Logistics and international trade depend on the collaboration of multiple actors to ensure smooth and successful operations. One of these key players is the shipper, also known as the consignor or shipper, who is responsible for initiating the transportation of goods and ensuring that shipments comply with the conditions set forth in transportation contracts.
The shipper performs critical functions, such as preparing the goods, generating key documentation and contracting carriers. In addition, their role is fundamental to ensure compliance with export and import regulations, avoiding penalties, delays or complications in operations.
In this article, we will explore in depth who the shipper is, his main responsibilities and how he differs from other important figures, such as the consignee.
Who is the Shipper?
The shipper, also known as sender or shipper, is the person or entity that initiates the process of transportation of goods. It is the person who contracts the logistics services to ship the goods from the place of origin to their final destination, complying with the conditions established in the transportation contract.
In simple terms, the shipper is responsible for ensuring that the cargo is ready to be transported and for providing all the necessary information for the logistics operation to be successful.
Role of the shipper in international logistics
The shipper is a central figure in the supply chain, as he is responsible for coordinating the first stages of transportation. His functions include:
–Providing the detailed description of the cargo, including weight, dimensions and special characteristics (such as dangerous or perishable goods).
–Contracting the appropriate mode of transportation, whether by sea, air or land, depending on the needs of the operation.
–Generate and deliver key documentation such as commercial invoice, packing list and bill of lading (B/L) or Air Waybill (AWB).
–Ensure that the goods comply with the export regulations in the country of origin and, in some cases, the regulations of the destination country.
Relationship of the shipper to the contract of carriage
The shipper is the principal signatory to the contract of carriage, which establishes the conditions under which the goods will be shipped. In this contract, the shipper has several responsibilities:
-Appoint the consignee who will receive the cargo at the destination.
-To make sure that the carrier has all the necessary information to carry out the shipment efficiently.
-Oversee that the terms of the contract are met, including delivery dates, handling conditions and insurance, if applicable.
Why is it important to identify the shipper in the documentation?
The shipper’s name appears on essential documents such as the Bill of Lading (B/L) and Air Waybill (AWB). This is important because:
-Determines who is responsible for the cargo at the point of origin.
-It facilitates customs control, since the authorities can identify the shipper of the goods.
-It allows tracking the shipment and resolving possible incidents during transport.
Functions of the shipper
The shipper plays an essential role in international trade, as he/she is in charge of the first stages of transportation and coordinates key aspects to ensure that goods reach their destination efficiently and safely. The following are the main functions of the shipper in international logistics:
Preparation of goods
Packaging and labeling: Ensure that goods are properly packaged and labeled according to international regulations and carrier specifications. This includes identifying dangerous, fragile or perishable goods.
Cargo consolidation: In cases of multiple shipments, coordinate the consolidation of goods to optimize costs and space in transport.
Transportation contracting
Selection of the mode: Decide whether the shipment will be made by sea, air or land, depending on the characteristics of the goods, delivery times and costs.
Negotiation with carriers: Contract the services of carriers or logistics agents, making sure to obtain the best conditions in terms of rates, transit time and safety.
Designation of the consignee: Indicate who will be in charge of receiving the goods at destination and managing the final delivery.
Documentation generation
Commercial Invoice and Packing List: Create these key documents, which detail the content, value and characteristics of the goods, indispensable for transportation and customs.
Bill of Lading (B/L) or Air Waybill (AWB): Issue or provide the necessary information to generate these documents, which are essential for transport management and cargo identification during transit.
Specific Certificates: Manage any additional documentation required, such as certificates of origin, phytosanitary or dangerous goods certificates, depending on the type of product and the regulations of the destination country.
Regulatory compliance
Export regulations: Verify that goods comply with country of origin regulations, including export permits or specific licenses.
International regulations: Ensure that shipments comply with international standards, such as regulations for the transport of dangerous goods (IMDG, IATA) or bilateral trade agreements.
Logistics coordination
Communication with the consignee and carrier: Maintain fluid communication to ensure that all parties involved have the necessary information and can coordinate the receipt of the goods at destination.
Shipment supervision: Monitor the progress of the shipment to identify and resolve possible incidents in real time.
Transportation insurance
Take out insurance to cover possible damages or losses during transit, protecting the value of the goods and minimizing financial risks.
Differences between shipper and consignee
Although the shipper and the consignee are essential figures in international logistics, their roles and responsibilities within the supply chain are very different.
While the shipper initiates the transportation process, the consignee manages the receipt of goods at destination.
Their key differences are discussed below:
Role definition
Shipper: This is the person or entity that ships the merchandise. Its main responsibility is to organize the transportation, prepare the cargo and generate the necessary documentation for the shipment. Consignee: The consignee designated to receive the goods at the point of destination. It may be the end customer or an agent acting on his behalf, such as a logistics operator or customs broker.
Relationship to the contract of carriage
Shipper: The principal signatory to the contract of carriage. Provides instructions to the carrier and defines the terms of the shipment, including mode of transportation, delivery dates and cargo handling conditions.
Consignee: Does not sign the contract of carriage, but is indicated on the documentation (such as the bill of lading or Air Waybill) as the legal consignee of the cargo. His role is to receive and manage the goods once they arrive at the destination.
3. Main responsibilities
Shipper:
- Prepare and pack the goods.
- Contract the transportation.
- Generate key documents such as commercial invoice, packing list and bill of lading.
- Ensure that the cargo complies with export regulations.
Consignee:
- Coordinate cargo reception at destination.
- Manage customs clearance and release of goods.
- Oversee final delivery to the customer or storage at specific facilities.
4. Relationship with documentation
Shipper: Your name appears as the shipper on documents such as the Bill of Lading (B/L) and Air Waybill (AWB). He is the one who provides the necessary information to generate these documents.
Consignee: Appears on the same documentation as the consignee of the cargo. Its function is to ensure receipt and compliance with the conditions specified in the contract of carriage.
5. Practical example
Let’s imagine a logistics operation: A company in Spain (the shipper) exports textile products to a customer in the United States. The shipper prepares the goods, generates the commercial invoice, hires a carrier and appoints a consignee in the port of New York.
The consignee, who may be the end customer or a logistics agent, is responsible for receiving the goods, coordinating customs clearance and supervising delivery to the final consignee.
Complementarity of roles
Although their roles are distinct, the shipper and the consignee must work in coordination for successful logistics operations.
The shipper ensures that the shipment is properly organized, while the consignee guarantees the receipt and proper handling of the goods at destination.
Across Logistics: Your International Logistics Partner
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With extensive experience in global logistics, we offer customized solutions that optimize costs, guarantee regulatory compliance and ensure a seamless logistics flow.
Trust Across Logistics as your strategic partner to manage the logistics of your shipments. Contact us today and tell us about your needs.
