Most exports of goods from Australia require the services of either a seagoing transport operator or an airline for the carriage of goods to the country of destination. Even if goods are ordered over the Internet by an overseas buyer, the Australian exporter must arrange to transport the goods to the buyer by sea or air transport or by the postal service, which in turn uses sea or air transport. The contract between the exporter and the transport operator is a separate contract to the main sales contract. But the sales contract will often contain incoterms or other clauses naming the party to the contract who is responsible for arranging and paying for the transportation of the goods. The reader is referred to Chapter 3 for a detailed discussion of incoterms.

This chapter reviews some of the important aspects of sea and air transport. In each case the discussion follows the logistics of arranging transport, the important aspects of the contract of carriage and the liability of the carrier. At the outset it needs to be emphasised that the law relating to transport of goods is complex. In a chapter of this length we can only give an introduction. Those wishing to acquire a more detailed knowledge of the intricacies of international transport law should consult specialist works on transport law.

Two preliminary questions arise before an exporter or an importer enters into a contract of carriage with a transport operator.