Shipper
Also called Consignor
The shipper is the party sending the freight and named as consignor on the bill of lading, and is the origin point of the load.
Last reviewed · by the Fleetchart team
Working directly with shippers removes the broker's margin, but requires credit checking, invoicing, collections and enough capacity to be reliable — the functions a broker otherwise performs.
Shipper behavior has direct financial consequences: dock efficiency, appointment discipline and whether detention is honoured all affect what a lane really pays.
For example, say a direct shipper pays $2,500 for a load a broker would have paid you $2,150 to move. You keep the extra $2,500 − $2,150 = $350. But now you must check the shipper's credit, send the invoice, chase the payment and cover the load if your truck breaks down. If the shipper pays in 60 days instead of a broker's 30, you wait twice as long for a bigger check.
Shipper habits hit your profit per load too. Say a shipper keeps your truck 4 hours past free time on every pickup and never pays detention. If an hour of your truck's day is worth $75 to you, that is 4 × $75 = $300 lost on each load.