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General

Shipper

The party that sends the goods, usually the seller or exporter, named as shipper on the transport document.

What is Shipper?

The shipper is the party that contracts with a carrier for the carriage of goods or tenders the goods for carriage, and is named as shipper on the bill of lading, sea waybill or air waybill. In US ocean law, 46 U.S.C. 40102 defines a shipper as a cargo owner, the person for whose account the ocean transportation is provided, the person to whom delivery is to be made, a shippers' association, or an NVOCC that accepts responsibility for payment of all tariff or service contract charges. That last element means an NVOCC is a shipper toward the ocean carrier while acting as a carrier toward its own customers. Air law conventions use the term consignor for the same role. The shipper on the transport document is not necessarily the seller or the exporter of record, which matters for customs and export control filings.

Why it matters for forwarders

Most carriage regimes put core duties on the shipper: describing the goods accurately, packing and marking them properly, declaring dangerous goods, and paying freight unless agreed otherwise. Under SOLAS the shipper must provide the verified gross mass of a packed container in a shipping document signed by a person it has authorised. Under Hague-Visby the shipper is deemed to guarantee the accuracy of the marks, number, quantity and weight it furnishes and must indemnify the carrier for losses caused by inaccuracies. On a house bill the forwarder's customer is the shipper, while on the master bill the forwarder or its origin agent normally appears as shipper, and confusing the two causes errors in manifest data and release instructions. Confirm the correct shipper before documents are issued, because changing it afterwards usually requires surrender and reissue of the originals.

Shipper FAQ

Is the shipper the same as the exporter?

Not always. The shipper is the party named on the transport document, while the exporter or USPPI is defined by customs and export rules, and in routed or triangular trades they can be different companies.

Can a freight forwarder be the shipper?

Yes. On a master bill of lading the forwarder or NVOCC is usually the shipper toward the ocean carrier, and US law expressly includes an NVOCC that accepts responsibility for the charges in the definition of shipper.

What is the difference between a shipper and a consignee?

The shipper is the party that contracts for carriage or hands over the goods and is named as shipper on the transport document. The consignee is the party named to receive the goods at destination.

What happens if a shipper misdeclares the cargo weight?

Under Hague-Visby Article III(5), the shipper must indemnify the carrier for losses caused by inaccurate marks, number, quantity or weight it furnished. For packed containers, a missing VGM means the container shall not be loaded under SOLAS.

Sources

  1. 46 U.S. Code 40102 Definitions (Shipping Act), Cornell Law School LII (US Code)
  2. SOLAS Chapter VI regulation 2, cargo information and verified gross mass, Danish Maritime Authority
  3. Carriage of Goods by Sea Act 1971, Schedule (Hague-Visby Rules), UK legislation.gov.uk

Rules and figures change. Check the current text with the issuing body before relying on it.

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