Consignee
Definition
The consignee is the party to whom a shipment is addressed and delivered, named on the bill of lading as the receiver of the goods. The consignee is usually, but not always, the buyer.
In Practice
The consignee's name on the bill of lading determines who the carrier may legally release freight to. In international shipping this carries extra weight: with a negotiable ocean bill of lading, cargo is released to whoever presents the original documents, while a straight bill names a specific consignee. The consignee is also typically the importer of record for customs purposes unless otherwise arranged.
Operationally, the consignee controls the receiving end of service quality. Appointment availability, unload speed, and inspection discipline at the consignee's dock drive detention charges, refused-delivery costs, and claim outcomes. Noting shortages or damage on the delivery receipt at the moment of receipt is the consignee's single most important habit, since a clean signature largely waives claim rights.
For example, a distributor buying from an overseas supplier is named consignee on the ocean bill of lading and must present it, endorsed, to obtain container release at destination.
Related Terms
The shipper is the party that tenders goods to a carrier for transport, typically the seller or origin facility named on the bill of lading. In freight contracts, the shipper is the carrier's customer.
Bill of LadingA bill of lading is the legal document issued by a carrier that serves as a receipt for goods, evidence of the transport contract, and in ocean shipping, a document of title to the cargo. It travels with, and controls, the shipment.
Proof of DeliveryProof of delivery (POD) is the documentation confirming a shipment was received at destination, traditionally a signed delivery receipt and increasingly an electronic signature, photo, or GPS-stamped scan. It establishes when, where, and in what condition goods were delivered.
Customs ClearanceCustoms clearance is the process of getting goods approved by government authorities to enter or leave a country, including filing declarations, paying duties and taxes, and satisfying any inspections. Goods cannot be delivered until clearance is complete.