Learning about carrier and shipping terms functions as a fundamental requirement for every e-commerce and retail business. Although carriers and shippers share some similarities in name, they serve unique functions during the shipping process.
These operations exist independently from each other as one member prepares goods for shipment and the other member delivers them to the destination. The clarity between carriers and shippers enables improved shipping process handling that prevents order fulfillment misunderstandings. Let’s take a look to determine what is the difference between carriers and shippers and their roles in the shipping industry.
What is a Shipper?
A shipper represents either a person or an organization that manages goods transport operations. Any business operating an online store that ships orders to its customers functions as the shipper. A shipper must prepare all delivery items before shipment occurs. The shipper performs packaging work and applies box labels while establishing shipping documentation for the deliveries. During delivery and while ensuring product safety, the shipper continuously monitors package movement to customers.
Delivery vehicles are typically owned by shipping companies instead of the shippers. Shipping companies serve as their transportation sources since they do not operate their moving units. A shipper can function as a consignor under certain circumstances to hand over goods for delivery to third parties. While shipper responsibility may not equal seller status, the shipper maintains complete authority regarding product preparation through carrier distribution.
What is a Carrier?
The transportation industry refers to carriers as businesses or service providers that deliver material items between distinct locations. A carrier accepts shipments from shippers to transport those goods directly to consignees who purchased the items by using trucks, airplanes, and ships. The most trusted shipping companies, including FedEx, UPS, DHL, and USPS, act as carriers.
After the transfer of goods to the carrier, the delivery process becomes their total responsibility. The transport company performs the duties of loading and unloading, as well as domestic or international movement of freight, while delivering status updates to shippers and recipients. The carrier remains responsible for any transport-related damage or loss that occurs based on the specified contract terms.
Main Differences Between Carriers and Shippers
Although carriers work along with shippers, they operate with distinct differences that distinguish their roles. Let’s take a look at the following differences.
- Vehicle Ownership
- Roles and Responsibilities
- The Bill of Lading
- Potential Risks and Liabilities
- Tracking and Monitoring
Below, we explained the primary differences in detail.
1. Vehicle Ownership
A shipper differs from a carrier through they have separate control and ownership of vehicles. Corporate transport companies maintain full ownership of their delivery vehicles, such as trucks, ships, and cargo planes.
The management of goods transportation extends from shippers to customers as their responsibility. Shippers maintain ownership of vehicles but do not operate transport vehicles themselves. The package preparation process is their primary job function, while they trust their delivery to be done by a carrier.
2. Roles and Responsibilities
A shipper maintains distinct duties from a carrier because they work under different professional limitations. The responsibilities of a carrier include goods collection, loading, and their delivery to the customers. Agencies that perform delivery responsibilities must secure proper destination delivery at high-quality standards without delays.
As part of their duties, shippers need to prepare appropriate packages along with proper labels while generating shipping documentation. Both shipping and carrier operations depend on the shipper to monitor deliveries as well as contact the carrier whenever necessary regarding delays or problems.
3. The Bill of Lading
Freight shipping operates primarily through the Bill of Lading, which stands as a vital shipping document. Shipping documentation that carriers generally create contains information about the shipment's origin, destination, and delivery time.
A Bill of Lading mentions all parties involved in the transaction with their specific names, including the shipper, the carrier, and the consignee. Initially, the shipper must give all required information to create this document. A Bill of Lading functions both as an agreement between the shipper and carrier, while it serves to demonstrate ownership of transported goods.
4. Potential Risks and Liabilities
After delivering goods to the carrier, they will become their full responsibility for safekeeping. The carrier faces legal responsibility to compensate for any goods that get lost or damaged during shipment. A shipper fulfills legal responsibility until the provider receives the goods properly from the carrier.
Due to inadequate packaging by the shipper, the delivery process may cause product damage, and the shipper will likely bear responsibility for fixing this problem. The parties involved in a shipment handle responsibility differently while managing their risks.
5. Tracking and Monitoring
The tracking process between carriers and shippers functions differently from each other, although they both track shipments. The delivery carriers establish tracking systems that enable shippers and customers to monitor their packages continuously through tracking numbers.
The carrier operates tracking tools and allows the shipper to track deliveries through this data, and provides customer notification about shipment delays or problems. The carrier remains responsible for delivery control, yet the shipper maintains continuous monitoring of the goods.
Conclusion
In the final verdict, the shipper serves as the goods' sender, who does preparation work before shipment, while the carrier performs deliveries to the customer. Hiring a carrier is appropriate if your main requirement is transportation assistance.
To ensure packaging and monitoring services, together with delivery, you should consider getting a shipper or a third-party logistics provider that handles both duties.
