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Understanding the Role of a Commercial Shipper [Transportation] in Logistics
Definition & Meaning
A commercial shipper is defined as a person or entity named as the consignor or consignee in a bill of lading. This individual does not own the goods being transported but is responsible for paying the transportation and tariff charges on behalf of the actual owner, known as the beneficial owner. Typically, the beneficial owner is an employee of the consignor or consignee. Additionally, a freight forwarder that submits a shipment to a carrier as part of their operations is also considered a commercial shipper. It is important to note that the federal government operates as a government bill of lading shipper, rather than a commercial shipper.
Table of content
Legal Use & context
The term "commercial shipper" is primarily used in the context of transportation law. It is relevant in various legal practices, including contract law and regulatory compliance. Understanding this term is essential for businesses engaged in the shipping and logistics industry, as it affects their responsibilities and liabilities under transportation regulations.
Users may find it helpful to utilize legal templates from US Legal Forms to manage shipping contracts and related documentation effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company that sells furniture (the consignor) hires a shipping company to deliver its products to a customer. The company is the commercial shipper because it is responsible for the shipping costs, even though it does not own the furniture being transported.
Example 2: A freight forwarder arranges for the shipment of goods from a manufacturer to a retailer. In this case, the freight forwarder acts as a commercial shipper by taking on the responsibility for the transportation charges while the actual ownership of the goods remains with the manufacturer. (hypothetical example)
Comparison with related terms
Term
Definition
Key Differences
Freight Forwarder
A person or company that arranges the transportation of goods for others.
A freight forwarder can also be a commercial shipper, but not all commercial shippers are freight forwarders.
Consignor
The person or entity that sends goods to another party.
The consignor is often the owner of the goods, unlike a commercial shipper who does not own the goods.
Consignee
The person or entity receiving the goods.
The consignee may also be a commercial shipper if they are responsible for payment.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving commercial shipping, it is important to understand your responsibilities and liabilities. Consider using legal templates from US Legal Forms to draft or review shipping contracts and agreements. If your situation is complex or involves significant financial risk, consulting a legal professional may be beneficial.
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