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The Difference Between Freight Release and Telex Release

The Difference Between Freight Release and Telex Release
Author: Admin
Written: 07/10/2017 8:24pm
Updated: 06/24/2018 12:57pm

The Difference Between Freight Release and Telex Release

If you’ve ever shipped cargo, you’re already familiar with the term bill of lading. It’s essentially a contract between you, the shipper, and the freight carrier to move goods from one destination to another. It also serves as a receipt for the cargo and often acts as proof of ownership. 

But to collect those goods, you must have a release. This release comes in one of two forms: freight release or telex release.

Freight Release

A freight release is an endorsement on a bill of lading. It states that the freight charges for the cargo have been paid and the goods can be released on arrival. If not on the bill of lading, you’ll then receive the freight release as a separate document. It serves the same purpose and should be presented at the pier to release your goods. 

Telex Release

A telex release is another form of endorsement used to release your cargo. But it’s usually only issued when the original bill of lading isn’t sent with the actual shipment — or at least doesn’t arrive at the discharge port with the carrier.

The following circumstances could require a telex release:

  1. Surrender of the bill of lading. In some cases, you may need to surrender the original bill of lading at a port other than the discharge port, such as the port of loading. You’ll then need a telex release to claim your shipment.
  2. Failure to process documentation. Sometimes, the ship carrying your cargo is already en route to the discharge port when the original bill of lading is issued to you. Chances are good that the necessary documentation won’t reach the port in time to clear, so the telex release would be issued in its place.
  3. Change of destination. You may purchase goods from one country but then find another buyer to purchase those goods in a country other than the original shipping destination. You then agree to a change of destination. Because the new bill of lading won’t likely arrive with the shipment, a telex release would be issued to release the goods to the new buyer. 

Simply put, the release — be it freight or telex — provides instructions from the port of loading to the port of discharge on how to release the cargo. If you’d like to learn more about freight or telex release, please feel free to contact us today. We’d be more than happy to answer your questions.