Whenever I read a newspaper that features an article on international trade issues, my skin crawls when it refers to carriers as "shippers," as in "Port Director Felix Catnip predicted that the new cargo tracking system would attract several large shippers to the port."
Port Director Catnip really wants to attract carriers. It's up to the carriers to attract the shippers.
Here's a simple run down of Who's Who in the shipping business.
Let's say that Florida Fender in Miami ships 10 crates to Andy's Automotive in Atlanta via Acme Trucking.
SHIPPER
The party that initiates a shipment. In our case, Florida Fender. Occasionally, the shipper is called the Consignor.
CONSIGNEE
The destination party or receiver of the cargo. The person to whom the shipment is consigned, in this case Andy's Automotive.
CARRIER
The firm that actually transports the goods, in our case Acme Trucking. An air carrier is the airline, an ocean carrier is the vessel operator that transports the goods. A few old-timers still refer to ocean carriers as "steamship lines." Transportation lawyers are likely to refer to truckers as "motor carriers."
NOTIFY PARTY
A notify party has an interest in the shipment though it may or may not be part of the commercial transaction. For example, an import shipment may show ABC Customs Brokers as a notify party. The Customs broker must be kept in the loop in order to clear Customs expeditiously. You might be the Notify Party when you purchase products overseas but reduce your costs by consigning it directly to your customer. The air waybill would show your customer as the consignee but you're notified of its routing and arrival.
FORWARDER
A third party which typically helps to arrange the shipment in behalf of the shipper or consignee. In air freight especially, the forwarder may occasionally also serve as carrier. For example, DHL might act as forwarder and ship the goods on its own aircraft.
CONSOLIDATOR
Similar to or the same as a forwarder. As the term implies, the consolidator aims to combine multiple shipments for rate and handling advantages. It keeps a portion of the savings as profit and passes the rest of the savings to the shipper or consignee.
SHIPPING AGENCY OR ADVISOR
Often operates as a franchise or affiliate of a forwarder or carrier. They obtain business for their franchisor and, in the process, guide their customers with shipping advice, documentation requirements, packing and other details. Freight savings are also a frequent benefit.
AGENT
A general term for one party which acts officially on behalf of, and with the approval of, another. Ocean carriers may have their own offices in major port cities and then employ agents (who may represent several lines) in smaller metropolitan areas. An ocean freight forwarder serves as transportation agent for exporters. An airfreight forwarder is usually legally the agent of the airline, not the shipper. In cases such as bankruptcy or negligence, the legal structure and limits of agency can be a major factor in settlements.
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Article added to SearchWarp.com on Wednesday, October 15, 2008 View other articles written by Jenny Cadalina(424)
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