Relationship between Consignee and Notify Party

Is there a relationship between consignee and notify party in a bill of lading..?? Simple enough question.. But the answer may not be as simple..

In a previous article on this blog, the consignee and notify has been defined as below :

Consignee – is a key entity in the shipping chain and is the person or company that is legally allowed to receive the cargo covered in the bill of lading..

Image for consignee and notifyNotify – is the name and address details of the person who should be notified of the arrival of the cargo..

There could be several types of relationships between consignee and notify, whether contractual or not.. Based on the way the bill of lading has been consigned, the permutation/combination and the relationship may be categorised as below :

CONSIGNEE NOTIFY RELATIONSHIP OF NOTIFY TO CONSIGNEE
To Order or To Order of Shipper DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver once the endorsed bill of lading is received
ABC Company Could be the final receiver who is being notified of the impending arrival of the shipment.. Certain buyers await this confirmation so that they can then pay the seller who can then endorse the bill of lading over to them for release..
To Order of XYZ Bank DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver
ABC Company Could be the final receiver who is being notified of the impending arrival of the shipment.. Once this notification is received, the buyer will pay the issuing bank (consignee’s bank) the charges as per the sales contract and receive the endorsed original bill of lading for release of cargo..
 
ABC Company DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver
Same as consignee Usually used when there is no specific notify, but can be used only if there is a full address of consignee in the consignee field
 
Name of Individual Name of Individual Could be the actual final receiver and in case of personal effects shipments, may be the same as shipper
DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo on behalf of the receiver
Same as consignee Usually used when there is no specific notify, but can be used only if there is a full address of consignee in the consignee field

Have you come across any other combination, if you have please do share..

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17 comments on “Relationship between Consignee and Notify Party”

  1. By Prakash Reply

    Hi,
    Can you suggest if consignee and notify party be from different countries. We are receiving payments from notify party and hence the question.

    • By Hariesh Manaadiar

      Hi Prakash, yes they can be.. But in some countries, customs regulations require that the consignee is from the same country as port of discharge.. Notify can be anywhere..

  2. By Steve Manson Reply

    Can a Consignee reassign a container of goods to another Consignee by the use of “Endorsement” or do all the BoL have to be reissued?

  3. By Carmela Reply

    As a notify party on the bill of lading do I need to provide a tax ID number ? Steamship line says they need it

    • By Hariesh Manaadiar

      Hi Carmela.. I have heard of this requirement in the Consignee column but never in the Notify Party Column.. Maybe you should recheck with the steamship line..

  4. By Jason Reply

    hi i have a question: can the shipper and consignee be the same person whilst the notify party is the customer?

  5. By Mthoko Reply

    Can someone please advise on this situatuion; the consignee is ABC Company and notify party (and forwarder) is DER Forwarder, does the notify party/forwarder need a release letter (or seperate authorisation) to be able to take custody of the goods or does it suffice that they are listed as notify party on the Bill?

    • By Els

      I would also be interested in that answer. Also does the type of bill of lading influence this answer e.g. original bill of lading vs seaway bill?

  6. By Howard Reply

    i am told that the south korean govt requires the consignee is the party responsible for paying the seller, which is obvious. My question is, when my company in the USA is responsible for paying the seller in korea, but the shipment is going to our client, our client insists that he be listed as the consignee. anyone have advice for my situation? greatly appreciate your feedback. Thanks

  7. By Nafi SEREZ Reply

    hello,

    I’d like to mention Freight Forwarder involved cases as well… here is an example which we usually deal with: FF requests MBL from shipping line as Shipper DEF Forwarder, Consignee GHI Forwarder, Notify GHI Forwarder then issues his HBL as requested by actual shipper/consignee. (GHI Forwarder acts as DEF Forwarder’s agent at POD)

    Regards
    Nafi SEREZ

    • By Hariesh Manaadiar

      Good question..

      As the role of a notify party is to receive notification of the arrival of the cargo, it is mandatory to have some notify party’s name in cases where consignee is not clearly identified – like if consignee is shown as

      To Order
      To Order of Shipper
      To Order of XYZ Bank
      Or Consignee shows only company’s name or individual’s name and no other contact details

      Shipping lines will insist that the notify party be someone from the same country as the POD especially in above cases.. Means either the consignee or notify must be from the same country as the port of discharge..

  8. By Barai Overseas (@baraioverseas) Reply

    In case of L/C contract, generally “name of buyer co.” is written in notifying party and “Bank name” is written on Consignee. That is proper methodology of Invoice and PKL, but in terms of B/L this article is absolutely correct.

    • By junaid ahmed

      in the said case as it happened two days ago in Paraguay with a customer, we s a shipping company has shown the consignee as o Order of XYZ Bank, and in notify column ABC trading ASUNCION PARAGUAY. Now our agent in Paraguay told us that consignee should be the one who is the ultimate receiver of the cargo. we explained them that the consignee is the bank who has endorsed the back of the obl in favour of the notify ABC TRADING. But they refused and said thatthe consignee should be the same as notify and charged USD.770/= for the amendment charges in customs. they said this is PARAGUAY custom authorities regulation. what you think is that correct

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