ABSTRACT
When a shipowner, or another authorized person, for example an agent, agrees to carry goods by water, or agrees to furnish a ship for the purpose of carrying goods in return for a sum of money to be paid to him, such a contract is a contract of affreightment and the sum to be paid is called freight. Shipment of the goods is usually evidenced in a document called a bill of lading. Once a ‘shipped on board’ endorsement has been added (if required), it becomes a receipt for goods shipped on the nominated vessel.
