A shipper is the person or company that gives goods to a carrier for transportation, named on the bill of lading as the party from whom the carrier received the freight. The term is defined this way under both Article 7 of the Uniform Commercial Code and federal law at 49 U.S. Code Chapter 801, which both use the word “consignor” as a synonym.1Legal Information Institute. UCC 7-102 Definitions and Index of Definitions2Office of the Law Revision Counsel. 49 U.S. Code Chapter 801 – Bills of Lading Being the shipper is not just a label on paperwork. The role carries legal responsibility for the accuracy of the shipping documents, the condition and packaging of the goods, the correctness of weight declarations, compliance with hazardous-materials rules, and in most cases the freight bill itself.
Shipper, Carrier, and Consignee
Every shipment involves three parties. The shipper hands the goods over. The carrier transports them. The consignee receives them. The shipper controls the cargo at the outset and bears the initial legal responsibility for what goes onto the truck, railcar, or vessel. The consignee’s main role is to accept delivery and inspect for damage.
Payment usually falls to the shipper unless the bill of lading or a separate agreement makes the shipment “collect,” in which case the consignee pays. Shippers who regularly sell goods FOB Origin should make sure their buyers understand that the buyer, not the seller, may need to file any freight claim for damage that occurs after the carrier takes possession.
Documents a Shipper Prepares
Bill of Lading
The bill of lading is the backbone of every shipment. Governed by 49 U.S. Code Chapter 801, it does three things at once: it is a receipt confirming the carrier took possession, a contract for transportation, and, when negotiable, a document of title that can transfer ownership of the goods.2Office of the Law Revision Counsel. 49 U.S. Code Chapter 801 – Bills of Lading Carriers typically supply blank forms, but the shipper fills them in and is responsible for the accuracy of every field, including:
- The commodity description, specific enough for the carrier to handle and classify.
- The actual weight of the shipment, including pallets and packaging.
- The piece count, meaning the exact number of handling units loaded.
- The National Motor Freight Classification (NMFC) code, which sets the rate based on density, handling, and liability exposure.3National Motor Freight Traffic Association. Everything You Need to Know about a Bill of Lading
- The consignee’s full address and contact details.
An incorrect NMFC code leads to rate adjustments after the shipment has already moved. An inaccurate weight triggers re-weigh fees and safety concerns that regulators take seriously.
Commercial Invoice for International Shipments
When goods cross a border, U.S. Customs and Border Protection requires a commercial invoice before merchandise can be released. Under 19 CFR § 142.6, the invoice must include an adequate description of the goods, quantities, values, the eight-digit Harmonized Tariff Schedule subheading, and the name and address of the foreign seller or manufacturer.4eCFR. 19 CFR 142.6 – Invoice Requirements Incomplete invoices delay clearance and can trigger additional inspections.
Certificate of Origin
To claim preferential tariff treatment under a trade agreement like the United States-Mexico-Canada Agreement, the shipper provides a certification of origin. Under USMCA, any format is acceptable so long as it contains the nine minimum data elements in Annex 5-A.5U.S. Customs and Border Protection. U.S. – Mexico – Canada Agreement (USMCA) Without a valid certificate, the importer pays the full duty rate.
Legal Duties the Shipper Owes
Packaging and Load Securement
The shipper must package goods well enough to survive normal transportation. Inadequate crating, wrapping, or palletization gives the carrier grounds to deny a damage claim. Federal rules require that cargo on any commercial motor vehicle be secured against shifting, leaking, or falling off during transit.6eCFR. 49 CFR 393.100 – General Requirements of Cargo Securement Standards The driver inspects the load within the first 50 miles and re-checks every three hours or 150 miles, whichever comes first.7GovInfo. 49 CFR 392.9 – Inspection of Cargo, Cargo Securement Devices and Systems When a container is sealed, or the loading pattern makes inspection impractical, the burden of proper securement stays squarely on the shipper.
Accurate Weight Declarations
Overstating or understating weight is not just a billing issue. Overweight trucks damage roads, void insurance coverage, and put other drivers at risk. International ocean shippers face a parallel duty under SOLAS, which requires a verified gross mass for every packed container before loading. The shipper meets this by weighing the packed container or by adding the individual weights of cargo, pallets, and dunnage to the container’s tare weight.8International Maritime Organization. Verification of the Gross Mass of a Packed Container A container without a verified gross mass will not be loaded, and the delay costs fall on the shipper.
Hazardous Materials Compliance
Anyone offering a hazardous material for transportation by air, highway, rail, or water falls under 49 CFR Part 172. The shipper must provide shipping papers listing the proper shipping name, hazard class, and UN identification number for each material, and must apply correct labels, markings, and placards.9eCFR. 49 CFR Part 172 – Hazardous Materials Table, Special Provisions, Hazardous Materials Communications, Emergency Response Information, Training Requirements, and Security Plans
Penalties are steep. The base statutory maximum under 49 U.S. Code § 5123 is $75,000 per violation for knowing failures.10Office of the Law Revision Counsel. 49 U.S.C. 5123 – Civil Penalty After inflation adjustments, the Pipeline and Hazardous Materials Safety Administration has raised the effective cap to $102,348 per violation, with fines reaching $238,809 when a violation causes death, serious injury, or substantial property destruction.11Federal Register. Revisions to Civil Penalty Amounts, 2025 Each day a violation continues counts as a separate offense. Knowingly concealing the hazardous nature of a shipment can also lead to criminal prosecution.
