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All About Telex Release Bill of Lading (B/L)

Telex Release

A "Telex Release" allows the consignee to pick up goods without presenting the original bill of lading (B/L). It is initiated by the shipper (seller), who provides a letter of indemnity to the shipping company. The shipping company then informs the destination port agent via telex that the goods can be released to the consignee based on a faxed or electronic copy of the B/L.

What is a Telex Release B/L?

A Telex Release B/L, also known as a "Surrendered B/L," is a bill of lading or its copy issued by the shipping company with the words "Surrendered" or "Telex Release" indicated on it. In simple terms, it allows the consignee to receive the goods without presenting the original B/L, usually after payment has been received.

Key Scenarios for Using a Telex Release B/L

1. Cargo Arrives Before the B/L

With advancements in shipping and containerization, it is common for cargo to arrive at the destination port before the original B/L. Requiring the original B/L in such cases may lead to port congestion and increased costs. Telex Release can help avoid these issues.

2. Preventing Document Loss

In international trade, the original B/L must pass from the shipper to the consignee, which may risk being lost during transit. If lost, issuing a replacement B/L can take months and incur significant costs. Telex Release eliminates this risk.

3. House B/L Issues

Freight forwarders often issue House B/Ls, which require swapping with Master B/Ls at the destination. If the port only accepts Master B/Ls, the consignee may face delays. Telex Release simplifies this process, but note that some countries mandate the original B/L.

4. Correcting B/L Errors

Errors in the endorsement or instructions on the B/L can prevent consignees from proving their ownership. In such cases, a Telex Release can expedite the cargo release process.

Surrendered vs. Telex Release

While "Surrendered" and "Telex Release" B/Ls are often used interchangeably, there are subtle differences:

  • Surrendered B/L: Indicates that the consignee may collect the goods by proving their identity.
  • Telex Release B/L: Allows the consignee to pick up goods using a faxed or electronic copy of the B/L.

Conclusion

Telex Release B/Ls offer a convenient and efficient solution for avoiding delays, mitigating risks of document loss, and resolving errors. However, it is essential to understand the requirements and limitations in the relevant jurisdiction.