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Consignee vs notify party, and 'to order' bills of lading explained

The consignee box on a bill of lading decides who can take the cargo, while the notify party is only the contact the carrier tells when the ship arrives. Whether the consignee is a named company (a straight bill) or 'to order' (an order bill that can be endorsed) changes how the bill is transferred, how it fits a letter of credit, and how delivery works.

Checked against official sources: 2026-10

At a glance

ConsigneeThe party to whom the goods are to be delivered under the bill of lading
Notify partyOnly a contact to be told of the ship's arrival; it has no rights to the cargo
Straight billNames the consignee with no words allowing transfer or endorsement; non-negotiable
Order billConsigned 'to order', 'to order of shipper' or 'to order of [bank]'; negotiable by endorsement
US ruleA bill is negotiable if it states the goods are to be delivered to the order of a consignee (49 U.S.C. 80103); naming a notify party does not limit this
Straight bill deliveryUnder English law (The Rafaela S) and in Singapore, an original straight bill must still be presented to take delivery
Sea waybillAn alternative when the cargo will not be traded and presenting originals is a problem
Changing detailsFor a negotiable bill, all originals must be returned unendorsed before the carrier agrees to a change

Straight, order and the notify party

A straight bill of lading names the consignee and has no words, even in the printed clauses, that allow it to be transferred or endorsed. An order bill is made out 'to order', 'to order of shipper' or 'to order of' a bank, so it can be endorsed and passed on, for example to a buyer once it has paid or to the bank under a letter of credit. In the United States, a bill stating that the goods are to be delivered to the order of a consignee is negotiable, and a non-negotiable bill must be marked 'nonnegotiable' or 'not negotiable'.

The notify party is the company the carrier contacts when the cargo arrives, often the buyer or its customs broker. It has no rights to the cargo, and under US law naming a notify party does not limit negotiability or give that party a right to the goods.

Which to use

Delivery and changes

Under English law, confirmed in The Rafaela S, and in Singapore, the carrier delivers under a straight bill only against an original, unless the printed words are deleted and the bill clearly says production is not needed. Where producing originals is a problem and the cargo will not be traded, P&I clubs suggest a sea waybill instead.

A shipper can usually ask to change the consignee or notify party before the cargo reaches the destination and the manifest is filed with customs. For a negotiable bill, all originals must be returned to the carrier free of endorsement first, and the customs manifest must be amended too, or the container may go to the wrong destination.

Step by step

  1. Check the sales contract or letter of credit for the exact consignee and notify party wording.
  2. Choose a straight bill or sea waybill for prepaid trusted buyers, and an order bill when the bill is security for payment.
  3. Write the full name, address and contact details of the notify party.
  4. For an order bill, endorse it on the back when you transfer it.
  5. Check the draft bill of lading before it is issued.
  6. If details must change, ask the carrier before arrival and the manifest filing, and return all originals first.

Documents you usually need

Common problems and how to avoid them

The bank rejects the bill of lading under a letter of credit.

What to do: The consignee and notify party must follow the credit; for example 'to order of' the issuing bank, not the buyer's name.

The notify party claims the cargo without the original bill of lading.

What to do: The notify party has no rights to the cargo; delivery goes to the consignee or the holder of the order bill.

The buyer wants the consignee changed after shipment.

What to do: Ask the carrier before arrival and the manifest filing; for a negotiable bill, all originals must be returned unendorsed first.

A straight bill is issued but the originals will arrive late.

What to do: The original is still needed to take delivery under English and Singapore law; use a sea waybill next time if the cargo will not be traded.

Sources

  1. 49 U.S. Code § 80103: Negotiable and nonnegotiable bills Cornell Law School LII
  2. Delivery under straight or non-negotiable B/Ls: should they still be in use? Skuld
  3. TT Talk: when can you change the details in a bill of lading? TT Club

Rules change often. This note is practical guidance based on the sources above, not legal advice. Confirm current requirements with the authority, your importer or a licensed customs broker before you ship.

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Trade notes

Bill of Lading Draft Check: SI, VGM, UCP 600, US ISF and EU ICS2Check a B/L draft before issue: parties, ports, goods, marks, weights, freight terms, on-board date, UCP 600 credit rules, US manifest and ISF, EU…Bill of Lading Meaning: Original B/L 3/3 vs Telex Release vs Sea Waybill, Which Is Safe?Original B/L 3/3, telex release (surrendered B/L), sea waybill, house vs master and straight vs to order bills, and which is safe on T/T, copy…Letter of indemnity (LOI) for delivery without the original bill of ladingWhy carriers ask for a letter of indemnity when the original bill of lading is late, the risks for carrier, buyer and exporter, P&I cover, bank…

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Common questions

What is the difference between consignee and notify party?

The consignee is the party the goods are delivered to; the notify party is only told when the ship arrives and has no rights to the cargo.

What does 'to order' mean on a bill of lading?

The bill is an order bill: it can be transferred by endorsement, for example 'to order of shipper' until the buyer pays.

Is a straight bill of lading the same as a sea waybill?

No. Under English and Singapore law an original straight bill must still be presented to take delivery; a sea waybill does not need to be presented.

Can the notify party be the same as the consignee?

Yes, it is common to write the buyer in both boxes, or 'same as consignee'; the notify party box gives the carrier a contact.

Can I change the consignee after the bill of lading is issued?

Usually yes, before the cargo arrives and the manifest is filed; for a negotiable bill, all originals must first be returned unendorsed.

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