Can I action a Telex Release if bill is consigned To Order…….??
Let me refresh your mind on What is a Telex Release and what is its purpose..
A telex release is simply a message that is sent by the shipping line or agent at load port to their office or agent at discharge port advising that the shipper or exporter has surrendered one or all of the original bills of lading that have been issued to them, and that the cargo can be released to the consignee shown on the bill of lading without presentation of any original bills of lading..
Why would the shipper or exporter request a telex release :
- the consignee at destination is a counterpart office of the shipper – example – if say DHL Global Forwarding is the shipper shown on the bill of lading and they are shipping some cargo to their office overseas, as there is no negotiation involved, they don’t require an original bill of lading at destination
- the shipper did not process his documentation in time and the ship that is carrying his cargo has already reached or reaching the destination and the original bills will not reach the consignee in time for them to clear before the expiry of free days
- some cases, an NVOCC operator might request for a telex release from the line so that they can issue their house bill of lading to their customer
As discussed in one of my previous articles about Ocean Bill of lading, Seaway Bill of Lading & Memo Bill of Lading, when a bill of lading is issued in Original, other than consigning the bill to a direct customer (Straight Bill of Lading), the shipper has the option to consign the shipment as below (in another of my articles about duly discharged bills of lading, I have discussed the permutations and the endorsements required for each of these instances) :
- To Order of a named Consignee
- To Order of a Bank
- To Order of Shipper (To Order)
When an Original Bill of Lading is consigned as above, they are generally issued with the intention of further negotiations and also with opportunities for resale/transfer of goods to someone else..
When issued as To Order or its derivatives above above, since a consignee has not yet been ascertained or there exists the possibility of transfer, the shipping line does not know who to release the cargo to..
Therefore, a Telex Release can be actioned, only once the bill of lading has been endorsed to someone tangible by the named Consignee, Bank or Shipper as consigned above..
What is your opinion and have you had any alternate experiences with the Telex Release on a To Order bill of lading..??