Legal Definitions - breaking bulk

Definition: Breaking bulk refers to the act of dividing a large shipment into smaller units. It can also refer to larceny by a bailee, such as a carrier, who opens containers, removes items from them, and converts the items to personal use.

• A shipping company receives a large shipment of goods from overseas. They must break bulk and divide the shipment into smaller units to be delivered to various locations.
• A truck driver is entrusted with a shipment of electronics to be delivered to a store. Instead, the driver breaks bulk and steals some of the items to sell for personal profit.

The first example illustrates the act of breaking bulk in a legitimate and necessary way for the purpose of distribution. The second example illustrates the illegal and unethical act of breaking bulk for personal gain, which is considered larceny.