Telex release bill of lading definition
A “Telex release” is an application by the shipper (seller) to the shipping line, which provides a letter of guarantee and sends an electronic message or e-mail to the port of destination authorizing to release the goods to the consignee.
The consignee picks up the goods based on identification or other necessary paperwork without the need to present the original B/L.
Telex release bill of Lading operation process
- Original Bill of Lading Issuance: during goods loading and shipment, the carrier issues original Bill of Lading which is a transferable document of goods ownership.
- Request “Telex Release”: the shipper requests a “Telex Release” from the carrier.
- Surrender of Original B/L: the shipper (seller) will deliver the original B/L to the carrier.
- Telex Release Issuance: After receiving the original B/L, the carrier will send a telex or electronic message to the port of destination instructing the consignee to release the goods without the original B/L.
- Â Cargo Release: The consignee will present identification or other necessary documents at the port of destination to pick up the shipment.
Advantages and disadvantages of using telex release bill of lading
Advantages
Speed: facilitates faster release of goods when original B/L is not transferred on time.
Convenience: reduces processing time and the need for original documentation.
Flexibility: it is useful in cases where the consignee needs to pick up the goods immediately.
Disadvantages
Security: Telex releases can be risky if not handled securely.
Trust: It requires a high level of trust between the shipper, consignee, and carrier.
Summary
The telex release bill of Lading allows goods to be released directly at the port of destination without the need to submit an original B/L.
However, the security of the goods is critical in international trade. A telex release bill of Lading can only be used under a high level of trust between the shipper, consignee and carrier.
