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  7. Consignee
Commercial

Consignee

Definition

The party designated on the bill of lading to receive the shipment at the destination. The consignee is responsible for unloading the car within the free time period and for paying collect freight charges if applicable. They are also liable for demurrage if unloading is delayed.

Related Terms

Consignor

The party who ships or consigns goods for transportation; synonymous with shipper in most railroad contexts. The consignor is named on the bill of lading as the originating party and bears responsibility for proper preparation of the shipment. Prepaid freight charges are billed to the consignor.

Shipper

The party that tenders freight to a railroad for transportation, also known as the consignor. The shipper is responsible for proper loading, securing, and documentation of the lading. In rail rate negotiations, the shipper is the primary counterparty to the railroad.

Bill of Lading(BOL)

The primary shipping document that serves as a contract of carriage between the shipper and the railroad, a receipt for the goods tendered, and sometimes a document of title. The bill of lading describes the commodity, weight, origin, destination, routing, and any special terms. It is issued by the railroad or its agent when freight is accepted for transportation.

Demurrage

A charge assessed by a railroad against a shipper or consignee for detaining a railcar beyond the allowed free time at a loading or unloading facility. Demurrage incentivizes rapid car turnover and compensates the railroad for lost car utility. It is distinct from detention, which applies to equipment held at non-railroad locations.

Reconsignment

A change in the consignee, destination, or routing of a shipment after the original bill of lading has been issued but before final delivery. Reconsignment allows shippers to redirect freight in transit to meet changing market conditions. A charge is typically assessed by the railroad for processing a reconsignment.

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