Several Cargo Release Methods in International Sea Freight

International logistics is an indispensable and critical part of foreign trade transactions. Proper control over international logistics allows you to retain effective control of your goods and avoid the risk of losing both goods and payment.

Therefore, it is essential to fully understand the different cargo release methods in international logistics. On one hand, this helps guarantee cargo safety. On the other hand, you can deliver goods to customers promptly by selecting suitable release methods, which accelerates payment collection and prevents cash flow issues.

Below we focus on several cargo release methods in international sea freight and their differences:

Telex Release (TLX)Definition: Short for telegraphic release. The carrier sends bill of lading information to its destination office via electronic messages. The consignee may exchange documents and pick up goods with the telex-released copy bearing the telex release stamp and the telex release letter of indemnity. The shipping line instructs its destination agent to release cargo without the original bill of lading. The consignee can take delivery upon verifying identity as the named consignee.

Advantages: Convenient, fast and secure (avoids risks of lost original B/L). Disadvantage: The shipper loses control of the cargo.

Ocean Bill of Lading (B/L)

Definition: Original bill of lading issued by the shipping line. It serves as a document of title, enabling the consignee to take delivery of goods. It can be transferred by endorsement and is an essential shipping document. The shipper obtains the original B/L from the freight forwarder, sends a scanned copy to the consignee to arrange payment. After payment, the shipper couriers the full set of original B/L to the consignee, who exchanges the original documents for a delivery order to pick up goods. Ocean B/L is widely adopted in shipments.

Advantages: Allows the buyer to take delivery smoothly with simplified procedures and lower costs

SWB (Sea Waybill)

Definition: Short for Sea Waybill, a type of cargo release document. Once an SWB is issued, the title of goods transfers from the shipper to the consignee. The consignee may collect goods directly. No original document is required for cargo pickup, and no telex release fee applies. This release method is suitable for trusted business partners.

Advantages: Fast document issuance, quick cargo collection, simple and efficient. Disadvantages: The shipper generally loses control over the goods.

Application Scenarios:

1. Issue Sea Waybill after full payment has been received.

2. For multinational corporations: when a Chinese subsidiary purchases goods for its overseas parent company, SWB is used for faster and simpler cargo collection.

   

   
   

3. Destination Cargo Release

4. Definition: It means releasing cargo at the destination port. This method is rarely used and only applies to special scenarios: if the bill of lading is lost, the shipper may issue a letter of indemnity to the shipping line or agent to authorize cargo release to the consignee. It can also be adopted when goods arrive at the port before the issuance of B/L; the shipper can apply for cargo release with a letter of indemnity to enable early pickup.

5. Application Scenarios: This method is generally not used unless special circumstances arise.

6. Differences

7. SWB is a sea waybill, somewhat similar to telex release. Once a Sea Waybill is confirmed, the agent will release goods directly to the consignee after the vessel arrives at the port.

8. For telex release, even if goods have been at the port for a long time, the agent will not release cargo to the consignee until receiving written release instructions from the shipper.

9. The key difference between SWB and B/L is that SWB is not a document of title, while B/L serves as a document of title. B/L can be transferred by endorsement (for order B/L), whereas a sea waybill is non-transferable, and only the named consignee stated on the SWB can collect the goods.

10. SummaryAll trade transactions boil down to exchanges between buyers and sellers, a deal of cash for goods. There will be no risks with all the above cargo release methods once full payment is received from the buyer.