What is Telex Release and how is it different from Sea Waybill and Original Bill of Lading?

One of the important questions in sea transportation is whether to choose Original Bill of Lading, Sea Waybill or Telex Release for delivery of goods?

These terms may seem similar, but they have important differences in terms of control over the goods, how the cargo is delivered, and the ability to transfer rights. Choosing the wrong document can delay the release of the cargo or create commercial risk between the seller and the buyer.

What is an Original Bill of Lading?

A Bill of Lading or B/L is one of the most important shipping documents. A bill of lading typically serves three primary roles: a receipt for the goods by the carrier, evidence of the contract of carriage, and, in a negotiable form, a document relating to the right of possession and transfer of the goods.

A negotiable bill of lading can be transferred to another party through an endorsement and is particularly useful in transactions where control of the goods or financing is important. For this reason, the Original B/L is usually more important in transactions where the parties do not yet have a high level of commercial trust, the goods may be sold en route, or banks and letters of credit are involved in the transaction.

What is a Sea Waybill?

A Sea Waybill is also a document for the carriage of goods and receipt of cargo by the Carrier, but it has one very important difference: A Sea Waybill is not a negotiable document of ownership of goods.

The recipient is already named and there is usually no need to provide a physical copy of the Original B/L for delivery. As a result, the documentation process can be faster and simpler. This document is more suitable for transactions where the parties have an established relationship and sufficient trust and there is no need to transfer rights to the goods along the way.

What is Telex Release?

Contrary to popular belief, Telex Release is not usually a new type of bill of lading; rather, it is a mechanism for releasing goods without physically sending the Original B/L to the destination.

In a typical scenario, the original copies of the bill of lading are surrendered to the Carrier or its agent at the origin. The destination office or agent then receives authorization to release the cargo without presenting the physical Original B/L if other conditions are met.

International shipping companies also use Telex Release as a way to reduce the reliance on the transmission of a physical copy of the bill of lading; however, its acceptance is subject to the conditions of the Carrier and the destination.

The main difference between Original B/L, Sea Waybill and Telex Release

• Original B/L: The original copy of the document is of great importance and in negotiable cases, control of the document can be linked to control of the delivery of the goods.
• Sea Waybill: The recipient is known from the beginning and the document does not have the same negotiable capabilities as a Negotiable B/L.
• Telex Release: Usually, the Original B/L is issued first, but after surrender at the origin, an electronic or system release order is sent to the destination.

Therefore, Sea Waybill and Telex Release should not be considered completely identical.

When is Original B/L a better choice?

If the seller has not yet received full payment and wants more control over the delivery of the goods, or the transaction is being conducted by letter of credit, the use of an Original B/L may be more appropriate. However, the requirements of the bank, the sales contract, and the regulations of the destination should be reviewed before choosing a document type.

When is a Sea Waybill appropriate?

Sea Waybill is mostly used for ongoing transactions between companies where there is sufficient trust between them and the buyer is known.

Its benefits include eliminating the risk of mailing the original bill of lading, reducing the possibility of shipment delays due to the original B/L not arriving, faster delivery, reduced printing and courier costs, and reduced risk of documents being lost.

When is Telex Release used?

Suppose the ship is approaching its destination but the Original B/L has not yet reached the buyer. International shipping of the document may take several days, during which time the costs of holding the goods will increase.

If the terms of the transaction allow, the Shipper can request a Telex Release after coordinating with the Carrier and completing the Surrender procedure. However, this method should not be chosen without reviewing the payment terms, because after the release of the goods, the seller’s control leverage may be reduced.

Status of documents in Iranian port operations

The bill of lading is also recognized as a fundamental document within the framework of Iranian legal and port operations, and the Ports and Maritime Organization has addressed the bill of lading and instructions related to the delivery of goods in its regulations and specialized topics.

نحوه Release هر محموله باید با Carrier، نماینده کشتیرانی، فورواردر و رویه مقصد همان Shipment کنترل شود؛ زیرا همه خطوط و مقاصد الزاماً شرایط یکسانی برای Telex Release ندارند.

Conclusion

Original B/L is more suitable when documentary control and portability are important. Sea Waybill can be faster and simpler for direct and trust-based transactions. Telex Release is also a solution for releasing the cargo without physically transferring the Original B/L after Surrender and Carrier conditions are met.

Before choosing any, the payment method, sales contract, banking requirements, destination rules, and ship arrival time should be reviewed together.

FAQ

Is a Telex Release the same as a Sea Waybill?
No. The structure and basis for issuing the two are different.

آIs an original document required for a Sea Waybill?
The nature of a Sea Waybill is such that, unlike a Negotiable Original B/L, it is usually not necessary to present a negotiable original for delivery of the goods.

Are all shipments Telex Release capable?
No. Carrier, destination, payment method and contract terms must be checked.

Main sources: Maersk, Hapag-Lloyd and the Ports and Maritime Organization.

© All material and intellectual property rights of this article are reserved for Aria Amwaj Sahel Lian.