A consignor and a consignee; understanding the positions

Understanding who is a consignor and a consignee can help you handle sending and receiving packages. It doesn’t matter if you are a company or an individual. Or, if you are working with a company or not. Understanding terms when it comes to sending packages is important. This way, you will have less chance of an issue with your customs clearing agents in Bahrain. So, read about these terms and you will easily find an easy way to get to know all about them. Without understanding their terms, you will have less chance of shipping your items without problems.

Why should you understand this type of terminology?

You may wonder at some point. Why would I have to learn these types of terms just so I can do business or send items to other companies or people? But, you should know that understanding terms that everyone around you is using in business is crucial for success. First of all, communicating with the person who understands what you are saying is great. Opposing to talking to a person that is not able to catch up with prases. If you know all about moving when moving home, your movers in Jeddah will be there for you much easier than if you had no idea what they are talking about. The same goes for shipping belongings.

shipping items
Shipping items is easier if you understand the terminology

If you decided to go into logistic services and ship or receive packages, you will have to know all about the terms. This is the only way to be responsive enough and being able to make deals with people and companies without delays and issues. So, you need to make sure you learn all the terms you are not sure what the meaning is of. You should read blogs and articles on these topics. At least, until you know you are ready to communicate with people in the said business without issues.

Once you are able to do it, you will have no issues to start and deal with the logistic business or any other business that involves shipping packages or receiving them. And, knowing the difference between a consignor and a consignee is definitely something you have to know when going into it.

What is the difference between a consignor and a consignee?

Anyone that wants to be successful in any type of industry or business, they have to be able to keep up with the terminology. That is why it’s crucial that you understand and know what is the difference between a consignor and a consignee. This is the only way to be sure that you won’t seem uninformed and unprofessional when it really matters. So, start by learning these terms. And, learn as much as possible of the other terms related to the shipping industry. No matter what type of sipping services you are using and if your packages get delivered by ship, car, van, truck, train, or plane, you should be ready for it. To understand this, you need to know:

  • What is the consignment?
  • Who is the consignor?
  • And, who is the consignee?

Sure, it might seem complicated, but it’s not complicated at all. You just have to get the information and you will know all about it.

a man signing a peper
You need to know about the documentation that the consignor and consignee have to sign

Who is the consignor?

If you are wondering about who is a consignor, you should also know what is a consignment. A consignor is a person who sends the package or the person who is doing it on someone else’s behalf. So, whoever is sending the package and signs for it while sending it, they are on this side of the trade. And, they are the consignor. So, I a company made some type of product, they will send this product to their agent in some other place. This is another example of the consignor. So, the over of the product that is being shipped to another party is the consignor.

Who is the consignee?

Now we know that the consignor is the person that is shipping an item. So, it’s only logical that the consignee is the person that is receiving it. So, if someone else ships you the item that belongs to them, no matter if they made it or bought it and are selling it again, you are known as consignee. This means that if you are the middle man of some kind of exchange of goods. You are a consignee until you receive the said package and send it on. Then, you become the consignor.

Who owns the package?

When it comes to the ownership of the item that is being sent from the consignor to a consignee, you should know about it as well. While the consignment contains the signatures of both of them, the item that is being sent belongs to the consignor most of the time. This is the case all along until the consignee pays the full price of the item that is being shipped. So, once the item is paid by the consignee and the consignor receives the money for the item, the consignee becomes the owner of the item or the shipment. Depending on how near or far you are shipping or receiving a package from, you need to make sure you know what are the items  that can’t be imported and exported in Saudi Arabia.

a package
Once the consignee pays for the package, he owns the goods inside

Knowing what is the difference between a consignor and a consignee is important for your business. You have to know that the consignment contains the names of the consignor and a consignee. This is important until the package is delivered. And, the shipped item is owned by the person that is shipping it. Or the consignor, until the consignee or the receiver of the package pays for the item once it’s delivered. If you know this, you will be prepared to deal with shipping and receiving items without any issues.

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