Record Retention
Shippers must keep copies of hazardous-materials shipping papers for set periods: three years after the initial carrier accepts hazardous waste, and two years for all other hazardous materials.12eCFR. 49 CFR 172.201 – Preparation and Retention of Shipping Papers The records must be accessible at the shipper’s principal place of business and available for government inspection on request. Electronic copies are acceptable if they meet the same accessibility standard.
Who Bears the Risk During Transit
Domestic FOB Terms
For domestic shipments, UCC Section 2-319 defines two main FOB arrangements. Under FOB Origin (also called FOB shipping point), the seller bears expense and risk only until the goods are placed in the carrier’s possession at the point of shipment. After that, the buyer owns the risk. Under FOB Destination, the seller bears expense and risk all the way to the destination and must tender delivery there.13Legal Information Institute. UCC 2-319 F.O.B. and F.A.S. Terms The distinction drives insurance decisions: under FOB Origin, the buyer needs coverage from the moment of pickup; under FOB Destination, the seller’s insurance should cover the whole trip.
International Incoterms
International trade uses Incoterms instead. Two endpoints show how far the shipper’s obligations can stretch. Under EXW (Ex Works), the seller simply makes the goods available at their own warehouse and the buyer arranges everything else: pickup, export clearance, ocean freight, duties, and last-mile delivery. Under DDP (Delivered Duty Paid), the seller handles the entire chain, including export formalities, international transport, import customs, duties, and delivery to the buyer’s door. The other Incoterms sit between those two, allocating costs and risk at different handoff points.
When Goods Are Lost or Damaged
Domestic Shipments: The Carmack Amendment
For freight moving by motor carrier or rail within the United States, the Carmack Amendment at 49 U.S. Code § 14706 governs liability. The carrier that issues the bill of lading, along with any connecting carrier that handles the freight, is liable for actual loss or injury to the property.14Office of the Law Revision Counsel. 49 U.S.C. 14706 – Liability of Carriers Under Receipts and Bills of Lading The shipper does not have to prove negligence, only that the goods were delivered in good condition and arrived damaged or did not arrive at all.
Carriers can limit their liability if they follow specific steps. They must offer the shipper at least two liability levels to choose from, and the shipper must agree to the limitation in writing or electronically. Shippers who accept a reduced tier pay a lower rate but sacrifice full-value protection. For high-value goods, declaring the actual value on the bill of lading and paying the higher rate avoids recovering pennies on the dollar after a loss.
Deadlines are strict. A motor carrier cannot require claims to be filed in less than nine months, and cannot require a lawsuit to be filed in less than two years after the claim is denied. Missing those deadlines forfeits recovery.
Ocean Shipments: COGSA
The Carriage of Goods by Sea Act, codified as a note to 46 U.S. Code § 30701, governs the relationship between cargo interests and the vessel operator on international ocean shipments.15Office of the Law Revision Counsel. 46 U.S.C. 30701 – Definition Under COGSA, a carrier’s liability is capped at $500 per package or customary freight unit unless the shipper declares a higher value on the bill of lading before loading. COGSA also gives carriers defenses, including navigational errors and perils of the sea, that do not exist in domestic trucking law. Recovering from an ocean carrier is therefore significantly harder than recovering from a motor carrier.
Cargo Insurance Is Separate
Carrier liability under either Carmack or COGSA is not insurance on your goods. It has dollar caps, long lists of exceptions, and requires proof that the carrier caused the damage. Cargo insurance is a separate policy the shipper buys. An all-risk cargo policy covers loss from almost any cause during transit regardless of fault, subject to the policy’s own exclusions. For high-value or fragile freight, carrier liability alone is a thin safety net.
If the Goods Are Leaving the Country
Exporting adds a layer domestic shippers never encounter. Violations can bring fines, seized shipments, and criminal charges.
Before shipping, the exporter determines whether the goods need an export license by identifying their Export Control Classification Number on the Commerce Control List under the Export Administration Regulations. Items not on the list receive a default “EAR99” designation and generally do not require a license unless the destination, end user, or end use triggers a restriction. The Bureau of Industry and Security accepts commodity classification requests when the correct ECCN is unclear.
Under 15 CFR § 758.1, the shipper files Electronic Export Information through the Automated Export System for any commodity subject to the Export Administration Regulations when the value under a single classification code exceeds $2,500. Goods requiring an export license must be filed regardless of value, and the filing must be accepted before the goods leave the country.16eCFR. 15 CFR 758.1 – The Electronic Export Information (EEI) Filing to the Automated Export System (AES)
Failure-to-file civil penalties can reach $10,000 per violation. Late filings run up to $1,100 per day of delinquency, capped at $10,000 per violation. Knowingly filing false export information or knowingly failing to file can bring criminal fines up to $10,000, imprisonment up to five years, or both.17eCFR. 15 CFR Part 30 Subpart H – Penalties
Exports use Schedule B numbers while imports use Harmonized Tariff Schedule numbers. The first six digits match, and in most cases an HTS code can substitute for Schedule B on export filings.18United States Census Bureau. Exporting With Import Classification Numbers There are roughly 9,000 Schedule B codes against about 19,000 HTS codes, so occasionally the HTS code lacks the detail Schedule B requires, and the specific Schedule B number must be used.