The terms ‘shipper,’ ‘consignee,’ and ‘notify party’ are commonly misunderstood or confused with one another. In today’s tutorial, we have clarified the differences between a shipper, consignee, and notify party, outlining their respective roles in international shipping.
What is a shipper in logistics?
In a contract of carriage, the shipper typically assumes responsibility for instigating the transportation of goods. They are the entity or individual contracting with carriers or freight forwarders for shipping the goods.
For instance, manufacturers, exporters, or suppliers often fulfill the role of a shipper by dispatching their products to retail distributors or buyers. They arrange the packaging, labeling, and necessary documentation for the goods.
The shipper liaises with freight carriers to secure containers for transport, choosing the most suitable mode of transportation. Moreover, they execute contracts with carriers under preferred Incoterms and monitor the logistics process.
However, in specific scenarios, the buyer can also function as the shipper, particularly when initiating shipment from the seller’s origin, under trade terms like Ex-Works (EXW) or Free on Board (FOB).
Who is a consignee in shipping?
The consignee on the bill of lading is the intended recipient or the party designated to receive the goods upon shipment arrival. Typically, the consignee aligns with the ultimate receiver of the goods.
Their responsibilities include verifying that the shipment matches the description in the accompanying documentation. Furthermore, inspecting for any damages or discrepancies and formally acknowledging the receipt of the goods.
In many commercial transactions, the consignee is the purchaser or buyer of the goods. However, the consignee can also be a third party designated by the purchaser or receiver to accept the goods on their behalf.
This designation may occur for various reasons, such as the consignee being a logistics provider, a customs broker, or an authorized agent entrusted to receive the goods.
Who is the notify party in shipping?
The notify party, designated in the bill of lading, is the contact person to receive notifications upon the cargo’s arrival at the destination port.
The identity of the notifying party can vary and may include the buyer, consignee, shipping agent, or any involved party associated with this shipment.
Unlike the shipper and consignee, the notifying party might not have a direct financial interest in the cargo but plays a crucial role in staying informed about the shipment’s progress.
Assigning a notify party is typically mandatory only if it differs from the consignee.
Moreover, while multiple notify parties may exist, there is usually one primary notify party responsible for informing all other concerned parties when the goods arrive.
Case study for shipper, consignee, and notify party
To acquaint you well with the roles of the shipper, consignee, and notify party, let’s explore a real-world example:
CN Electronics, a manufacturer of high-end electronic devices in China, intends to export a new product line to ABC Retailers in the USA. They have partnered with Airsupply as their freight forwarder to manage the shipment.
In this scenario, CN Electronics acts as a shipper, responsible for preparing the goods that comply with shipping regulations in the USA. They also communicate instructions and provide the essential documentation for the goods movement.
Conversely, ABC Retailers assume the role of the consignee. They inspect the shipment and ensure compliance with their order. Additionally, ABC Retailers might need to handle customs clearance if required.
Airsupply, as an intermediary party, provides updates on the shipment’s status to CN Electronics and ABC Retailers.
Their responsibilities include booking and organizing cargo shipments, maintaining consistent communication throughout the shipping process, and resolving logistics issues.
Moreover, Airsupply notifies parties involved of any changes in delivery schedules or additional document requirements. They are also capable of handling customs procedures as needed.
Now that you’re familiar with these three prime roles in shipping, it’s time to kickstart your international shipping journey!
When partnering with Airsupply, you can trust us to cater not only to your shipping needs but also to ensure compliance with legal requirements.
We provide comprehensive logistics solutions tailored to your various shipments, including DDP shipping, LCL freight, intermodal transport, and more.
As directly integrated with multiple airlines and sea companies, we guarantee competitive prices for you!
Is the shipper the same as the consignor?
In the realm of shipping, both “shipper” and “consignor” refer to the party accountable for sending or initiating the transportation of goods.
Yet, though these terms are often used interchangeably, subtle differences might exist based on regional practices or industry norms:
Shipper: Predominantly used within the transportation sector, especially in global logistics and trade.
Consignor: “Consignor” may find more prevalent usage within legal or contractual contexts.
Can the shipper vs consignee be the same party?
In certain circumstances, the shipper and consignee can be the same, especially when the same party initiates the shipment and receives the goods at the final destination.
Imagine a scenario where a small business owner sells handmade crafts. The business owner acts as the shipper, preparing and sending the crafts from their workshop to their branch store in another city.
Upon the crafts’ arrival at the branch store, the same business takes on the role of the consignee. They receive the shipment at their store, inspect its contents, and assume possession of the crafts for display and sale.
Another instance where the shipper and the consignee may coincide is when an individual visits the United States, makes purchases within the country, and intends to ship these goods to their address in a foreign country.
The shipper, strictly speaking, is the contracting party named on shipping documents like the bill of lading, whereas the consignee is the recipient of the cargo.
In the above cases, the shipper and the consignee are identical, representing the same entity or individual involved in sending and receiving the goods.
