Essential Terminology for the Auto Transport Industry

Who is a shipper

A shipper is a person or company that offers goods for transport from one place to another or arranges the transport. They oversee the shipment coordination and the process from when goods have been packed, labeled, shipped, etc.

The Role of the Shipper

The shipper's responsibilities encompass various aspects of the shipping process:

• Goods Preparation: Shippers are involved with the packaging and marking of the goods for shipment, and they also ensure that the consignment complies with the relevant legislation.
• Carrier Selection: Based on their preferences and policies, the shipper selects the most suitable carrier for transportation among the several available vital factors, which include cost, transit time, and service reliability.
• Documentation: The shipper organizes other shipping documents that may include the bill of lading, commercial invoice, and export declarations.
• Cost Management: In most cases, the shipper pays the freight charges even though this can be shared based on agreeing on the shipping terms.
• Risk Management: The shipper may get insurance if the goods are destroyed during transportation.
• Communication: The shipper interacts with the carrier and the consignee to ensure the shipment process goes well.

Types of Shippers

Shippers can be categorized based on their role in the supply chain:

• Manufacturer: Manufactures/ procures items and distributes them to distributors/ retailers.
• Distributor: Buys products from producers and supplies them to merchants or sub-buyers.
• Retailer: Sells goods directly to the consumer.
• Importer/Exporter: Handles shipments between countries.

The Shipper's Relationship with Other Parties

The shipper interacts with various parties throughout the shipping process:

• Carrier: The logistics company that transports the products.
• Consignee: The target customer or the buyer of the shipment to the express transporter.
• Customs Broker (for international shipments): It is involved in the customs clearance processes.
• Freight Forwarder (optional): They perform an agency role and work between the shipper and the carrier.

With knowledge about the shipper and their activities, the businesses can manage their shipping functions properly and help the flow of commodities.

Are you interested in the shippers' problems or the distinctions between them and the consignees?