Freight Agreement (Pakistan)
FREIGHT AGREEMENT
Governed by the Contract Act 1872 (Pakistan)
This Freight Agreement is entered into on [Agreement Date] between:
SHIPPER:
[Shipper Name] | NTN/CNIC: [Shipper NTN]
Address: [Shipper Address]
CARRIER:
[Carrier Name] | NTN/CNIC: [Carrier NTN]
Address: [Carrier Address]
1. CARGO DETAILS
Description: [Cargo Description]
Total Weight: [Cargo Weight]
Declared Value: [Cargo Value]
Mode of Transport: [Mode Of Transport]
Dangerous Goods: [Dangerous Goods]
2. ROUTE AND TIMELINE
Origin / Pickup: [Origin Point]
Destination / Delivery: [Destination Point]
Pickup / Loading Date: [Pickup Date]
Delivery Deadline: [Delivery Deadline]
3. FREIGHT RATE AND PAYMENT
Freight Rate: [Freight Rate]
Total Freight Amount: [Total Freight Amount]
Payment Terms: [Payment Terms]
Additional Charges: [Additional Charges]
4. LIABILITY AND INSURANCE
4.1 The Carrier shall be liable for loss or damage to the cargo caused by the Carrier's negligence, subject to the liability limits agreed between the parties or, for international sea freight, the Carriage of Goods by Sea Act 1925 (Hague Rules).
4.2 The Shipper shall arrange all-risks cargo insurance for the declared cargo value of [Cargo Value] covering transit from [Origin Point] to [Destination Point].
4.3 The Carrier shall maintain valid commercial vehicle insurance under the Motor Vehicles Ordinance 1965 (for road freight) or the applicable regulatory requirement for other modes.
5. FORCE MAJEURE AND CUSTOMS
5.1 Neither party shall be liable for delay or failure to perform caused by events beyond their reasonable control — including floods, earthquakes, civil unrest, government restrictions, or border closures.
5.2 The Shipper is responsible for obtaining all import/export licences, customs clearance documents, and NOCs required by Pakistan Customs (Federal Board of Revenue) through the WeBOC system under the Customs Act 1969, unless otherwise agreed in writing.
6. EXECUTION
SHIPPER: [Shipper Name]
Authorised Signatory: _________________________ Date: _________________________
CARRIER: [Carrier Name]
Authorised Signatory: _________________________ Date: _________________________
Shipper Authorised Signatory
________________
Signature
Carrier Authorised Signatory
________________
Signature
What Is a Freight Agreement (Pakistan)?
A Freight Agreement in Pakistan sets out the mutual obligations the parties accept and the terms that govern their dealings.
Pakistan's freight industry operates under a combination of general contract law and mode-specific statutes. Road freight — the dominant mode for domestic cargo movement — is governed by the Contract Act 1872 and provincial motor vehicle regulations under the Motor Vehicles Ordinance 1965 and its successor legislation. Railway freight is governed by the Pakistan Railways Act 1911 administered by Pakistan Railways, a federal government-owned enterprise. Maritime freight is regulated by the Merchant Shipping Ordinance 2001 administered by the Pakistan Maritime Security Agency (PMSA), and the Carriage of Goods by Sea Act 1925 (applying the Hague Rules) governs bills of lading issued for international sea shipments through the Port of Karachi — managed by the Karachi Port Trust (KPT) — and Port Qasim Authority (PQA). Air freight is governed by the Civil Aviation Authority (CAA) regulations implementing the Chicago Convention, the Warsaw Convention (still applicable for some domestic routes), and the Montreal Convention 1999 for international air carriage.
The road freight sector in Pakistan is served by thousands of transporters ranging from individual truck owners to large logistics companies such as TCS, Leopards Courier, Pakistan Customs Bonded Carrier (PCBC)-licensed operators, and multinational freight forwarders. The All Pakistan Road Transport Owners Association (APRTOA) and the All Pakistan Motor Transport Owners Federation (APMTOF) represent the industry. Container freight from Karachi and Port Qasim is transported inland via the National Highway Authority (NHA)-managed motorway network — the M-9 (Karachi-Hyderabad), M-2 (Lahore-Islamabad), M-4 (Lahore-Multan), and the China-Pakistan Economic Corridor (CPEC) route via the Karakoram Highway — as well as by Pakistan Railways' freight services.
