Tuesday, September 9, 2008

Who is a shipper?

I realize the terminology in the shipping industry can be confusing. We still say "steamship line", although ships no longer run on steam.

A shipper is not the same as a shipping company.

Only those of us in the biz were bothered by the incorrect use of this term in the New York Times two years ago during the Dubai Ports debacle.

"The White House appeared stunned by the uprising, over a transaction that they considered routine — especially since China's biggest state-owned shipper runs major ports in the United States, as do a host of other foreign companies. Mr. Bush's aides defended their decision, saying the company, Dubai Ports World, which is owned by the United Arab Emirates, would have no control over security issues."



This should have said "China's biggest state-owned shipping company", which by the way is COSCO (not to be confused with Costco).

A shipper is whomever is shown on the billing of lading as the shipper. This can be the manufacturer, the exporter (which is not necessarily the same), a freight forwarder, a non-vessel-operating common carrier (yes, that is what NVOCC stands for), or even the brother-in-law of the person buying the goods. Believe me, after 30 years in this industry I have seen it all.

But, a shipper is not those big metal things that float on the water and transport goods across bodies of water.

Those things are called ships.

The companies which operates ships are called shipping companies, or steamship lines, or ocean carriers, or maybe lots of other things. But never, ever a shipper.

Unless of course the shipping company is shipping something that belongs to it, such as spare parts for the ship. Then it would be the shipper.

No wonder people think international shipping is difficult.




















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