Shipper, Consignee and Notify Party: Definitions and Differences

Quick Overview

The shipper is the party that provides the goods for transportation and is named as the sender on the shipping document. The consignee is the party designated to receive the cargo at destination. The notify party is the person or company the carrier contacts when the shipment arrives.

These roles may be assigned to three different parties, or the consignee and notify party may be the same company. Their names and contact details must be entered correctly on the Bill of Lading to prevent documentation, customs-clearance and cargo-release delays.

What Is the Difference Between a Shipper, Consignee and Notify Party?

The three terms identify different functions. Being listed as the notify party does not automatically make that party the cargo owner, consignee or Importer of Record.

What Is a Shipper?

The shipper is the party named as the sender of the cargo on the transport document.

Depending on the transaction and type of Bill of Lading, the shipper may be:

• The exporter
• The seller
• The manufacturer
• A trading company
• A freight forwarder
• A non-vessel-operating common carrier
• The cargo owner

The shipper normally provides the carrier or freight forwarder with the shipping instructions used to prepare the Bill of Lading.

What Is the Shipper Responsible For?

Depending on the sales agreement and Incoterm, the shipper may be responsible for:

• Preparing and packing the goods
• Providing an accurate cargo description
• Confirming the number and type of packages
• Providing cargo weight and volume
• Declaring dangerous goods
• Supplying export documentation
• Completing or supporting export clearance
• Providing shipper, consignee and notify-party details
• Meeting carrier documentation cutoffs
• Delivering the cargo to the agreed location

The shipper must ensure that the information submitted to the carrier matches the commercial invoice, packing list and other shipment documents.

Is the Shipper Always the Exporter?

Not necessarily.

The exporter and shipper are often the same company, but the names may differ depending on the contractual structure and transport document.

For example, a freight forwarder may appear as the shipper on a Master Bill of Lading, while the manufacturer or seller appears as the shipper on a House Bill of Lading.

What Is a Consignee?

The consignee is the person or company designated to receive the cargo at the destination.

The consignee is listed in the consignee field of the Bill of Lading, sea waybill or air waybill.

The consignee may be:

• The buyer
• The cargo owner
• A distributor
• A manufacturer receiving components
• A warehouse
• A bank
• A freight forwarder
• Another authorized party

The consignee is frequently the buyer or importer, but these roles are not automatically identical.

What Is the Consignee Responsible For?

Depending on the shipment agreement, the consignee may be responsible for:

• Receiving the arrival notice
• Providing documents for cargo release
• Coordinating customs clearance
• Paying destination charges
• Paying duties and import taxes
• Arranging port or terminal collection
• Organizing inland delivery
• Receiving the cargo at the final destination
• Returning the empty container on time

The exact responsibilities depend on the Incoterm, transport contract, customs rules and commercial agreement between the seller and buyer.

Is the Consignee the Owner of the Goods?

Not always.

The consignee is the party designated to receive the shipment, but ownership may depend on:

• The sales contract
• Payment terms
• The type of Bill of Lading
• Endorsement of a negotiable Bill of Lading
• Transfer-of-title provisions
• The applicable law

A shipping line transports the cargo according to the transport document but does not determine when commercial ownership transfers between the seller and buyer.

Is the Consignee the Importer of Record?

The consignee and Importer of Record may be the same company, but they are separate roles.

The Importer of Record is responsible for:

• Customs classification
• Customs valuation
• Payment of duties and fees
• Product compliance
• Filing or authorizing the customs entry
• Maintaining required import records

A warehouse, freight forwarder or logistics provider may be listed as a consignee or delivery party without qualifying as the Importer of Record.

Review the customs clearance and duties guide before assigning import responsibilities.

What Is a Notify Party?

The notify party is the person or company the carrier or its destination agent contacts when the shipment arrives.

The arrival notice may include information about:

• Vessel arrival
• Cargo availability
• Destination charges
• Required documents
• Customs status
• Terminal location
• Free time
• Container collection
• Delivery-order procedures

The notify party is commonly:

• The consignee
• The buyer
• A customs broker
• A freight forwarder
• A destination agent
• A warehouse
• Another logistics contact

What Is the Notify Party Responsible For?

The notify party’s main function is to receive shipment-arrival communications.

Depending on its separate commercial appointment, it may also:

• Inform the consignee
• Coordinate with the customs broker
• Arrange customs-clearance documents
• Pay destination charges
• Book truck collection
• Coordinate warehouse delivery
• Monitor free time

However, being named as the notify party does not by itself create responsibility for customs clearance, payment or cargo collection.

Those responsibilities must be established separately through the sales agreement, power of attorney, brokerage agreement or transport instructions.

Can the Consignee and Notify Party Be the Same?

Yes. This is common when the consignee directly manages customs clearance and delivery.

The notify-party field may state “same as consignee” when permitted by the carrier.