For international freight, Pakistan Customs administers clearance procedures through the WeBOC (Web Based One Customs) system under the Customs Act 1969 and the Customs Rules 2001. The Federal Board of Revenue (FBR) and the Pakistan Customs Tariff are the primary instruments governing import and export duties, and freight agreements for international shipments must align with the customs documentation requirements — Bill of Lading, Airway Bill, packing list, commercial invoice, and certificate of origin as required by the destination country.
The Freight Agreement (Pakistan) at forms-legal.com is designed for road, sea, and air freight arrangements and can be adapted for both domestic and international cargo movements, reflecting the Contract Act 1872 framework and relevant mode-specific liability regimes applicable in Pakistani commercial practice.
The legal framework governing the Freight Agreement (Pakistan) in Pakistan draws on several key statutes and regulatory bodies. Under the Companies Act 2017, the Securities and Exchange Commission of Pakistan (SECP) maintains the register of Pakistani companies. Section 16 of the Companies Act 2017 governs company incorporation. The Contract Act 1872 governs general contractual obligations. The Federal Board of Revenue (FBR) administers corporate tax under the Income Tax Ordinance 2001. The High Courts (Lahore, Sindh, Peshawar, Balochistan, Islamabad) have original and appellate jurisdiction. Parties executing a Freight Agreement (Pakistan) in Pakistan should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Contract Act 1872 sets the foundational requirements.
When Do You Need a Freight Agreement (Pakistan)?
A Freight Agreement in Pakistan is required in all commercial cargo transportation situations where the terms of carriage need to be documented and legally binding.
A Freight Agreement is needed when a manufacturer or exporter in Lahore, Karachi, Faisalabad, Sialkot, or other industrial cities contracts with a freight forwarder or road transporter to move finished goods to a destination port (Karachi, Port Qasim) for export. The agreement specifies the cargo description, weight, volume, pickup date, delivery deadline, and freight rate, protecting both parties if cargo is delayed, lost, or damaged.
A Freight Agreement is required when an importer arranges inland transportation of goods cleared through Pakistan Customs at Karachi or Port Qasim to an upcountry destination — Lahore, Islamabad, Peshawar, Quetta, or Gwadar. The agreement with the road transporter or Pakistan Railways documents the containerised or loose cargo details, transit time, and liability for damage during inland movement.
A Freight Agreement is needed when a trading company contracts with a freight forwarder to arrange sea freight from China, the UAE, or Europe to Karachi. The freight forwarder's agreement covers booking of ocean freight, issuance of the House Bill of Lading, customs clearance coordination, and delivery to the importer's warehouse — a multimodal arrangement combining sea and road freight.
A Freight Agreement is required when a pharmaceutical, food, or perishable goods company contracts with a reefer (refrigerated) transport operator to move temperature-sensitive cargo between cities. The agreement must specify temperature requirements, monitoring obligations, and enhanced liability for temperature excursion damage.
A Freight Agreement is needed when a company engaged in China-Pakistan Economic Corridor (CPEC) logistics contracts with a carrier to move goods along the CPEC route — from Gwadar Port through Balochistan, KPK, and Punjab to the Chinese border at Khunjerab Pass. CPEC freight agreements may involve multiple carriers operating in different provinces and require careful coordination of transit permits and liability allocation.
A Freight Agreement is required when an air freight shipper contracts with a cargo airline or IATA-licensed air freight agent to transport high-value, time-sensitive, or perishable goods through Karachi (Jinnah International), Lahore (Allama Iqbal International), Islamabad International, or Peshawar (Bacha Khan International) airports.
What to Include in Your Freight Agreement (Pakistan)
A valid Freight Agreement in Pakistan under the Contract Act 1872 and applicable carriage-specific statutes must contain the following essential elements.
Party Identification: Full legal names, National Tax Numbers (NTN) from the Federal Board of Revenue (FBR), company registration numbers with the SECP (for corporate parties), registered addresses, and contact details of the shipper and the carrier. For freight forwarders acting as intermediaries, their IATA accreditation number (for air freight) or Pakistan Customs Bonded Carrier (PCBC) licence number (for inland container transport) should be referenced.
