Shipper refers to the party that entrusts a carrier to transport goods to a designated destination and pays the freight, usually the exporter, seller, or consignor. In transport documents such as bills of lading and air waybills, the Shipper field is filled with the actual consignor's name and address. Use cases include: booking space, customs declaration, insurance, preparing transport documents, and handling cargo damage claims. Notes: The Shipper is not necessarily the seller (e.g., in intermediary trade it may be a third party), nor is it necessarily the domestic consignor on the customs declaration; in letter of credit settlement, the Shipper's name must match the LC requirements, otherwise it may constitute a discrepancy. As opposed to 'Consignee', the Shipper is the principal of the transport contract; as opposed to 'Carrier', the Shipper is the service demander; unlike 'Notify Party', the latter is only responsible for receiving arrival notices. In addition, under FOB terms, the buyer arranges booking, but the Shipper is still the seller; under CIF terms, the seller is both Shipper and insurer. Clarifying the Shipper's identity helps allocate responsibility, handle claims, and meet compliance requirements.
📝 Examples
1. Please confirm that the Shipper on the bill of lading is shown as our full company name 'ABC Trading Co., Ltd.' to avoid affecting letter of credit negotiation. (Note: In LC settlement, the Shipper's name must strictly match the LC, otherwise the bank may refuse payment.)
2. Since it is under FOB terms, the buyer designated the shipping line, but the Shipper should still be filled in as our company name to facilitate subsequent export tax rebate and claims. (Note: Under FOB, the buyer books space, but the seller as Shipper retains the consignor identity on the transport documents to protect its own interests.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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