Definition
The shipper (also called the consignor) is the party that sends or dispatches goods to another party. The shipper is named on the bill of lading, commercial invoice, and export declaration.
Why it matters for traders
The shipper is legally responsible for the accuracy of export documentation, proper packaging, export compliance, and handing over goods in the condition specified by the contract and Incoterm.
Shipper's responsibilities
- Preparing accurate export documentation (invoice, packing list, certificates)
- Proper packaging and labeling of goods
- Export customs clearance (depending on the Incoterm)
- Delivering goods to the carrier on time
- Ensuring goods match the contract specifications
- Obtaining required export licenses or permits
Shipper vs Exporter vs Manufacturer
| Term | Meaning |
|---|---|
| Manufacturer | The entity that produces the goods |
| Exporter | The entity that sells goods for export |
| Shipper | The entity named on shipping documents as the sender |
These can be the same entity or different entities. A trading company may export goods it did not manufacture and ship through a freight forwarder.
Operational example
A trading company in Mumbai buys textiles from a factory in Tirupur and exports them to Dubai. The trading company is the exporter and the shipper on the BL, even though the factory manufactured the goods. The factory is not mentioned on the shipping documents.