Cargo Description: Detailed description of the goods — commodity name, HS (Harmonised System) code under the Pakistan Customs Tariff, total weight (gross and net in metric tons or kilograms), volume (cubic metres or cubic feet), number of packages/units, and packaging type (cartons, pallets, bulk, containerised — FCL Full Container Load or LCL Less than Container Load). Dangerous goods (hazardous cargo) must be identified by UN hazardous materials code and comply with IMDG (International Maritime Dangerous Goods Code) or IATA DGR (Dangerous Goods Regulations) as applicable.
Route and Transit Details: Origin point (factory, warehouse, or port of loading), destination point (port of discharge, customs station, or final delivery address), agreed transit route and any transhipment points, estimated transit time, and the latest acceptable delivery date. For international shipments, the port of loading and port of discharge, vessel/airline name, and voyage/flight number (once confirmed) should be referenced.
Freight Rate and Payment: The agreed freight rate — per metric ton, per cubic metre, per container (20-foot or 40-foot), per kilogram for air freight, or as a lump sum for a specific shipment — stated in PKR or, for international freight, in USD or the agreed foreign currency subject to SBP foreign exchange compliance. Payment terms: advance payment, payment on delivery, or payment within a specified number of days after delivery, with penalties for late payment. Any additional charges — fuel surcharge, port handling, customs clearance fees, terminal handling charges (THC), or detention and demurrage — must be itemised.
Liability and Insurance: The carrier's liability for loss or damage to the cargo, expressed as a monetary limit per kilogram, per package, or as a percentage of the cargo value. For sea freight, the Hague-Visby Rules or the Carriage of Goods by Sea Act 1925 liability limits apply. For air freight, the Montreal Convention 1999 limits apply (approximately 19 SDR per kilogram). For road freight, liability is governed by the Contract Act 1872 and the agreed contractual limit. The shipper's obligation to obtain all-risk marine/cargo insurance or to declare the cargo value for the carrier to arrange cover; the carrier's obligation to maintain commercial vehicle insurance under the Motor Vehicles Ordinance 1965.
Customs and Documentation Obligations: Allocation of responsibility for customs clearance — whether the shipper or the carrier (or a third-party customs agent) is responsible for filing the Goods Declaration (GD) through WeBOC, paying customs duties, and obtaining any import or export permits required by the Ministry of Commerce, DRAP, or other regulatory authorities. The documents required: commercial invoice, packing list, Bill of Lading or Airway Bill, certificate of origin, phytosanitary certificate (for agricultural goods), and any import licence.
Force Majeure and Exceptions: Events excusing the carrier from performance — floods along the Indus River affecting road transport in Sindh and KPK, strikes, civil unrest, armed conflict in border areas, government-imposed lockdowns, or border closures at Torkham, Wagah, or Chaman. The force majeure clause must specify notification requirements and the parties' rights to cancel if the delay exceeds a specified period.
Forms-legal.com provides this Freight Agreement (Pakistan) template as a practical starting point for road, sea, and air cargo arrangements in the Pakistani market. High-value, hazardous, or cross-border CPEC freight movements should be reviewed by a commercial lawyer with experience in Pakistani transportation and customs law.
Under the Companies Act 2017, the Securities and Exchange Commission of Pakistan (SECP) maintains the register of Pakistani companies. Section 16 of the Companies Act 2017 governs company incorporation. The Contract Act 1872 governs general contractual obligations. The Federal Board of Revenue (FBR) administers corporate tax under the Income Tax Ordinance 2001. The High Courts (Lahore, Sindh, Peshawar, Balochistan, Islamabad) have original and appellate jurisdiction.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Freight Agreement (Pakistan) (Pakistan) [Legal document template]. Forms Legal. https://forms-legal.com/pakistan/business/shipping/freight-agreement-pakistan
"Freight Agreement (Pakistan) (Pakistan)." Forms Legal, 2026, https://forms-legal.com/pakistan/business/shipping/freight-agreement-pakistan.
