What is an Express Release and what are its

advantages and disadvantages..??

This was a question one of the readers of this blog asked..
An Express Release as it name implies is used mostly in express
situations such as :
when the shipper and consignee are part of the same group
and there are no negotiations required between the two either
directly or via bank for release of the cargo
the shipment doesnt involve any bank and the shipper doesnt
really need to submit original bill of lading to secure his
payment
when the shipper doesnt have the time to print the original
bills and courier the same to the consignee
the shipper is a freight forwarder and he wants to issue a
house bill of lading to his customers, hence he takes an
express release or a waybill instead of original master bill of
lading from the shipping line
Advantages of an Express Release :
the consignee doesnt need to wait for or surrender an original
bill of lading in order to secure release because if it is an
Express bill, it is manifested as such so cargo release is
immediate
shipper saves on courier or postage costs as he can send the
copy of the Express bill by electronic means (email/fax)
most useful for group companies who have offices at the pol
and pod and among trusting business partners
save on bill of lading stationery

Disadvantages of an Express Release :

it is not negotiable and cannot be exchanged for money, it is
just a receipt of cargo
release is not as secure as an original bill of lading and there
could be incidences of fraud
from a liners perspective, the disport agent doesnt need to
look for any original bills or wait for any documentation in
order to release the shipment, which in some cases is
problematic if the load port for any reason wants to stop the
release

Original Bills of Lading are defined as the standard for international shipping and
represent the basic process for which other variations are built on. When the freight is
laden on board at origin, the original bill of lading is produced and provided to the
shipper. The shipment cannot be released to the consignee at destination as long as the
shipper holds that original bill of lading. At some point, the shipper will release their
hold on the cargo, usually once the shipper has been paid, and the original is sent to
the importer by courier, so it can be presented to the shipping company at destination
to secure the release of the freight. Its a mouthful, but this simple document flow is in
place to protect various parties involved in the transaction of the shipment by
controlling when and to whom the freight can be released. However, it can be a slow
process in a time when instant communication is the norm.
In the case of Telex Release Bills of Lading, the original bills of lading are still issued
to the shipper when the freight is laden on board. Once the shipper has decided to
release their hold on the cargo, they will surrender the original bill of lading directly
back to the office of the shipping company that issued them, rather than sending them
to the consignee via courier. The origin office for the shipping company will then
electronically send a message to their destination office to inform them that the original
bill of lading has been surrendered. This event eliminates the need for the importer to
provide an original bill of lading at destination to secure freight and can speed up the
release of freight at destination and reduce courier fees.
The Express Release Bill of Lading, also known as a seaway bill, is the quickest
variation of a bill of lading and is used in cases where the shipper has decided in
advance to release their hold on the cargo immediately. In this case, an original is never
issued. When the freight is laden on board the shipper will just receive a copy of the bill
of lading for their reference. The shipper is not required to surrender anything back to
the shipping company and neither is the importer, so freight is released as soon as it is
available. It also eliminates the need for any courier fees, since document copies can be

sent electronically by fax or email.

Now that you know the differences, it bears the question of which variation to use. For
the importer, quicker is generally better, but as the originating party, the shipper
dictates how they want the bill of lading to be issued. Each variation of the bill of lading
provides a different level of protection for the shipper, and shippers will pick the one
that they are most comfortable with. In addition, the specific nature of some shipments,
like those moving on a letter of credit, may require that you use original bills of lading.
However, as the importer, it does not hurt to ask your shippers if it is possible to use
one of the quicker variations. On numerous occasions, I have noticed shippers will use
original bills of lading because that is just how they have always done it, but a simple
question from the importer was enough to get them to reevaluate the process.
As the importer, the more you can streamline the process and get away from
using original documents the better. You will experience less time and
frustration in the end.