A separate notify party is useful when another company must receive the arrival notice, such as a freight forwarder or customs broker.

Can There Be More Than One Notify Party?

Some carriers and document systems allow a second notify party.

For example:

• Notify party 1: the buyer
• Notify party 2: the customs broker or freight forwarder

Carrier requirements should be checked before submitting the shipping instructions.

Shipper, Consignee and Notify Party Example

Assume a Spanish machinery manufacturer sells equipment to a U.S. distributor. A U.S. customs broker handles clearance.

In this example:

• The manufacturer supplies the goods and shipping information.
• The distributor is designated to receive the machinery.
• The broker receives the arrival notice and coordinates customs clearance under a separate authorization.

The customs broker does not become the cargo owner merely because it is listed as the notify party.

How the Parties Appear on a Bill of Lading

The Bill of Lading normally contains separate fields for:

• Shipper
• Consignee
• Notify party
• Carrier
• Vessel and voyage
• Port of loading
• Port of discharge
• Place of delivery
• Cargo description
• Package count
• Weight and volume

Complete names, addresses and contact information should be provided according to the carrier’s requirements.

Missing or inconsistent party details can cause:

• Bill of Lading amendments
• Manifest corrections
• Customs holds
• Arrival-notice failures
• Cargo-release delays
• Storage charges
• Demurrage or detention
• Delivery delays

Straight, Order and Bearer Bills of Lading

The consignee field can be completed differently depending on the type of Bill of Lading.

Straight Bill of Lading

A straight Bill of Lading names a specific consignee.

It is generally non-negotiable, and the carrier releases the cargo according to its document and identity-verification procedures.

Order Bill of Lading

An order Bill of Lading may show wording such as:

• To order
• To order of shipper
• To order of a named bank

The document can be transferred through endorsement, subject to the applicable terms and legal requirements.

Order Bills of Lading are commonly used when banks or documentary payment arrangements are involved.

Bearer Bill of Lading

A bearer Bill of Lading does not name a specific consignee and may allow rights under the document to transfer through physical possession.

Bearer documents carry substantial commercial and security risks and are less common in routine container shipping.

Master and House Bills of Lading

A shipment handled by a freight forwarder may have both a Master Bill of Lading and a House Bill of Lading.

Master Bill of Lading

The ocean carrier issues the Master Bill of Lading to the freight forwarder or non-vessel-operating common carrier.

The parties may appear as:

House Bill of Lading

The freight forwarder issues the House Bill of Lading to its customer.

The parties may appear as:

The names on the Master and House Bills can therefore be different without necessarily indicating an error.

Shipper Versus Seller

The seller is the party selling the goods under the commercial contract.

The shipper is the party named as the sender under the transport contract.

They are often the same company, but may differ when:

• A manufacturer ships on behalf of a trading company.
• A freight forwarder issues a House Bill.
• Goods are shipped from a third-party warehouse.
• The seller is located in a different country from the cargo.
• A group company manages transportation.

Consignee Versus Buyer

The buyer purchases the goods under the sales contract.

The consignee is designated to receive the shipment under the transport document.

They may differ when:

• The cargo is delivered directly to a customer.
• A bank is named in an order Bill of Lading.
• A distributor receives goods for another company.
• A warehouse is the physical delivery location.
• A freight forwarder is named on the Master Bill.

Consignee Versus Notify Party

Common Documentation Mistakes

Listing the Customs Broker as Consignee Without Checking

A customs broker may need to appear as the notify party rather than the consignee.

The correct structure depends on the Bill of Lading, customs arrangement and broker authorization.

Assuming the Notify Party Controls the Cargo

The notify party receives communications but does not automatically have title to or control over the goods.

Using Incomplete Contact Details

Provide complete information where required:

• Legal company name
• Full address
• Country
• Contact name
• Telephone number
• Email address
• Tax or registration number when required

Confusing the Consignee With the Delivery Address

The consignee is a legal or commercial party. The final delivery location may be a separate warehouse or fulfillment center.

Using Different Names Across Documents

The commercial invoice, packing list, Bill of Lading and customs documents should use consistent legal names and addresses.

Submitting Changes After Manifest Filing

Changes to the shipper, consignee or notify party after documentation or manifest cutoffs may require carrier approval and amendment fees.

Submit accurate shipping instructions before the carrier deadline.

How to Complete the Party Details Correctly

Before submitting the shipping instructions:

1. Confirm the legal shipper name.
2. Identify the party authorized to receive the cargo.
3. Confirm whether the Bill of Lading is straight or negotiable.
4. Identify who should receive the arrival notice.
5. Confirm the Importer of Record separately.
6. Verify the customs broker’s role and authorization.
7. Check carrier and destination-country requirements.
8. Use consistent names across all documents.
9. Confirm telephone and email details.
10. Review the draft Bill of Lading before issuance.

Corrections should be requested before the carrier submits the final manifest whenever possible.