In international freight shipping, the type of bill of lading plays a crucial role in protecting the rights of both shippers and consignees. Among the various options, the Sea Waybill (SWB) and Telex Release bill of lading are two commonly used documents with distinct implications for cargo control.
The SWB, or ship's waybill, automatically transfers cargo ownership to the consignee once the vessel departs. In this arrangement, the recipient only needs a copy of the document to claim goods, leaving the shipper with no further control over the shipment.
In contrast, the Telex Release process requires shippers to submit a letter of indemnity to the carrier. The shipping company then notifies the destination port to release the cargo, with the consignee required to present a copy bearing the Telex Release stamp for collection.
Industry practice shows that shippers typically opt for Telex Release when outstanding payments remain, as this method maintains their control over the goods. Once full payment is secured, the SWB becomes the preferred choice - eliminating Telex Release fees while streamlining the cargo retrieval process for all parties.
From a cargo ownership perspective, the selection between SWB and Telex Release bills of lading directly affects the rights of both shipping parties and determines the efficiency of goods collection at destination.