@misc{formslegal-freight-agreement-pakistan,
author = {{Forms Legal}},
title = {Freight Agreement (Pakistan) (Pakistan)},
year = {2026},
howpublished = {\url{https://forms-legal.com/pakistan/business/shipping/freight-agreement-pakistan}},
note = {Free legal document template}
}
Frequently Asked Questions
Road freight in Pakistan is governed by a combination of general contract law under the Contract Act 1872 and transport-specific regulations at the federal and provincial levels. The Motor Vehicles Ordinance 1965 (and its provincial successors — the Punjab Motor Vehicles Ordinance 2000, the Sindh Motor Vehicles Act 2019, and equivalent KPK and Balochistan legislation) regulates the registration, licensing, fitness, and insurance of commercial vehicles used in road freight. The National Highway Authority Act 1991 governs the motorway and national highway network used for long-distance freight. There is no comprehensive Road Carriage Act in Pakistan equivalent to the UK's Carriage of Goods by Road Act 1965 (implementing CMR) or India's Carriage by Road Act 2007 — meaning carrier liability for road freight in Pakistan is determined primarily by the contractual terms of the freight agreement and the general law of bailment under the Contract Act 1872 (Sections 148-171). The Pakistan Customs Bonded Carrier (PCBC) licensing scheme administered by the Federal Board of Revenue (FBR) and the All Pakistan Motor Transport Owners Federation (APMTOF) are the key industry bodies. Provincial transport departments issue route permits for commercial vehicles. Overloading — a significant problem on Pakistani roads — is regulated by the National Highway Authority and traffic police under the Motor Vehicles Ordinance weight restrictions.
FCL (Full Container Load) and LCL (Less than Container Load) are the two primary container shipping modes used through Pakistan's main seaports — the Port of Karachi (managed by the Karachi Port Trust — KPT) and Port Muhammad Bin Qasim (managed by Port Qasim Authority — PQA). FCL means the shipper books an entire container — typically a 20-foot (TEU) or 40-foot (FEU) container — for their exclusive use. FCL is cost-effective for large shipments that fill or nearly fill a standard container, and the cargo moves as a single consolidated unit from the shipper's factory or warehouse to the consignee's premises. The shipper is responsible for stuffing (loading) the container, and customs examination (if required) is conducted at the shipper's or consignee's facility under a sealed container regime. LCL means the shipper's cargo occupies only part of a container, which is shared with other shippers' goods. A freight forwarder (or consolidator) at the port of loading aggregates multiple LCL consignments into a single FCL container for ocean shipment. At the destination port, the consolidator's de-consolidation agent unpacks (unstuffs) the container and distributes individual consignments to their respective consignees. LCL is cost-effective for smaller shipments but takes longer due to consolidation and de-consolidation handling at the Container Freight Station (CFS). Major CFS operators at Karachi include Multiline Logistics, Pakistan International Container Terminal (PICT), and Qasim International Container Terminal (QICT).
Detention and demurrage are two distinct but related charges that arise when containers or cargo are not returned or cleared within the free time allowed by the shipping line or port authority. Demurrage is the charge imposed by the shipping line when a container remains at the port (inside the terminal) beyond the free time — typically five to seven days at Karachi Port Trust (KPT) and Port Qasim Authority (PQA) terminals for import containers. Demurrage rates escalate progressively: a 20-foot container might attract USD 10-30 per day in the first slab rising to USD 50-100 per day in subsequent slabs. Detention is the charge imposed when the container has been taken out of the port by the importer but not returned to the shipping line's empty container depot within the allowed free time. Detention rates are similar to demurrage rates. To avoid these charges in Pakistani freight: clear customs promptly using the WeBOC system to submit the Goods Declaration (GD) well before vessel arrival; ensure all import documents — Commercial Invoice, Bill of Lading, Packing List, Certificate of Origin — are received from the overseas supplier before the vessel arrives at Karachi; obtain the Delivery Order (DO) from the shipping agent promptly after customs clearance; and coordinate inland transportation to pick up the container and return the empty container to the designated depot within the free time.
Freight shipments in Pakistan should be covered by cargo insurance (also called marine insurance or goods-in-transit insurance) to protect against loss or damage during transportation. The primary insurance options are: All-Risks Coverage — the broadest policy under the Institute Cargo Clauses (A) covering all risks of physical loss or damage to the insured cargo during transit, subject to standard exclusions (war, strikes, inherent vice, willful misconduct). Institute Cargo Clauses (B) and (C) provide narrower coverage for specified perils. Marine cargo insurance in Pakistan is provided by state-owned insurers — State Life Insurance Corporation (SLIC) for life, and Adamjee Insurance, EFU General Insurance, Jubilee General Insurance, and the New Jubilee Insurance Company for cargo — under policies regulated by the Securities and Exchange Commission of Pakistan (SECP) under the Insurance Ordinance 2000. For road freight within Pakistan, goods-in-transit insurance policies issued by Pakistani general insurers cover loss or damage to goods during inland transport by road or rail. The insurance amount should be the CIF (Cost, Insurance, Freight) value of the goods plus 10% to cover anticipated profit. The Freight Agreement should specify whether the shipper or the carrier is responsible for arranging insurance, and the carrier's own liability — limited under the Contract Act 1872 to the value proven to be lost due to the carrier's negligence — should be clearly distinguished from the cargo insurance coverage.
