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Shipment Contract for Indonesia

Shipment Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the transportation of goods by sea. This document outlines the rights, obligations, and responsibilities of both the carrier and the shipper, incorporating requirements from Indonesian maritime law, particularly the Indonesian Commercial Code (KUHD) and Law No. 17 of 2008 on Shipping. It includes detailed provisions for cargo handling, delivery terms, liability allocation, insurance requirements, and dispute resolution mechanisms, while ensuring compliance with Indonesian customs regulations and international shipping practices.

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What is a Shipment Contract?

This Shipment Contract is essential for businesses engaging in maritime transportation of goods within Indonesian waters or international shipping operations involving Indonesian ports. The document is designed to comply with Indonesian maritime law framework, particularly the Indonesian Commercial Code (KUHD) and Law No. 17 of 2008 on Shipping, while also accounting for international shipping practices. The contract typically covers crucial aspects such as cargo specifications, delivery terms, liability allocation, and dispute resolution mechanisms. It is particularly important given Indonesia's archipelagic geography and its position as a major maritime trade hub in Southeast Asia. The Shipment Contract serves as a fundamental legal framework for protecting the interests of both carriers and shippers while ensuring smooth logistics operations and regulatory compliance.

What sections should be included in a Shipment Contract?

1. Parties: Identification of the shipper, carrier, and any other relevant parties including full legal names, registration numbers, and addresses

2. Background: Context of the shipping arrangement and the purpose of the agreement

3. Definitions: Defined terms used throughout the agreement including shipping terms, technical terms, and relevant Indonesian legal terminology

4. Scope of Services: Detailed description of the shipping services to be provided, including routes, vessel types, and frequency of services

5. Cargo Specifications: Requirements and restrictions regarding cargo type, packaging, handling, and documentation

6. Payment Terms: Freight charges, payment schedule, currency, payment method, and any additional costs or surcharges

7. Loading and Discharge: Terms and procedures for cargo loading and discharge, including time allowances and responsibilities

8. Delivery Terms: Specifications of delivery obligations using Incoterms, delivery timeline, and handling of delays

9. Documentation Requirements: List of required shipping documents, customs documentation, and certification requirements

10. Liability and Insurance: Allocation of risks, liability limitations, and insurance requirements for cargo and operations

11. Force Majeure: Circumstances exempting parties from performance obligations and related procedures

12. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

14. General Provisions: Standard legal provisions including notices, amendments, and entire agreement clause

What sections are optional to include in a Shipment Contract?

1. Dangerous Goods Handling: Special provisions for handling hazardous materials, applicable when shipping dangerous goods

2. Temperature Control: Requirements for temperature-controlled shipping, necessary for perishable goods

3. Transshipment Rights: Terms regarding cargo transshipment, relevant for complex routing arrangements

4. Container Requirements: Specific provisions for container shipping, applicable for containerized cargo

5. Custom Clearance Services: Terms for customs clearance handling, optional if parties want to include customs services

6. Equipment Supply: Terms regarding supply of shipping equipment, relevant when specific equipment is required

7. Volume Commitments: Minimum volume guarantees and related terms, applicable for long-term shipping arrangements

8. Environmental Compliance: Special environmental protection measures, relevant for environmentally sensitive cargo

What schedules should be included in a Shipment Contract?

1. Schedule A - Pricing Schedule: Detailed breakdown of all shipping rates, surcharges, and additional fees

2. Schedule B - Service Routes: Detailed description of shipping routes, ports of call, and transit times

3. Schedule C - Cargo Specifications: Technical specifications for cargo handling, packaging, and storage requirements

4. Schedule D - Performance Standards: Key performance indicators and service level requirements

5. Schedule E - Insurance Requirements: Detailed insurance specifications and coverage requirements

6. Appendix 1 - Required Documentation: Ƶ and examples of required shipping documentation

7. Appendix 2 - Operating Procedures: Detailed procedures for loading, unloading, and handling operations

8. Appendix 3 - Contact Details: List of key contacts and emergency contact information for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Service Contract

Cost

Free to use
Relevant legal definitions


















































Clauses












































Relevant Industries

Maritime & Shipping

International Trade

Logistics & Supply Chain

Manufacturing

Agriculture & Food

Oil & Gas

Mining

Retail

E-commerce

Chemical & Industrial

Automotive

Construction Materials

Relevant Teams

Legal

Supply Chain

Logistics

Operations

Procurement

Risk Management

Commercial

Compliance

Finance

Documentation

Customer Service

Port Operations

Maritime Operations

International Trade

Contract Administration

Relevant Roles

Logistics Manager

Supply Chain Director

Shipping Operations Manager

Trade Compliance Officer

Contract Administrator

Procurement Manager

Import/Export Manager

Legal Counsel

Risk Manager

Commercial Director

Operations Director

Fleet Manager

Port Operations Manager

Customs Compliance Officer

Maritime Operations Supervisor

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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