Consignor & Consignee
Definition

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What Are Consignor & Consignees in Transport?

In the transport sector, there is a consignor who sends the freight and the consignee who receives the goods.

The consignee can be an agent sent by the buyer to complete the transaction. To ensure the movement of goods between the two parties happens effectively, there is a consignment.

Consignment

The consignments are the goods or products sent by the consignor to the consignee. A contract is drawn up between the two parties in which one party pledges to deliver a certain amount of goods to the consignee. The name of the consignee is in the contract to ensure the goods arrive to them.

In a consignment, the consignee does not have together with the owner of the goods or the one who bought them. The consignee is the individual who received the goods from the consignor. This is important to remember because, in most cases, a consignee is sent by the owner of the goods to represent them.

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Ownership of the Goods

Ownership of the goods is only transferred from the consignor when the consignee pays for the goods delivered in full. The consignee also pays in full once the goods have been delivered at a pre-discussed time frame. After the consignee pays for the goods in full and obtains full ownership, they can become a consignor with another consignee. It is not a matter of concern to the first consignor what happens to the goods. The cosine has the full rights to sell the goods to another party.

Once the carrier has delivered the goods, the name of the consignee is put down on the documents with the consignment. The document is maintained as a record of who received the goods sent by the carrier. All the parties involved in the transaction, except for the consignee, have the consignment documents.

Prepaid goods

If the goods were paid for beforehand, then the name of the consignee is known by the carrier and the transporter of the goods. Once the identification of the consignee is verified, the carrier requests the consignee to confirm they have received the goods and the truncation is complete.

The shipper of the goods is also the consignor as a general rule of trade. It is assumed that the owner of the goods left them in the custody of the shipper. It remains the responsibility of the shipper as the cosigner to ensure that the goods have been paid for in full by the consignee.

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