Guaranteed Freight Law and Legal Definition

Guaranteed freight is freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier'’ control. Generally under the American rule, in the absence of a contractual modification, the parties may agree that, a shipper is not liable for freight for carriage of goods by sea until the goods have been delivered to the destination specified in the bill of lading which lays the contract of carriage between the shipper and carrier. Drew Ameroid International v. M/V Green Star, 681 F. Supp. 1056, 1059-1060 (S.D.N.Y. 1988). However, the parties may agree to put the risk of ocean voyage on the shipper by inserting a guaranteed freight clause in the bill of lading, which provides that the freight is earned upon loading of the cargo onto the vessel. Id. at 1060.