Short answer. Yes. The Civil Code grants a carrier a preferred credit on the goods it transported, covering the price of the contract and incidental expenses — until their delivery and for thirty days thereafter. This preferred claim exists by operation of law while the goods are in your possession and for thirty days after you deliver them.
What the law says
Credits for transportation, upon the goods carried, for the price of the contract and incidental expenses, until their delivery and for thirty days thereafter
Civil Code, Article 2241 — Preferred Credits on Specific Movables. Read the full provision →
What the preferred credit covers
Article 2241(9) of the Civil Code grants carriers a preferred credit on the specific goods they transported. The preference covers two things: the price of the contract (the freight charge agreed upon) and incidental expenses incurred in the course of transportation. This might include port fees, storage charges during transit, or other costs directly connected to carrying the goods. The preference attaches to the goods themselves — meaning if the client defaults and creditors compete, the carrier's transportation claim ranks ahead of general unsecured creditors of the client with respect to those specific goods.
The thirty-day window after delivery
The preferred credit does not evaporate the moment the carrier delivers the goods. Article 2241(9) extends the preference to thirty days after delivery. This is a grace period that recognizes a practical reality: freight invoices are often payable after delivery, and requiring the carrier to retain possession of goods to preserve its preference would be commercially unworkable. For thirty days after the goods leave the carrier's hands, the carrier still holds a preferred claim against those goods — which means it can assert priority over them if the client becomes insolvent during that period.
Recovery of wrongfully taken goods
Article 2241 adds a protective rule at the end: if the movable property to which the preference attaches is wrongfully taken, the creditor may demand it back from any possessor within thirty days from the unlawful seizure. For a carrier, this means that if the goods are taken from the carrier's possession without authorization during the thirty-day post-delivery preference period, the carrier may pursue recovery from whoever holds them. This is a limited but real right of retrieval tied to the window within which the preference is alive.
Practical steps to protect your freight claim
While the preferred credit arises by law, enforcing it requires action within the applicable window. If your client has not paid freight and you have already delivered the goods, the thirty-day clock is running. Document the delivery date, the freight amount, and any incidental costs. If the client is insolvent or in proceedings, file your claim promptly as a preferred creditor against those specific goods. If you still hold the goods, you may also be able to exercise a lien — retaining possession until paid — as a separate and complementary remedy. Do not wait past the thirty days without acting.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Strategic Alliance Development Corporation vs. Radstock Securities Limited and Philippine National Construction corporation, G.R. No. 178158 / G.R. No. 180428, December 4, 2009 — read the decision on LawPhil →
- Manuel D. Yngson, Jr., (in his capacity as the Liquidator of ARCAM & Co., Inc.) vs. Philippine National Bank, G.R. No. 171132, August 15, 2012 — read the decision on LawPhil →
- Jan-Dec Construction Corporation vs. Court of Appeals, et al, G.R. No. 146818, February 6, 2006 — read the decision on LawPhil →
- Abundio Barayoga, et al. vs. Asset Privatization Trust, G.R. No. 160073, October 24, 2005 — read the decision on LawPhil →