Shipper
Definition
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.
In Practice
On any shipment there are three core parties: the shipper who sends the goods, the carrier who moves them, and the consignee who receives them. The shipper is responsible for accurately describing the freight, packaging it for transit, loading it (in many arrangements), and providing correct documentation. Errors here, wrong weights, bad labeling, poor blocking and bracing, become the shipper's liability.
Who pays the freight is a separate question decided by terms: prepaid means the shipper pays the carrier, collect means the consignee pays, and third party means someone else, such as a parent company or 3PL, is billed. Planners on the shipping side also own tendering discipline: giving carriers accurate ready times and appointment-friendly pickup windows.
For example, on a purchase shipped FOB origin freight collect, the supplier is the shipper of record, but the buying company pays the carrier and owns the goods in transit.
Related Terms
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.
CarrierA carrier is a company that physically transports freight, such as a trucking company, ocean line, airline, or railroad. Carriers contrast with intermediaries like brokers and forwarders, who arrange transport but do not operate the equipment.
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.
FOB (Free on Board)FOB is an Incoterm for sea freight under which the seller delivers goods loaded on board the vessel at the origin port, at which point cost and risk transfer to the buyer. The buyer pays for ocean freight, insurance, and everything after loading.