Telex Release Letter of Indemnity

A Telex Release Letter of Indemnity is a written guarantee document issued by the shipper (usually the exporter) to the carrier (shipping company) in international trade when the goods have been loaded on board but the original bill of lading has not yet been issued, or has been issued but not yet circulated. Its core function is: the shipper requests the carrier to release the goods to the designated consignee via Telex Release, i.e., without requiring the original bill of lading for cargo pickup; the carrier notifies the destination port agent to release the goods through electronic message. At the same time, the shipper undertakes to bear full liability for any losses suffered by the carrier due to the telex release (such as erroneous release, third-party claims, etc.). Usage scenarios are mostly: short voyage, original bill of lading circulation slower than cargo arrival, or high trust between buyer and seller, payment already received but quick pickup needed. Precautions: 1) The letter of indemnity must be stamped with the shipper's official seal, clearly stating the consignee, vessel name/voyage, bill of lading number, etc.; 2) The carrier usually only accepts its own format of letter of indemnity; 3) After telex release, the shipper loses control over the goods; if payment has not been received, the risk is extremely high; 4) Difference from 'Sea Waybill': telex release still requires a letter of indemnity and is based on the bill of lading, while a sea waybill is non-negotiable and requires no letter of indemnity.