Definition
The consignee is the party to whom goods are shipped — the entity entitled to take delivery of the cargo at the destination. The consignee is named on the bill of lading, commercial invoice, and other shipping documents.
Why it matters for traders
Incorrect consignee details can prevent cargo release, cause customs complications, and create LC discrepancies. The consignee field on the BL determines who has legal right to claim the goods.
Key parties in a shipment
| Party | Role |
|---|---|
| Shipper/Exporter | The party sending the goods |
| Consignee | The party entitled to receive the goods |
| Notify Party | The party to be notified upon arrival (may be the same as consignee) |
| Carrier | The company transporting the goods |
Types of consignee on a BL
- Straight consignee — Named specifically; only that party can claim the goods
- To Order — The BL is negotiable; the consignee is whoever holds the endorsed BL
- To Order of Shipper — The shipper retains control until they endorse the BL
Operational example
A Chinese manufacturer ships goods to a UAE trading company. The BL lists the UAE company as consignee and their customs broker as the notify party. When the vessel arrives, the carrier notifies the broker, who presents the BL and customs documents to clear and deliver the goods to the consignee.