The container has reached the port, but the buyer cannot collect it. In plastic scrap trade the most common cause is not physical but a gap on paper: the bill of lading or the telex release has not been released yet. This article explains the three types of transport document, how they differ and what to watch for to avoid waiting.
What does a bill of lading do?
In ocean freight the bill of lading combines three functions:
- Evidence of the contract of carriage: it records the terms between the shipping line and the shipper.
- Receipt for the goods: it shows the line received the stated containers under the stated seals.
- Document of title (for an original bill): whoever holds an original can claim delivery of the cargo.
The third function matters because it ties payment to delivery: by holding the originals or the release instruction until paid, the seller keeps control of the cargo.
Three options: OBL, telex release and sea waybill
Original bill of lading (OBL)
The line usually issues a set of three originals. To collect the cargo, the buyer presents one original to the carrier's agent at destination. Originals travel by courier, which takes time and carries a risk of loss; if the courier is late, the cargo cannot be released even though the vessel has arrived.
Telex release (surrendered B/L)
The shipper hands the issued set of originals back to the line at origin (surrender). The line then sends an electronic instruction to its agent at destination: “release this cargo to the consignee without originals.” The courier time disappears and the buyer can start clearance without paper.
Sea waybill (SWB)
A non-negotiable transport document from the outset; no originals are printed. The cargo is delivered to the named consignee on proof of identity. It is the fastest option but gives the seller no payment security, so it is mostly used with prepayment or in long-standing, trust-based relationships.
| Original B/L | Telex release | Sea waybill | |
|---|---|---|---|
| Paper original needed? | Yes, presented at destination | No (surrendered at origin) | No, never printed |
| Negotiable? | Yes (if made out to order) | No, once surrendered | No |
| Speed | Depends on courier | Fast | Fastest |
| Payment security for seller | High | High (if released after payment) | Low |
| Typical use | Letters of credit, new relationships | Advance + balance payment trade | Prepayment, intra-group shipments |
Telex release and the payment calendar
A common structure in plastic scrap trade is an advance with the proforma and the balance before arrival. The seller gives the telex instruction after receiving the balance. In the flow Green Day Trade follows, the final payment is requested 10 days before ETA and the SWIFT copy is sent to the seller, so the telex is ready before the vessel berths.
Where do costs come from when the telex is late?
- Free time: the line and the port allow a period of free waiting after arrival. It varies by contract and port.
- Demurrage: the line's daily charge while a container stays at the port beyond free time.
- Detention: the charge for keeping the container beyond the allowed time after it leaves the port, until it is returned empty.
- Storage: the port operator's storage fee.
For waste cargo there is one more gate: without the telex release (final BL) the environmental inspection cannot be booked. A late telex delays the inspection and therefore the entire delivery.
Checklist to avoid waiting
- State in the contract which transport document will be used (OBL, telex or SWB).
- Get the BL draft as soon as the vessel sails and complete customs approval before arrival.
- Track the ETA weekly; update the payment date when transshipment delays occur.
- Make the final payment at least 10 days before ETA and send the SWIFT copy to the seller the same day.
- Confirm the telex instruction has reached the line's agent at destination; don't rely only on the seller saying it was sent.
