Difference between Consignor, Consignee and Shipper

Key difference: There is no difference between the terms ‘consignor’ and ‘shipper’ as both the terms mean the same; a consignor is a person who is usually the owner and the shipper of the commodities supplied, whereas a ‘consignee’ is the party or the person for whom the shipment is consigned.

Often, the terms ‘consignor’, ‘shipper’ and ‘consignee’ are very commonly used in trading and transportation of goods from the vendor to the buyer. The act of consignment refers to the process of sending goods from the seller to the buyer, wherein the consignor and consignee happen to be the parties in the transaction. In layman terms, the ‘consignor’ or the ‘shipper’ is the sender of the goods, while the ‘consignee’ is the receiver of the goods.

In a business deal, the manufacture or the owner sends his goods to the buyer; this act is referred to as consignment, wherein the owner sends his goods through the agents to another place. The goods sent in this manner are called as consignment whereas the sender is called the consignor.

Though, in parlance of the transporter, the person who delivers the consignment or goods, or that are to be delivered at another place, is called as consignor.  However, the carrier or transporter records the sender as the consignor and the ownership of the goods remains with the consignor, until they have been delivered to the buyer. The buyer has to then pay for the transportation and the price of the consignment in total. Also, there is a drawn up contract that fills the name of the sender as the consignor.

This consignment that is received by the other party is termed as ‘consignee’. The consignee is only the receiver of the goods, and not the owner of the goods. The ownership of the goods is only transferred when the receiver has paid in full for the delivery of the goods.

Though, many a times, the consignee may send an agent on his behalf to receive the goods from the consignor. This is only when, the agent has acted on behalf of the consignor to sell the goods and remitted the value of the goods after deducting his commission and expenses that the ownership is transferred to him. However, it has to be remembered that the person who receives the goods is always a consignee in a consignment, be it agent or an actual buyer.

Further Comparison between Consignor, Consignee and Shipper:

 

Consignor /Shipper

Consignee

Definition

According to Wikipedia, in the contract of carriage, the consignor is defined as the person sending the shipment to be delivered by land, sea or air. 

According to Wikipedia, in the contract of carriage, the consignee is the person to whom the shipment is going to be delivered by land, sea or air.

Terms

It is the term given to the sender of the consignment.

It is the term given to the receiver of the consignment.

It is

It is the seller or the owner of the goods.

It may be the buyer or an agent who acts on behalf of the consignor.

Image Courtesy: asl-logisticsworldwide.com, money.msn.com

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