Service contract

A service contract is a long-term agreement in liner shipping under which a shipper commits a minimum cargo volume over a period and the carrier commits space at a contracted rate. In US trades the form is regulated: the Shipping Act of 1984, as amended by OSRA 1998, lets carriers and shippers file confidential service contracts with the Federal Maritime Commission, departing from published tariffs. Annual contracts on major container trades (for example transpacific eastbound) set volume tiers, rates, and service commitments such as transit time and equipment availability. The service contract is the liner counterpart to a bulk CoA.