Supply Chain Glossary

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Service Contract


Source: Supply Chain & Logistics Glossary
Author: VV.AA.
Institute: Georgia Tech - The Supply Chain and Logistics Institute

Courtesy of


 

As provided in the Shipping Act of 1984, a contract between a shipper (or a shippers association) and an ocean common carrier (or conference) in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier or conference commits to a certain rate or rate schedule as well as a defined service level (such as assured space, transit time, port rotation or similar service features). The contract may also specify provisions in the event of nonperformance on the part of either party.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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