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The Four Cargo Release Methods in Sea Freight

International logistics is an indispensable step in foreign trade transactions. Among them, there are several cargo release methods for sea freight, each representing different risk factors. Understanding the common cargo release methods in international sea freight can ensure cargo safety on one hand, and timely delivery of goods to customers through different methods on the other, which means early ollection of payments and avoids difficulties with capital turnover.


The commonly used cargo release methods in sea freight are Telex Release, Ocean Bill of Lading (B/L), Sea Waybill (SWB), and Destination Port Release.


TELEX RELEASE

International logistics companies send bill of lading information to the destination port shipping company via electronic messages or electronic information. The consignee can collect the cargo with a fax copy of the "telex released bill of lading" stamped by the consignee company or with identity documents. The shipping company notifies the destination port agent to release the cargo without requiring the original bill of lading, only proof that the person is the consignee and authorized for telex release, in order to collect the cargo.


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A telex released bill of lading refers to a bill of lading, or copy thereof, issued by the shipping company or its agent marked "Surrendered" or "Telex Release."

Advantages

    Improves customs clearance efficiency and reduces trade risks.
    Avoids loss of documents.
    Lower warehouse logistics costs than FBA
    Higher flexibility than FBA, such as returns and replacements

Disadvantages

The shipper can’t control the cargo rights. If the shipper uses telex release before payment, it is very likely that the consignee will refuse to pay for the cargo. To mitigate risks, we advise you to avoid choosing telex release until payment has been received.


OCEAN BILL OF LADING (B/L)

Ocean Bill of Lading is a traditional cargo release method, referring to a bill of lading signed and stamped by the carrier, master or agent, noting the date of issuance. The original bill of lading is proof of cargo ownership. It is marked "Original" and has the carrier's official signature and stamp with the date of issuance. The consignee can collect the cargo, and the bill of lading is negotiable. This is an important document.

The shipper/consignor obtains the original bill of lading from the international logistics company, scans it to the consignee, and arranges payment. The shipper/consignee sends the full set of bills of lading to the consignee via courier. The consignee collects the cargo with the original bill of lading and the delivery order. This cargo release method is commonly used in international ocean shipping.

Advantages

    Allows consignee to collect cargo immediately, streamlining the process.
    Lower risk for releasing cargo, no additional document costs, saves on expenses.

Disadvantages

This cargo release method is not suitable for short sea shipping, as it can easily lead to delayed deliveries and extra demurrage charges for the importer.


SEA WAYBILL (SWB)

SWB is the abbreviation for Sea Waybill. It is also called the sea transport note or sea cargo note. The sea waybill is a non-negotiable document proving the sea cargo transportation contract and that the carrier has received the cargo or loaded the cargo onboard. This document is not a proof of ownership and cannot be transferred, so it is clearly non-negotiable.

SWB collection doesn’t require the original or telex release fees. The consignee can collect the cargo directly at the port of destination with the arrival notice or identification documents received. This cargo release method can be used for trusted companies.

Advantages

    Fast billing and collection, simple and quick
    Low risk for the consignee

Disadvantages

Generally can’t control the cargo, high risk for the carrier/shipper. Once a seaway bill is issued, the shipper no longer retains title to the cargo.

Application Scenarios:

    Generally used to collect cargo after payment has already been received in the trade transaction.
    Used by Chinese subsidiaries to help foreign group parent companies procure goods and facilitate collection.

DESTINATION PORT RELEASE

This means direct release of the cargo. It is rarely used in Sea Freight, and is applicable in the following special circumstances:

    The bill of lading is lost, and the shipper provides a letter of indemnity to the shipping company or authorizes release of the cargo to the consignee.
    The bill of lading is issued later than the cargo arrival time, so port release is used before receipt of the original to allow early collection of the cargo

In Sea Freight, using the appropriate cargo release method for the suitable scenario can improve cargo security and avoid trade risks.With Francesco Parisi Group’s more than 200 years of global shipping experience and strong logistics network, PGS CBEL served millions of Chinese and global Cross-Border E-commerce sellers. We have multiple stable and fast sea, land and air logistics routes to provide you one-stop FBA SeaFreight logistics services.