Beneficiary

In shipping, the term “beneficiary” refers to the person or entity that is entitled to receive the benefits of a contract or agreement. Specifically, in the context of shipping and international trade, a beneficiary is often designated in a letter of credit. 

A letter of credit is a financial instrument used in international trade to ensure that the seller (or exporter) receives payment for the goods or services they provide. The letter of credit is issued by a bank on behalf of the buyer (or importer), and it guarantees that the buyer will pay the seller the agreed-upon amount, provided that the seller meets certain conditions, such as delivering the goods on time and in good condition. 

The beneficiary of a letter of credit is typically the seller or exporter who will receive payment for the goods or services provided.