What does Lien Rights mean?
Lien rights refer to the legal authority of 3PLs where, if unpaid, they have the right to retain the goods transported until payment is completed. Lien can be exercised only for non-payment of the price and not for any other charges due against the customer.
When are Lien Rights used?
Lien Rights are used when the contractual terms are not met. It is contained in the warehouse’s terms and conditions or forwarder’s T&Cs. It is a security right given to the warehouse for safe and security of goods and costs.
Businesses who find goods commonly being excised for lien rights should look for common issues and mistakes with their suppliers, carriers, and other involved parties. Even if the lien rights are excised, it is important to maintain the safety and security of goods.
Explore More: Warehouse Management Software