What’s the Difference Between a Consignor and a Consignee?

Posted by: Syed Shah Post Date: 5th November 2018

The consignor and consignee are terms which are commonly used in the trading and transport sector. The consignor is the sender of goods and the consignee is the receiver of the goods (this can be the buyer or their agent).

Consignor

When goods are sent by the manufacturer or the producer to the buyer, the act is referred to as consignment where the owners of the goods send the goods to their agents in another location. The goods that are sent in this manner are referred to as consignment while the sender is called the consignor. The main document that is drawn up as a contract by the carrier enters the name of the sender as the consignor.

consignor and consignee

Consignee

In a consignment, the receiver of the goods is termed as the consignee. A consignee is only a receiver and not the owner of the goods. The ownership is transferred only when the consignee has paid the consignor, in full, for the goods. In most cases, a consignee is only an agent receiving the goods from the consignor. It is important to remember that the person who receives the goods in a consignment is always a consignee. Whether he is the buyer or an agent receiving the goods with the intention of selling is of no concern to the carrier who enters his name as the consignee in the documents pertaining to consignment.

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What is the difference between Consignor and Consignee?

The key points differentiating the two terms are as follows:

  • A consignment always has a consignor and a consignee in the document written out by the carrier or the transporter.
  • The consignor is the sender of a consignment while the consignee is the receiver of the consignment.
  • The consignee may be a buyer or just an agent who acts on behalf of the consignor.
  • The ownership of the goods or the consignment remains with the consignor until the goods have been paid for in full by the consignee.

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