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Parties and Terms of Engagement in Road Transport

Parties and Terms of Engagement in Road Transport

Contents to be considered in individually agreed in Road Transport Contracts 

  • Definition of the services to be covered by the contract for example the primary transportation tasks the transport company will provide.
  • Issuing of consignment note and additional transport related documents.
  • Type of truck(s) to be provided by the carrier (Fit for purpose trucks)
  • Type of cargo to be transported especially if its special cargo like Dangerous Goods should be clearly stated.
  • Number of items and the required packaging for the same should be emphasized.
  • Load units and loading devices to be provided by the carrier.
  • Time and actual provision of the truck by the carrier.
  • Loading deadlines should be emphasized.
  • The Loading regulations and responsibilities 
  • Hindrances and related measures 
  • Special Customs related instructions in case of cross-border transport
  • Prohibition or allowance of transport on open loading platforms
  • Agreement on freight costs and payments terms 
  • Special conditions in case of intermodal transport
  • Liability of all parties to the contract
  • Place of jurisdiction

Advantages of Road Transport

  • Less Capital Outlay
  • Door to Door Service:
  • Service in Rural Areas
  • Flexible Service:
  • Suitable for Short Distance
  • Lesser Risk of Damage in Transit:
  • Saving in Packing Cost
  • Rapid Speed:
  •  Less Cost
  • Private Owned Vehicles
  • Feeder to other Modes of Transport.

Disadvantages of Road Transport

  • Seasonal nature
  • Accidents and breakdowns
  • Unsuitable for long distance and bulky traffic
  • Slow speed

Learning Activities

    • You are an employee of Massajja Transporters based in Kampala with extensive domestic network and you are responsible for operations dealing with domestic road transport. You receive the following order from Battery Plus Ltd, they have a consignment of 10 drums of battery acid to be transported to their branch in Mbarara.
    • Let us assume a scenario, during the rest stop, the driver spots that one of the drums is leaking upon delivery the consignee received only 9 drums as received ok


  1. Describe all your considerations in selection of the vehicle
  2. Explain the contract sign and name the rights and duties of the parties involved 
  3. Explain the documents required to transport the consignment and which other documents needed by the truck/ the driver
  4. Explain the steps you would take regarding damages
  5. Explain the liability as well as damage compensation 


  1. Explain the relevance of the following documents in road transport;
  1. Way bill for Inland Transport
  2. Packing List
  3. Commercial invoice
  4. Delivery note
  5. Certificate of origin
  6. Explain the criteria for road transport infrastructure.
  7. Explain at Least Ten (10) key considerations for individually agreed road transport Contract