Consignee
The consignee is the party a shipment is addressed to — the person named in the bill of lading or consignment note as entitled to take delivery of the goods. It is often the buyer, but can be a bank, an agent or a forwarder; the notify party is simply whoever the carrier tells when the goods arrive.
What the law says
- US federal law: the person named in a bill of lading as the one to whom the goods are to be delivered.
- Hamburg Rules: the person entitled to take delivery of the goods.
- Rotterdam Rules: a person entitled to delivery under a contract of carriage or a transport document.
Consignee, buyer and notify party
| Party | Role |
|---|---|
| Shipper (consignor) | Hands the goods to the carrier and contracts for the carriage |
| Consignee | Is entitled to take delivery at destination |
| Notify party | Is told when the goods arrive — often the buyer or its customs broker |
| Buyer | Owns or will own the goods under the sales contract — not always the consignee |
Worked example: one container, two consignees
An exporter ships through an NVOCC. Two bills cover the same container. On the master bill, issued by the shipping line, the NVOCC's destination agent is the consignee — US customs rules allow an NVOCC or forwarder to be listed as consignee at master-bill level. On the house bill, issued by the NVOCC, the consignee is the importer — or, for a letter-of-credit sale, "to order" of the bank, with the importer as notify party.
When cargo moves "to order", US rules report the to-order party as the consignee and put any other contact in the notify-party field.
The mistake people make
Naming the buyer as consignee on a straight bill before being paid. A straight bill lets the named consignee take delivery without presenting an original, so the seller has handed over control of the goods along with the address.
FAQ
Consignee: common questions
- What is a consignee?
- The party named in the transport document as entitled to take delivery of the goods at destination.
- What is the difference between the consignee and the notify party?
- The consignee is entitled to take delivery. The notify party is only told the goods have arrived — often the buyer or its customs broker when the consignee is a bank or "to order".
- Can the consignee be different from the buyer?
- Yes. A bank under a letter of credit, a forwarder or an NVOCC agent can be the consignee, with the buyer named as notify party until the documents pass to it.
Sources
- 49 U.S.C. § 80101 — Definitions: consignee (Cornell LII)
- United Nations Convention on the Carriage of Goods by Sea, 1978 (Hamburg Rules) — UNCITRAL
- Rotterdam Rules — UNCITRAL
- 19 CFR 4.7a — Inward manifest information (Cornell LII)
- 49 U.S.C. § 80103 — Negotiable and nonnegotiable bills (Cornell LII)
Related terms
- Bill of ladingTerm
- NVOCC (non-vessel-operating common carrier)Term
- CMR consignment noteTerm
- Proof of delivery (POD)Term
On Traqo: Real-time Tracking gives your consignee a branded link to follow the shipment live.
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