What is Consignee?
The consignee is the party to whom the goods are to be delivered under the contract of carriage, named as such on the bill of lading, sea waybill, air waybill or rail consignment note. Under a negotiable order bill of lading the consignee field may read 'to order' or 'to order of' a bank or shipper, and the party entitled to delivery is whoever holds the duly endorsed original. Under a straight bill, a sea waybill or an air waybill, the named consignee is entitled to delivery without needing an original document. The consignee is often, but not always, the buyer: it may be a bank, a forwarder's destination agent on a master document, or a third party nominated by the buyer. The notify party, by contrast, is only the party to be told of arrival and has no right to the goods by virtue of that role.
Why it matters for forwarders
Getting the consignee right at booking matters because changing it after issue may require amending or reissuing documents and, under a negotiable bill, the cooperation of the holder. Customs declarations, advance security filings and arrival notices draw on the consignee data, so inconsistencies between house and master documents or customs filings can lead to holds. Under the Montreal Convention, once cargo arrives the consignee may require the carrier to deliver it on payment of charges and compliance with the conditions of carriage. In the US the FMC's demurrage and detention billing rule limits invoices to the party for whose account transport was provided or the consignee, defined as the ultimate recipient of the cargo. Where goods are sold under a letter of credit, the consignee field must follow the credit wording exactly, typically 'to order' of the issuing bank.