sending it to the recipient. The other party can also accept such a transport order in any form (e.g., confirming it in the system, sending an email with the text "I confirm").
4. Who should issue a transport order? Who does it protect?
A goods transport order is valid for both parties to the transaction, but it is typically issued and sent by the ordering party. Therefore, in practice, the provisions of a transport order are often less favorable to the carrier than to the ordering party.
5. What should a carrier pay attention to when concluding a transport order?
First, the carrier should be sure to review the transport order before accepting it. Some companies include so many contractual penalties and additional restrictions that the carrier will only receive a partial payment or none at all after the transport service is completed. Commonly used contractual penalties include non-compete clauses, prohibitions on subcontracting, penalties for late document submission, or delayed loading or unloading.
Sometimes, transport orders contain penalties that are illegal, making pursuing claims straightforward, while others are simply unethical. However, the carrier is not obligated to agree to the proposed terms, but should do so before accepting them.
It's also worth checking the terms for withdrawal from the contract. If the transport order does not specify these, in the event of its cancellation, both parties may seek compensation under general principles.
In practice, however, we increasingly encounter regulations governing "order cancellation" in a way that is unfortunately unfavorable to the carrier, for example, by stipulating that the client can cancel the order free of charge X hours before loading. In such a case, the carrier loses even this right to compensation, and the actual costs (travel, driver's time) have been incurred.
6. How can the carrier protect itself in such a situation?
It's common knowledge that obtaining a transport order is a goal in itself, because it's work, and in a competitive market environment, time is of the essence. That's why, under pressure and heavy workloads, those accepting transport orders often fail to verify their content. It's worth doing so, however, if only to eliminate dangerous clauses. Even if a given transport order contains provisions that aren't entirely satisfactory, you can reply with something like "I accept, but subject to point X." This roughly translates to "I will carry out the order, but I do not accept point X." In the event of a later dispute, you can invoke this stipulation.
Trans.eu – the safest source of transport orders
There are many ways to acquire business partners in the transport industry. Online forums and the internet, while relatively easy to connect with potential clients, aren't the best solution. This is due to the inherent risk involved. When partnering with random companies online, there's no guarantee they'll actually fulfill their obligations. A transport order provides excellent security, but it's important to remember that it only serves as a basis for pursuing claims. Proving your case often requires taking the dispute to court or even seeking legal assistance, which incurs additional costs.
To avoid this, it's worth seeking business partners in a trusted place like the Trans.eu platform. Every member of our exchange undergoes thorough verification upon account creation, minimizing the risk of transactions. User ratings, which can be reviewed before accepting a transport order, also contribute to security. Not to mention the QuickPay feature, which addresses the problem of deferred payments in the industry. It allows the carrier to receive payment for transport in just 30 minutes.
Trans.eu is a place where you can complete your transport order quickly, conveniently, and most importantly, with maximum security. Explore our offer and register today!
