Get unlimited access to the best of MySeaTime for less than ₹100/week. Become a member

Members only

Shipper, consignee and Notify party, explained.

115

shipper-consignee-notify-party

There is sometimes great confusion as to the actual identity of shipper, consignee and notify party. Here I explain these terms which are widely used in shipping specially in the bill of ladings.

Shipper: Who is this guy ??

Many believe “Shipper” is the supplier or owner of the goods being supplied. It is true but not always.  The business directory defines shipper as  the party responsible for the shipment. When a buyer of goods enters into a contract with seller of the goods through sale contract, apart from other things they also decide who would arrange for the transport. In the multi-modal transport, they may decide which leg of transport is under whom. Who bears what risk is also the basis of various INCOTERMS defined by the International Chamber of Commerce.

If the buyer of the goods is responsible for sea transport, he would arrange for a ship to carry the goods and enter into a “Contract of carriage” with the carrier. The buyer here would be “Shipper” under “Contract of carriage”.

Shipper is a term related to “Contract of carriage” but is also closely related to sale contract. So the Shipper bears two hats. He is shipper under “contract of carriage” but he is buyer (or seller) under sale contract.

Consignee: Consignee is the person to whom the carrier (Ship) is supposed to deliver the goods. In most cases the consignee is the Buyer of the goods but not always. Consignee could be the agent nominated by the buyer. Consignee could also be the buyer’s bank.

Another principle different between the terms “Consignee” and “buyer” is that while “Consignee” is the term used in “contract of carriage”, the term “buyer” is used in “sale contract”.

Join now to access this article and much more.

Admin has placed this article behind a paywall, making it accessible only with a paid membership, which offers numerous perks:

  • Contribute to creating a platform for reading and writing without ads.
  • Enjoy all content here, including exclusive articles for members.
  • Gain access to all exclusive articles for members.

More like this

In blog, Ship Safety & Security

10 Simple Terms to Understand Ship Construction Better

A seafarer may not be involved in the ship construction so much. But that does not mean that they need not…

In blog, Marine Engineering, Ship Navigation

GMDSS Batteries: Tests and checks mariners must know

GMDSS batteries provide power to GMDSS equipments in case ship’s main as well as emergency power fail. The requirement of…

In blog, Cargo Operation

A Guide to Tank Cleaning From Vegetable Oil to Methanol

There is no single fail-proof method to get your tanks cleaned to methanol standard after Vegetable oil. Sorry!!! I wish…

In blog, Marine Conventions

Simplifying SCOPIC clause and salvage convention

Salvage mean “rescue a wrecked or disabled ship or its cargo from loss at sea”. The party rescuing is called…

In blog, Ship Navigation

20 Navtex Question (and answers) to Make Naxtex Your Friend For Life

Do you struggle to sort out navtex warnings ? If yes, you are not alone. Many believe that Navtex is not…

In blog, Cargo Operation, Shipping Business

A Ship on Time Charter : Here is All a Seafarer need to know

Most of the seafarers consider shipping business as a difficult subject. Not that it is so much difficult. But because…