In international trade, documentation is key to ensure that shipments comply with all regulations and reach their destination safely and smoothly. Among these documents, the consignment note plays an essential role, as it acts as a contract of carriage and guarantees the safety of the goods during transport.
Knowing the types of consignment note, their functions and their correct management can make a difference in the efficiency of a company’s logistics operations.
In this article, we will explore what the consignment note is, how it is used in international transportation and the benefits of managing it properly.
What is a consignment note?
The consignment note is an essential document in the transportation of goods, acting as a contract between the shipper, the carrier and, in some cases, the consignee.
This document specifies the conditions of carriage and describes the goods, the origin and destination, as well as details of the responsibilities of each of the parties involved.
In essence, the consignment note serves as proof of receipt of the cargo and an agreement on the terms under which the goods will be moved.
It is used in various modes of transportation, including land, sea, air and rail, and is critical in the customs brokerage where accurate documentation is required to comply with local and international regulations.
As international trade involves multiple jurisdictions and regulations, the consignment note becomes a legal document that protects each party and supports the traceability of goods, facilitating a secure and transparent flow in the supply chain.
Types of consignment note
There are several types of consignment note, each adapted to a specific mode of transport and to the regulations of each sector. Below, we describe the most common ones and their application in international trade:
CMR (Convention on Carriage of Goods by Road) consignment notes
This type of consignment note is specific to the carriage of goods by road in countries that have signed the CMR Convention. It is essential in international land logistics, as it regulates the responsibilities and rights of the shipper, carrier and consignee, and provides a legal framework for resolving disputes in the event of damage or loss of goods.
ADR consignment note
Intended for the transport of dangerous goods, the ADR consignment note complies with the European Agreement concerning the International Carriage of Dangerous Goods by Road. This type of consignment note establishes special requirements to ensure the safe handling, loading and unloading of dangerous substances, including specifications for their packaging and marking.
CIM consignment note (International Convention for the Carriage of Goods by Rail)
Used in rail transport, the CIM consignment note regulates the transit of goods by train between different countries. This document facilitates compliance with international rail regulations and ensures the traceability and safety of goods in transit.
Air and sea consignment notes
For air and sea transport, there are specific versions of the consignment note that comply with international regulations in each of these modes. The air consignment note (Air Waybill) and the maritime (Bill of Lading) are essential documents for export and import, and specify the terms of carriage, the description of the goods and the responsibilities of each party.
Electronic and digital consignment note
Digital transformation has also reached logistics, giving rise to the electronic consignment note. This digital format makes it possible to manage documentation more efficiently, reduce the use of paper and improve the traceability of goods in real time. It is increasingly used in international trade, providing fast and secure access to shipment information.
Each type of consignment note fulfills a specific function and facilitates compliance with regulations depending on the mode of transport and the nature of the goods. Knowing which one to use in each situation is key to ensuring efficient and safe logistics management in international trade.
What is a consignment note used for?
The consignment note has multiple functions in the logistics and international trade process, becoming a key document for the safe and efficient transportation of goods. Below, we detail its main uses and benefits:
Contract of carriage
The consignment note acts as a legal contract between the shipper, the carrier and the consignee, setting out the terms and conditions of carriage. This includes details on the type of goods, the place of pickup and delivery, and any special instructions for the shipment.
Proof of receipt and delivery
By issuing a consignment note, the carrier certifies receipt of the cargo under the specified conditions. In turn, the document serves as proof of delivery when the goods arrive at the consignee, which is essential for tracking compliance with each stage of the logistics process.
Facilitation of customs compliance
In international trade, each country imposes specific regulations and requirements for the entry and exit of goods. The consignment note allows customs authorities to verify the details of the shipment, thus facilitating regulatory compliance and speeding up the customs clearance process.
Legal certainty and protection against claims
The consignment note establishes the rights and responsibilities of each party in the transportation process, which is essential in case of damage, loss or delay in delivery. By detailing the conditions and characteristics of the shipment, this document protects those involved and allows for claims or lawsuits in case of non-compliance.
Traceability and transparency
In a global supply chain, traceability is crucial to maintain effective control of goods in transit. The consignment note allows detailed tracking of each stage of transport, providing transparency and security to all parties involved.
In conclusion, the consignment note is not only a mandatory document in most international shipments, but it also fulfills critical functions for the management, security and legality of the transportation of goods.
Who issues the consignment note and who needs it?
The issuance of the consignment note involves several key players in the transportation process, each with specific responsibilities to ensure compliance with the terms and safety of the goods. Below, we explain who are the key players responsible for its issuance and who rely on this document for their operations.
The carrier
In most cases, it is the carrier that issues the consignment note, once it has received detailed instructions from the shipper and the cargo is ready to be transported. This document functions as a formal contract between the carrier and the shipper, defining the terms of carriage and ensuring that the goods will be transported in accordance with the specified conditions.
The sender or shipper
Although the carrier issues the consignment note, it is the sender (or shipper) who provides all the necessary information about the shipment, including contents, weight, value and conditions of carriage. It is critical that the shipper provides accurate data to ensure that the document accurately reflects the conditions of the shipment and avoids legal or customs compliance issues.
