Shipping & logistics

Telex release and sea waybill

Ways of releasing cargo at destination without waiting for the original bill of lading to reach the buyer. With a telex release, the originals are surrendered to the carrier at the load port and the carrier instructs its destination agent to release the goods. A sea waybill is a non-negotiable transport document under which the goods are simply delivered to the named consignee. Both are fast, but the seller loses control of the goods, so payment should be secured beforehand.

Related terms

Bill of lading (B/L) B/L

The key document of sea transport, issued by the carrier to show that it has received or loaded the goods. It has three functions: a receipt for the cargo, evidence of the contract of carriage and, when issued “to order”, a document of title. Because whoever presents an original can take delivery, it is the backbone of letters of credit and cash-against-documents deals. A “clean on board” B/L shows the goods were loaded in apparent good order.

Documents against payment / Cash against documents (D/P – CAD)

A collection method in which the seller sends the documents of title – above all the original bill of lading – through its bank to the buyer’s bank, which releases them only when the buyer pays; it is governed by URC 522. It is cheaper than a letter of credit, but no bank guarantees payment: if the buyer refuses the documents, the goods sit at the destination port and the seller faces demurrage, return freight or a distressed sale. Suitable for trusted, long-standing relationships.

Explained in the trade handbook

Trade handbook