Telex release vs sea waybill: a telex release starts as a bill of lading whose originals are surrendered at origin; a sea waybill is non-negotiable from the start and never has originals.
What is a telex release?
A telex release (also called a surrendered bill or "B/L surrendered") is a way of collecting ocean cargo without paper originals. A bill of lading is issued, but instead of couriering the originals to the buyer, the shipper hands the full set back to the carrier at origin. The carrier's origin office then tells its destination office, once by telex and today by system message, that the cargo may be released to the consignee without presentation of an original.
How it works
- The shipper (or its forwarder) surrenders all the originals issued, usually three, to the carrier or NVOCC at origin, or asks for them not to be printed
- Carriers commonly ask the shipper to sign a letter of indemnity asking them to release without the originals and indemnifying them for doing so. Hapag-Lloyd's form, for example, requires a named consignee and states that "to order" is not acceptable
- The origin freight charges are paid, and the release is entered against the bill
- At destination the consignee still pays the destination charges, clears customs and collects a delivery order; the telex only replaces the paper
Original bill, telex release or sea waybill
| Release type | Originals | Negotiable | Who controls release |
|---|---|---|---|
| Original bill of lading | Issued and surrendered at destination | Yes, if made out to order | Whoever holds an endorsed original |
| Telex release | Issued, then surrendered at origin (or not printed) | No longer in practice | The shipper, until it surrenders the originals |
| Sea waybill (express release) | None | No | The shipper; the carrier delivers to the named consignee on identification |
When to use it and when not to
- Use it when the buyer has paid, or the seller trusts the buyer, and the cargo will arrive before couriered originals would
- Don't use it on a shipment financed by a letter of credit or sold while afloat: surrendering the originals gives up the document control the negotiable bill exists for
- Don't surrender before you're paid: once the telex is sent, the named consignee can collect the goods
On an NVOCC booking there are two bills, and each can be released separately: the carrier releases its master bill to the NVOCC's agent, and the NVOCC releases its house bill to your consignee. Airlift's ocean freight customers choose an original bill, a telex release or an express (sea waybill) release when booking.
Related terms
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