Telex Release is a sea freight industry term for the process of releasing cargo from a ship to shore. It is an important part of maritime import, export and shipping activities. Telex Release helps to ensure that cargo is released easily and quickly, helping to save time and effort for all parties involved.
What is a Telex Release?
A Telex Release is a process that allows the consignee to receive goods without the shipper sending the original Bill of Lading. When the original Bill of Lading isn’t required, this method provides a faster and more convenient way for the consignee to take delivery of the cargo.
The role of Telex Release in international freight forwarding
To issue a surrendered bill, the shipper must first return the original Bill of Lading—typically exactly three copies—and request a Telex Release to obtain the surrendered bill. In essence, a Telex Release is the process used to create a surrendered bill. This is done by the shipping line (or freight forwarder) at the origin “calling” its agent at the destination to authorize the release of the goods. The shipper then receives a surrendered bill, which contains information similar to the original Bill of Lading, but clearly marked with the word “Surrender.”
In some cases, an NVOCC may require a Telex Release so that they can issue their own house Bill of Lading to their customer. Many shippers and exporters who follow the procedure above often use the term “Telex Express” instead of Telex Release.
Learn about Telex Release B/L in import and export activities
Instances where the Shipper or Exporter will request a Telex Release:
- The shipper at destination is the shipper’s partner office. If Forwarding Global is the shipper shown on the bill of lading. They ship to their office overseas, they do not require an original bill of lading at destination;
- The shipper failed to process his documents in time. The ship carrying his goods has reached or will reach its destination. And the documents will not reach the consignee in time;
- In some cases, the NVOCC may request a telex release. So that they can issue their house bill of lading to their customer.
Why do I need a Telex Release?
For example: Company A exports 1 container of dry tea from Hai Phong to Company B in Taiwan. After customs clearance, Company A must wait for the ship to depart before the shipping line can hand over the original B/L. Because the distance is quite short, the shipping time is quite short, about 2-3 days.
In order for Company B to receive the goods, Company B must have the original Bill from the exporter. Therefore, Company A will have to send the original Bill to Company B via UPS, FedEx, etc. via air. Although it is express delivery, 2-3 days is too short a time for the original B/L to reach Company B.
Suppose Company B receives the documents 5 days after the goods arrive at the port, then they cannot get the goods and have to pay DEM/DET fees. Not to mention that the faster you request the original Bill to be delivered, the higher the delivery fee will be.
=> To resolve this issue, both Companies need to come up with a Surrendered Bill.
Advantages and disadvantages of Telex Release
Advantages of Telex Release Bill:
- Receiving the goods will be done faster, there is still a surrendered bill of lading to add to the contract procedure if any.
- In particular, in the case where the agent has notified the consignee or notify party of the goods, the shipper still has the right to hold the goods. This is an advantage that the normal form does not apply.
Disadvantages of Telex Release B/L:
- Costly, usually the fee will be from 25 to 30$/bill;
- The exporter is the one who will pay the fee when using bill surrendered.
Difference between Telex Release and Telex Express
Many people know what Telex Release B/L is but sometimes they are still confused between Telex Release and Telex Express. To help users use these two forms correctly, let’s find out the difference:
Technically speaking
Telex releases are only used when it is a straight bill of lading release. Transaction invoices, purchase orders, and sea shipments are not in this form. Some lines allow telex releases based on agreements or on bill of lading orders that are based on original bills of lading when verified in the bill of lading.
Payment related
Telex Express will be used to ensure payment when there are no other documents related to the bank. Meanwhile, Telex Release is usually distributed to the sender’s office address so it does not focus on payment.
In terms of speed of goods release
Normally, both forms have faster delivery speed than the regular type. When compared, the Telex Express form will be released faster. In case of urgent delivery, the recipient needs to use it as soon as possible, they will use this form.
