Future Internet PPP Use Case Project

Future Internet PPP

FInest Domain Dictionary

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Shipper (Seller)

The shipper and the consignee initiate the supply chain process when agreeing on a sales or purchase contract. A shipper can also be called a consignor. The purchase contract will contain clauses concerning the delivery terms of the shipment. A global standard in commercial delivery terms are the Incoterms. These delivery terms clarify responsibilities, cost and liability among the partners.1

The shipper is responsible for providing the cargo at the origin of the process. Depending on the delivery terms, the shipper might involve other parties in the execution of its tasks as sub-contractors. The shipper is also responsible for providing certain documents pertaining to the goods being shipped, e.g., letter of origin, load list containing weights and dimensions for the goods, and export approvals if necessary. Additional documents that the shipper might have to provide include a certificate from an approved certification company that the shipment matches the items described in the sales contract and on the load list. This certification is mandatory if a bank has issued a credit letter for the shipment.

To address risks of loss or damage during the shipping process the shipper might contract with an insurance broker to cover the risks of the transport. Without such coverage the various execution entities involved in the shipment of the shipper’s goods are limited in the damages that they must pay in case of loss by international conventions.

Because of all of the issues associated with moving goods internationally, most shippers will likely outsource most of the shipment tasks to an experienced international freight forwarder. The freight forwarder will then manage documentation and sub-contracting tasks on behalf of the shipper.


1) General Cargo Ship (2010): Parties involved in sea transportation of goods. buyer, seller, carrier, freight forwarder, shipper, consignee, agent & banks. Online available at

See Stakeholder

Last change: 2011-11-14

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