Notify Party vs Consignee: Which Name Goes on the B/L?

The consignee is the party entitled to take delivery of the cargo at destination, while the notify party is simply the contact the carrier tells when the cargo arrives. Mixing up the two boxes on a bill of lading (B/L) can mean a missed arrival notice or a delayed release. Here is how to fill them for the most common payment terms.

Key takeaways

• The consignee is the receiver named on the B/L and has the right to claim the cargo.
• The notify party receives the arrival notice; being named there gives no right to the goods.
• Both boxes can show the same company, or the notify party box can read “SAME AS CONSIGNEE”.
• When the consignee is “TO ORDER”, a separate notify party is needed. Maersk makes a First Notify Party mandatory in that case.

What is the difference between the consignee and the notify party?

The consignee is the party named on the B/L as receiver and is entitled to take delivery at destination. The notify party is the contact the carrier informs when the cargo arrives, and it has no delivery right. Delivery questions depend on the consignee box; communication depends on the notify party box.

On a straight B/L only the named consignee can take the goods. On a to-order B/L the consignee box reads “TO ORDER” or “TO THE ORDER OF …”, and whoever holds the properly endorsed original claims the cargo. Because the real importer does not appear in the consignee box, it is listed as notify party so it hears about the arrival.

How do you fill both boxes for different payment terms?

When the buyer pays by T/T and takes delivery itself, put the buyer as consignee and the same company, or “SAME AS CONSIGNEE”, as notify party. When a bank or the seller needs to control the documents until payment, make the consignee a to-order party and put the buyer as notify party. Under a letter of credit, copy the wording the credit requires.

Situation	Consignee	Notify party	What it means
T/T, buyer takes delivery	Buyer	SAME AS CONSIGNEE or buyer	Simplest setup
Destination forwarder clears customs	Buyer	Destination forwarder or broker	Clearance starts sooner
Letter of credit	TO THE ORDER OF issuing bank	Buyer	Bank controls the documents
Seller keeps control until paid	TO ORDER OF SHIPPER	Buyer	Release needs the endorsed original

For example, a Korean exporter selling FOB to a German buyer whose forwarder handles local clearance would list the German buyer as consignee and that forwarder as notify party (a hypothetical example). Keeping the consignee wording on the commercial invoice and packing list in line with the B/L makes document checks easier.

What goes wrong if the notify party is filled in badly?

If the contact details are missing or wrong, the arrival notice does not reach anyone in time and clearance and pickup start late. Late pickup can run past the carrier’s or terminal’s free time and trigger storage or demurrage charges. Asking the carrier to hand the cargo to the notify party will not work, because that box carries no delivery right.

Give a working email address and phone number, not just a company name and address. Maersk makes phone, email and tax numbers mandatory for parties in certain countries. For how free time and charges work, see Demurrage vs Detention.

Can you change these boxes after the B/L is issued?

Yes, but through the carrier’s amendment process. Maersk lets customers change the consignee and notify party through the Amend Bill of Lading option online, and if originals were already issued it requires confirmation that the old set was cancelled, destroyed or made void. Amendment fees and deadlines differ by carrier, so check your carrier’s own instructions.

How is the B/L used in Korean import clearance?

According to the Korea Customs Service, import declarations are filed through UNI-PASS, with the invoice, packing list, B/L and certificate of origin among the additional documents. If the receiver and notify details on the B/L do not match the actual importer, customs may ask for supplementary documents, so confirm the wording with your buyer before shipment.

FAQ

Can the consignee and notify party be the same company?

Yes. When the buyer handles its own clearance and pickup, both boxes show the buyer or the notify party box reads “SAME AS CONSIGNEE”. On a to-order B/L the buyer’s name is not in the consignee box, so list the buyer separately as notify party.

Can the notify party take delivery of the cargo?

Not just by being the notify party. Delivery goes to the named consignee on a straight B/L, or to the holder of the endorsed original on a to-order B/L.

Is a notify party required on a to-order B/L?

Under Maersk’s rules, yes. Its shipping instruction guide makes a First Notify Party mandatory when the consignee is set to “To Order”. Other carriers set their own rules, so check when you submit the SI.

How many notify parties can you list?

It depends on the carrier’s form. Maersk offers a First Notify Party and an Additional Notify Party.

Sources

• Maersk, How to use the party step in shipping instructions
• Maersk, How do I change the Consignee or Notify party on my Bill of Lading?
• Maersk, Amendment of consignee or shipper after issue of bill of lading
• Korea Customs Service, Import Clearance
• Related posts: Bill of Lading vs Sea Waybill, HBL vs MBL, Shipping instruction cut-off