The China-Pakistan Economic Corridor (CPEC) — a USD 62 billion infrastructure and investment programme under the China-BRI (Belt and Road Initiative) framework — has significantly transformed Pakistan's freight and logistics landscape. CPEC's infrastructure investments include the upgrade of the Karakoram Highway (KKH) from Rawalpindi to the Chinese border at Khunjerab Pass, the expansion of Gwadar Port (operated by China Overseas Ports Holding Company — COPHC under a concession from the Gwadar Port Authority — GPA), the construction of new Special Economic Zones (SEZs) at Gwadar, Rashakai (KPK), Allama Iqbal Industrial City (Faisalabad), and other locations, and the ML-1 railway upgrade from Karachi to Peshawar. For freight agreements involving CPEC routes, key considerations include: Transit permissions — goods transiting through Pakistan under CPEC or the Afghan Transit Trade Agreement (ATTA) require Afghan Transit Trade Goods Declaration (ATTGD) filed with Pakistan Customs through WeBOC. Multi-jurisdiction liability — CPEC freight from Gwadar to the Chinese border passes through multiple provinces with different provincial transport regulations; the Freight Agreement should address jurisdiction and liability allocation for each leg. Gwadar Free Zone — goods handled through the Gwadar Free Zone operated by COPHC enjoy specific customs duty exemptions under the Gwadar Port Authority Act 1992 and subsequent amendments, affecting the cost and documentation structure of freight agreements for CPEC-related cargo.
Customs clearance of freight at Pakistani ports — primarily Karachi (KPT), Port Qasim (PQA), and Gwadar (GPA), as well as inland customs stations like Lahore Dry Port and Peshawar Dry Port — requires a specific set of documents filed through the WeBOC (Web Based One Customs) system administered by the Federal Board of Revenue (FBR) under the Customs Act 1969. Required documents include: Goods Declaration (GD) — the primary customs filing document submitted electronically through WeBOC by the licensed Customs Clearing Agent (CCA) on behalf of the importer or exporter; Commercial Invoice showing the value, currency, quantity, and description of goods; Bill of Lading (sea freight), Airway Bill (air freight), or Railway Receipt (rail freight) issued by the carrier; Packing List itemising the contents of each package; Certificate of Origin issued by the Chamber of Commerce in the exporting country (required for preferential duty rates under Pakistan's FTAs with China, Malaysia, Sri Lanka, and other countries); Import licence or NOC from relevant ministries (Ministry of Commerce for certain restricted items, DRAP for pharmaceuticals, Ministry of National Food Security for food products); Pre-Shipment Inspection (PSI) certificate where required by the Ministry of Commerce for specific goods categories; and, for specific goods, additional certificates such as phytosanitary certificate (agricultural goods), fumigation certificate, or halal certificate.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Bill of Lading (Pakistan)
A Bill of Lading for Pakistan — a document of title and receipt issued by a carrier acknowledging shipment of goods, governed by the Carriage of Goods by Sea Act 1925, applicable to cargo shipped through Karachi Port, Port Qasim, and Gwadar Port under maritime trade regulations.
Cargo Insurance Claim (Pakistan)
A Cargo Insurance Claim form for Pakistan — a formal claim submitted to an insurance company for loss, damage, or short-delivery of insured goods in transit, governed by the Insurance Ordinance 2000, the Marine Insurance Act 1906, and SECP Insurance Rules.
Transport Agreement (Pakistan)
A Transport Agreement for Pakistan — a contract between a goods owner or shipper and a transport contractor or carrier for the movement of goods by road within or across Pakistan, governed by the Contract Act 1872, the Carriage of Goods by Road Act 2012, and National Highway Authority regulations.
Warehouse Storage Agreement (Pakistan)
A Warehouse Storage Agreement for Pakistan — a contract between a warehouse operator and a depositor for the storage of goods, governed by the Contract Act 1872, defining storage charges, liability, and conditions for release of goods.