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  7. Shipper
Commercial

Shipper

Definition

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.

Related Terms

Consignee

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.

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.

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.

Third-Party Logistics Provider(3PL)

A company that provides outsourced logistics and supply chain management services including transportation procurement, freight brokerage, warehousing, and distribution on behalf of shippers. 3PLs frequently negotiate rail contracts and manage intermodal moves for their clients. They add value through scale, expertise, and technology platforms.

Freight Broker

An intermediary licensed by the FMCSA who arranges transportation between shippers and carriers without taking possession of the freight. In the rail context, brokers often coordinate intermodal moves combining truck drayage with rail linehaul. Brokers earn a margin on the rate spread between what shippers pay and what carriers charge.

More in Commercial

Bill of LadingBenchmark RateWaybillConsigneeStorage ChargeRate