A warehouse lien is a legal right that allows a warehouse operator to retain possession of goods stored in their facility until all due charges—such as storage fees, handling, transport, or other service costs—are paid by the customer.
This lien provides a layer of financial protection for warehouse operators, ensuring they are not left unpaid for services rendered on behalf of clients who may default or become insolvent.
Relevance to Cold Chain and General Warehousing
For operators in the refrigerated sector, liens become especially critical when dealing with high-value, time-sensitive, or perishable goods.
If charges go unpaid, warehouses need legal clarity to act quickly and appropriately—whether that means retaining goods, registering a security interest under the Personal Property Securities Act (PPSA), or, as a last resort, selling goods to recoup losses. Understanding and implementing lien rights effectively helps maintain healthy cash flow and protects warehouse businesses from operational risk.
Where and When Liens Matter
Warehouse liens are particularly important when negotiating storage agreements, managing long-term stock, or servicing customers who are new, undergoing restructuring, or displaying financial instability. Including lien terms in service contracts and understanding your rights under state legislation or the PPSA ensures your operation is prepared to act decisively. The RWTA encourages all members to review their lien policies and remain informed on best practices for protecting their services and infrastructure.
Disclaimer
The information provided by the Refrigerated Warehouse and Transport Association of Australia Ltd (RWTA) in relation to liens and warehousing matters has been prepared with input from legal professionals. However, RWTA does not warrant or guarantee the accuracy, completeness, or suitability of this information for your individual circumstances.
RWTA expressly disclaims any and all liability for any loss, damage, or consequence that may arise from reliance on the information provided. All recipients are strongly advised to undertake their own due diligence, conduct independent research, and seek advice from qualified legal practitioners before making decisions based on this material.
Use of this information is at your own risk, and it does not constitute legal advice or establish any legal relationship with RWTA.
