Telex release can be best understood as a message sent by an agent or shipping line from the origin to the office at the customs destination. The motive behind the message is to manifest that the shipper has already surrendered the Original Bill of lading.
Once the customs get the surrendered letter from the shipper then they would release the product without any sort of physical presence of the Original bill of lading before such release. In simpler words, it states that Telex Release signals that OBL is not as important as it otherwise would be.
If the OBL cannot be mailed to the destination before the release of a commodity without the incurring storage charges, then only a telex release is prepared. Since the payment is secured from the buyer then using telex release can save on mailing costs. In a simple sentence, it would be known as an essential message that provides instructions from the load agent to the port agent.
Anyhow, telex release only happens in the absence of a physical presence of Original Bill of Lading.
What is OBL (Original Bill of Lading)?
OBL is best defined as a physical paper document of a straight bill of lading or order bill of lading issued to the shipper at the port of lading by the carrier. For any normal shipping procedure, the consignment is only forwarded to the destination upon the surrender of one or more of these original bills of Lading.
Although there is no such original bill of lading, it is primarily known as a document that is called either “order bill of lading or straight bill of lading.”
As mentioned Bills of Lading are classified into three major categories:
- Straight bill of lading
- Order bill of lading
- Seaway bill of lading
*seaway bill of lading has no direct connection or associated with OBL or telex release. It acts and expressed as ‘Express Release’.
- Straight Bill of lading is utilised when the bill of lading is issued or transferred in an original format to the named consignee. One of the best and important parts of this bill of lading is that there is no involvement of negotiation. The cargo wouldn’t be transferred to a consignee other than the one mentioned in the document.
- Original bill of lading format would mention and consign as “to the order of shipper” or “to order” or “to order of ABC bank”. Although this bill if negotiable and can be transferred to someone else as well.
- Seaway bill of lading unlike other two bills of lading, this is issued to a “named” consignee, although there are no originals. Similar to the straight bill of lading, it is not negotiable or transferable by any means or forms. It can be used as evidence of the carrier contract not act as a document of title.
Types of air cargo
Difference between telex release and express release
Telex Release is a type of message which is sent by the agent. It is sent from the origin to their agent or office at the destination for acknowledgement. It states that the shipper has surrendered the issued Original Bill of Lading. This will allow the cargo to get released to the consignee without the physical presence of the Original Bill of Lading before release. A Telex Release is utilised if the Original Bill of Lading is not mailed at the destination on time.
An Express Release Bill of Lading stands for no Original Bills of Lading. When the bill of lading is not issued or requested to be issued. When the shipper’s instructions were sent to the shipping line. Express Release is a request when the shipper does not need to hold onto the Original Bill of Lading to secure payment for the cargo. Since there are no Original Bills of Lading ever created. It also has nothing to be mailed to the destination for release of the cargo.
The difference lies in the originality. A Telex Release is a physical OBL (Original Bill of Lading) which is issued, printed, and surrendered. However, Express Release, NO Original Bill of Lading is found.
When does a shipper/exporter request a telex release?
When the consignee at the destination is a counterpart office of the shipper, and no negotiations are involved – thus, there is no need of an Original Bill of Lading at the destination.
When the shipper does not process all his documents in time, and the ship carrying his goods is about to reach or has reached the destination. In that case, the Original Bill of Lading will not reach the consignee in time to clear before the expiry of free days.
A rare case when an NVOCC operator requests for a telex release from the line. This aids the agent in issuing his house bill of lading to his customer.