There are many factors to think about when it comes to ocean freight shipping. Paperwork, container shipping rates and cargo insurance are some, to name a few. Within the category of paperwork, it’s important to get to know perhaps the most important one: The Bill of Lading.
There are many different variations of the Bill of Lading, including the Telex Release and Express Release, that you should be familiar with.
When an import or export is carried out, the Bill of Lading can be in the form of a physical hard copy of the document known as the Original Bill of Lading or a virtual copy called the Telex Release.
If working with an Original Bill of Lading, this needs to be presented in order to be able to receive the merchandise at destination. In this case, the shipping costs of sending the document will have to be incurred. Whether this is paid by the importer or exporter will have to be negotiated between the two parties. If you’re dealing with the Telex Release, an Original Bill of Lading will still be generated. But presenting a copy of it will be enough to secure the release of your goods.
The exporter must send the the Bill of Lading to the importer indicating the choice to use either the Original Bill of Lading or the Telex Release. The final decision usually depends on how much the provider trusts that his clients will have made payment.
For a more detailed look at the Bill of Lading fields, you may give our guide on How to fill in a Bill of Lading a read. You may also want to check out our post on the differences between a house and master Bill of Lading.
The Express Release is another variation of the Bill of Lading. In this case, there is no original physical document of the Bill of Lading. In this case, you not only save the shipping costs, but also the derivatives of its generation. The Express Release is the fastest and cheapest variation of the Bill of Lading. However, it is only recommended for shippers and consignees with trusting relationships as the Express Release doesn’t offer as much protection for the shipper as the other options.
"The problem with these costs is that they’re often impossible to predict and are thus hardly ever considered when analyzing and comparing ocean freight rates"
Klaus Lydsal, vice president of operations at iContainers