The paperwork involved in logistics is full of terms that are important to know to avoid penalties and other unpleasant surprises. On this occasion, we will focus on the meaning of Telex Release (TR) and Express Release (ER), two common terms in maritime cargo transportation. But, before delving into these terms, we will briefly review what the Bill of Lading (BL) is, as it is a document closely related to telex release and express release. Let’s go!
Bill of Lading, what is its relationship with Telex Release and Express Release?
When we talk about the Bill of Lading, we refer to the document that confirms that the goods sent by an exporter to an importer have been loaded onto a specific vessel. The BL is an essential procedure in international maritime transport and always takes the form of a physical paper document. In contrast, when this same bill of lading is issued in virtual format, it is called Telex Release or Express Release.
What does Telex Release mean in logistics?
The Telex Release is a document received by the final recipient of the merchandise and is issued by the carrier responsible for the logistics and delivery of the product. The TR is a virtual variant of the BL that is delivered digitally to the importer. For example, it can be a simple message attached to an email.
Telex releases are an important part of maritime transport, as they provide flexibility and convenience by allowing carriers to deliver goods quickly while still complying with international regulations.
Characteristics of Telex Release
Let’s see what its main characteristics are:
- The TR is one of the most widely used Bill of Lading formats in international maritime trade today.
- Thanks to the TR, the goods can be released without the need to present the original BL, saving time and streamlining the processes.
- It is issued by a carrier, with a copy of the Bill of Lading, stating that the goods have been loaded on board without requiring the signature of either party.
- Telex Release is an excellent alternative for the importer or exporter to simplify the logistics involved in a maritime transport operation and save shipping costs.
- This document does not certify ownership and does not include detailed information about the shipment.
- It is usually issued when time is limited and a complete BL cannot be created or obtained in time for delivery.
<H3> Advantages of Telex Release </H3>
The TR prevents the exporter or the logistics agent from having to deliver a physical document to the final customer, offering many advantages, especially in international trade operations that span from one side of the world to the other. These are the most interesting benefits of Telex Release:
▪ With the TR, the bill of lading does not stop while the importer waits for their original BL in physical format to arrive.
▪ It serves as a guarantee to the importer that all original documentation will be presented if necessary.
How is a Telex Release processed?
The process to obtain a Telex Release depends on the carrier and can range from an online request to the submission of physical forms.
Once obtained, the virtual bill of lading must be presented to the customs authorities before the cargo can be dispatched at the destination port.
<H2> And, what does the Express Release consist of? </H2>
In the case of Express Release, the original physical document does not exist, so not only are the shipping costs of the BL saved, but also those related to its generation.
This option is the fastest and the one that avoids the most expenses. However, it should be noted that the protection for a shipper sending with ER is much lower than with a BL or a TR, so it is only recommended for shippers and consignees who have complete trust, usually subsidiaries of the same company.
Features of Express Release
These are the main characteristics that define an ER:
- It is not necessary to present the original BL; in fact, the original physical document does not exist.
- It is an alternative to the traditional process of cargo or container release, which requires the generation and presentation of physical documents or digital copies before a load can be released.
- It is usually only used in two specific cases:
- When the merchandise is going to reach the hands of a recipient from our own company (therefore sending the BL does not depend on a payment).
- When the international transport operation does not incur a cost. For example, in the case of humanitarian donations from one country to another.
Advantages of Express Release
Mainly, ER is a process that provides much more agility and profitability than the traditional BL or TR method.
Key Differences Between Telex Release and Express Release
Although Telex Release and Express Release share the function of simplifying the cargo release process in maritime transport, there are key differences between them that are important to consider when choosing the most suitable option for each logistics operation.
Nature of the Document
The TR is an electronic version of the original Bill of Lading, meaning a physical BL exists, but its digital copy is sufficient for cargo release. In contrast, the ER does not require the existence of a physical BL at any point, as the entire process is handled digitally from the start.
Level of Security
The TR offers greater security compared to the ER because an original BL still exists and can be presented if necessary. On the other hand, the ER reduces protection for the exporter since there is no physical document to support the transaction, making it suitable only for operations between trusted parties, such as subsidiaries of the same company.
Associated Costs
Both options help save costs related to sending physical documents, but the ER goes a step further by also eliminating the costs of issuing the original BL. This makes it the most economical option, although it carries certain risks if there is no well-established business relationship between the parties.
Processing Speed
The ER is the fastest method as it completely removes the need to wait for the issuance or delivery of physical documents. The TR also speeds up the process compared to the traditional BL, but it involves the existence of an original BL, which may require some additional procedures.
Recommended Use Cases
The TR is ideal for international transactions that require a balance between security and speed, especially when there is no established business relationship between the parties. The ER, on the other hand, is more suitable for internal shipments within large corporations, humanitarian donations, or when there is complete trust between the exporter and importer.
Choosing between Telex Release and Express Release depends on factors such as the relationship between the parties, the urgency of the delivery, and the required security levels. At Partida Logistics, we offer personalized advice to help you select the best option based on your logistics needs. Our team of customs management experts ensures that each operation is carried out efficiently, securely, and in compliance with international regulations, optimizing time and costs for your company. Trust us to simplify and streamline your international shipments!