The addressee
Although not directly involved in the issuance of the consignment note, the consignee is an interested party, since possession of this document allows for the collection of the goods upon arrival. The consignment note also sets out the terms of delivery, providing the consignee with the assurance that the goods will arrive in the agreed condition.
Customs authorities and international trade agents
To comply with legal and customs requirements for international shipments, customs authorities and international trade agents require access to the consignment note to verify the content, origin and destination of the goods. This document facilitates customs management and clearance, ensuring compliance with regulations in each country.
In short, the consignment note is an essential document for all actors in the supply chain, from the shipper to the consignee, including the carrier and customs authorities. Each of these players plays an important role in its issuance and use, allowing goods to be transported transparently and in compliance with international regulations.
How to fill out a consignment note
Filling out a consignment note correctly is crucial to ensure that the shipment of goods goes smoothly and complies with all customs and transport regulations. Here is a step-by-step guide on how to complete this document, highlighting the essential fields and the data that must be included for each type of transport:
1. Sender’s and recipient’s data
It includes the name, address, and contact details of both the sender (the person or company sending the goods) and the recipient (the person or company receiving the goods). This data allows the identification of the parties and is essential for tracking and delivery.
2. Description of the goods
Provide a detailed description of the goods, including the type of products, weight, dimensions and any special characteristics to be considered in handling. For hazardous cargo, it is important to detail the ADR classification, including hazard labels.
3. Conditions of transport
This section specifies the conditions under which the cargo will be transported, such as the type of transport (road, sea, air or rail), as well as special instructions for handling and storage if necessary. In the case of perishable or fragile goods, any temperature, handling or delivery time requirements should be specified.
4. Details of the cargo and its packaging
Describes the type and number of packaging units, such as boxes, pallets or containers. Specifying the type of packaging helps carriers adequately prepare for the handling and protection of goods during transit.
5. Value of goods and insurance
Indicate the value of the goods and the type of insurance covering the shipment. This detail is important for coverage purposes in case of loss, damage or delay. The declared value facilitates the calculation of customs duties and insurance processing in case of incidents.
6. Signature and date of issue
Both the shipper and the carrier must sign the consignment note to validate the transport contract. Including the date of issue ensures the traceability of the document and helps coordinate pick-up and delivery times.
7. Additional information (when necessary)
In some cases, the consignment note may require additional information, such as payment terms or specific delivery terms (e.g., C.O.D., CIF terms, etc.). CIF o FOB in ocean freight). Including these details helps to avoid misunderstandings between the parties.
By completing each section accurately, companies can avoid delays and problems at customs, ensuring efficient and compliant transportation. A properly completed consignment note not only simplifies the logistics process, but also ensures that goods reach their final destination safely and smoothly.
Differences between consignment note and CMR
Although the consignment note and the CMR consignment note may appear similar, as they both regulate the carriage of goods, there are key differences between these documents that affect their application and use in international trade. Below, we explain the most important differences:
Scope of application
The consignment note is a general term that can be applied to any means of transport: air, sea, rail and road. On the other hand, the CMR consignment note is specifically regulated by the CMR Convention, an international treaty covering the carriage of goods by road between countries that have signed this agreement. Thus, the CMR is exclusive to international land transport and is not applicable to other modes of transport.
Legal basis and regulation
The CMR consignment note is governed by the Convention on the Contract for the International Carriage of Goods by Road (CMR), which establishes a uniform framework of rights and obligations for international land transport. In contrast, the generic consignment note does not follow a single international regulation, as each mode (air, sea, etc.) may be subject to specific regulations and different international treaties.
Content and structure of the document:
Although both documents include essential data such as shipper, consignee, and commodity description information, the CMR consignment note has a standardized format and specific requirements defined by the CMR Convention.
This includes terms on the carrier’s liability and procedures in case of damage or loss of goods. The generic consignment note, on the other hand, may vary in format and content depending on the type of transport and the regulations of the country or region.
Responsibilities and rights:
In the CMR consignment note, the responsibilities and rights of the parties are clearly defined by the convention, which provides a framework of international protection for both the shipper and the carrier. In contrast, in a generic consignment note, these responsibilities may vary and depend on the specific terms agreed between the parties and the applicable regulations at the place of origin and destination of the transport.
Relevance in international disputes:
The CMR is a key document in the resolution of international land transport disputes, since, being regulated by an international treaty, it facilitates the protection of the rights of the parties and unifies the legal procedures between the signatory countries. The consignment note, however, can be subject to multiple regulations and does not always offer the same protection in international disputes, as it depends on the treaties and regulations applicable to the specific type of transport.
Across Logistics: Your ideal partner for international logistics management
In the competitive world of international trade, having a trusted and experienced logistics partner is key to optimizing processes, reducing risks and ensuring efficiency at every stage of the supply chain. Across Logistics specializes in providing comprehensive logistics solutions, including the management of consignment note and other essential documents for the transportation of goods.
At Across Logistics, we understand that international trade and logistics require expertise and careful planning. When you choose us as your logistics partner, you get a trusted partner who takes care of every detail, from documentation to transportation, ensuring that your goods arrive at their destination in the best condition and in the shortest possible time. Trust Across Logistics to take your business to the next level in global trade.
