Use of telex release in shipping

Telex release in shipping refers to releasing shipments to the consignee at the destination port without the original bill of lading. In such cases, the shipper mails the carrier with the consignee’s details and cargo specifications. These details are then verified before releasing the cargo to the consignee. Telex release helps reduce the cost of sending a physical bill of lading and improves supply chain agility. Let’s learn more about telex release in shipping.

Define telex release in shipping.

Telex release (TR) is a method used in international shipping to transfer the title of goods from the shipper (exporter) to the consignee (importer) without the need to present original paper documents. Traditionally, when goods are shipped, the shipper issues original shipping documents, including bill of lading, to the consignee or their agent. However, in cases where the consignee wishes to take possession of the goods before the original documents arrive, a telex release is utilized.

In a telex release, the shipper instructs the shipping line or their agent to release the goods to the consignee upon receiving specific instructions via telex, fax, email, or electronic data interchange (EDI). These instructions typically include the bill of lading, container number, payment confirmation, or other necessary conditions. It is an electronic substitute for the physical surrender of original shipping documents, allowing for faster and more efficient customs clearance and delivery. It simplifies the process for both the shipper and consignee, especially in cases where the consignee is located far from the port of arrival or requires immediate access to the goods.

Use of telex release in shipping

Telex release in shipping can be initiated for various reasons on behalf of the shipper, NVOCC, or the consignee. Although only the shipper mails the telex release, other stated shipping parties can only request one.

• By the shipper — If the shipper faces challenges in sending the original bill of lading to the consignee within a given time frame, they can surrender the bill of lading to the origin port and opt for telex release. This helps avoid the hassle of sending the bill to the destination port and prevents disruptions caused by delays in the timely arrival of the bill. In cooperation with the consignee, the shipper can email the shipping carrier and offer a telex release for shipping.
• By the NVOCC — A non-vessel operating common carrier may also require an early release of shipment in uncertain times. This can be done by asking the shipper to mail a telex release, which avoids the extra time required to send a physical copy of the bill of lading.
• Organizational shipping — If the shipper and consignee belong to a similar organization, it is common to eliminate the submission of a bill of entry and instead choose telex release in shipping. This occurs if the consignee is part of the same organization but overseas.

Advantages of telex release

There are various advantages of a telex release in shipping. Let us learn more about it.

• Supply chain agility — Telex release accelerates cargo clearance and delivery by eliminating the time-consuming requirement of presenting original paper documents at the destination port. Instead, cargo can be released to the consignee promptly upon receipt of the necessary instructions via electronic communication.
• Flexibility — Telex release offers flexibility for both exporters and importers. Exporters can quickly release cargo for shipment without the logistical challenges of sending original documents. At the same time, importers can promptly take possession of their goods, even if they are far from the port of arrival.
• Cost savings — Telex release reduces administrative costs associated with handling, couriering, or mailing original shipping documents. Shippers and consignees can reduce shipping costs by eliminating the need for physical document transportation.
• Risk management- It mitigates the risk of original documents being lost, delayed, or tampered with during transit. This helps minimize the potential for disputes or complications in cargo clearance and delivery, enhancing the overall reliability and security of the shipping process.
• Boosts global trade — Telex release simplifies documentation requirements and expedites cargo release procedures, facilitating smoother international trade transactions. It also supports the timely movement of goods across borders, enhances supply chain efficiency, and promotes global trade relationships.

These are a few benefits of telex release in shipping. It allows shippers and consignees to easily ship and procure goods globally.

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