Cargo release process: Why it’s important and how to do it with Maersk Spot

When your goods arrive at their destination, the process of releasing cargo starts.

In simple terms, it refers to the authorization process of getting goods that have arrived at a port or terminal to be released to the importer or consignee. This is essentially the final hurdle any freight shipment needs to clear before reaching its final destination. It typically involves:

• Documentation review: This ensures that all the necessary paperwork, such as bills of lading and customs declarations, is in order and compliant with regulations.
• Inspection: Depending on the shipment and regulations, customs officials might also physically inspect the cargo itself.

For a successful cargo release, you must show relevant documents that certify your goods’ origin, value, quantity, quality, and type. These requirements vary by country, mode of transport, and kind of commercial operation.

Once both these steps are cleared, the cargo is released for pick-up or onward transportation.

But, there’s more.

The cargo release procedure has a well-defined operational sequence. Buckle up for rigorous protocols to ensure the transfer of goods from the waters to the final destination. It’s not straightforward, but with some preparation, you can carry it out smoothly.

There are two parts to it, both equally critical to the cargo release procedure:

1. Customs clearance for releasing cargo

Cargo release and customs clearance go hand-in-hand. Your goods must receive clearance from the customs authorities at the destination port before the freight can be withdrawn or released to you or your logistics partner.

To get clearance and keep your shipment moving, you need to furnish a specific set of documents that prove your cargo’s compliance with the customs laws in the destination country. While requirements vary, some standard customs documents include:

• Commercial invoice: Gives information on the cargo’s value and acts as a contract between the buyer and seller.
• Packing list: An itemized list of your shipment’s contents.
• Bill of lading (B/L) or Cargo receipt: A receipt issued by the carrier confirming they have taken possession of your goods.
• Customs entry form: Declares shipment details like description, HS classification, quantities, and value for custom duty calculation.
• Certificates of origin: Proves where the goods were manufactured to determine applicable duties and taxes.

Depending on your shipment type, you may need to provide additional papers like licenses, permits, or cargo-specific certificates.

Paperwork is a sensitive part of the customs clearance process and also the one where most errors occur. Opt for Maersk’s customs clearance services to get expert help.

2. Destination port procedures

Besides your customs documentation, all the formalities occur at the destination port. The typical cargo release process looks like this:

• Arrival and documentation: The vessel arrives at the port. Simultaneously, the port and customs authorities will start an exhaustive documentation review to ensure compliance with legal and commercial requirements.
• Cargo inspection: After documentation approval, the cargo is physically verified. Authorities visually and dimensionally inspect the goods to ensure correspondence with the provided information (weight, type of goods, classification, etc.). Any discrepancy will delay the cargo clearance process.
• Payment of duties: Any applicable duties or penalty fees are paid to the customs.
• Submission/release of documents: This is where essential documents like B/L are submitted. As we'll discuss later, there are different modes/methods of doing this.
• Release to consignee: The carrier then releases your cargo from customs to proceed with other formalities.

Demurrage & detention (D&D)

You are usually given a certain number of days to complete all these procedures and return your container to the carrier. These are known as free days. Once your free days are over, you have to start paying D&D charges per diem as a penalty.

If you want more days to complete the cargo release procedures, Maersk gives you the option to buy freetime extensions for spot shipments. It saves you the hefty D&D costs.

READ MORE: Shipping with Maersk Spot: D&D and Freetime

Depending on your convenience and level of control over the shipment, you can choose any of the following:

Ocean bill of lading (OBL)

This is the traditional method of using the original B/L document as a receipt, contract of carriage, and proof of ownership for the cargo. The consignee (receiver) must present the original, physical B/L to the carrier at the destination port to collect the cargo. This ensures the cargo isn’t released to any unauthorized party.

While it allows immediate collection, it may cause delays for short sea shipments.

Sea waybill (SWB)

Unlike a B/L, a sea waybill is not a document of title. It serves as a receipt for the cargo but doesn’t guarantee ownership. This method is often used for lower-value cargo or when the seller doesn’t require strict control over release. The consignee must present a copy of the SWB and proof of identity to collect the cargo. It’s swift and simple, but presents a higher risk for carriers/shippers.

Telex or Electronic release

This method is faster than using the original B/L. Here, the shipper surrenders the original B/L at the origin port. Then, a telex (nowadays, usually an email) containing the B/L details is sent to the consignee at the destination port. Upon receiving the Telex Release, the carrier releases the cargo. This is useful when the original B/L won’t arrive with the shipment on time. However, it carries a higher risk since the physical B/L is not presented. It results in efficiency, reduced risks, and flexibility.

Cargo release with Maersk Spot

If you need to release cargo to a consignee, you usually have to hand over the OBL to our counters. But we also allow you to do it online by signing an agreement to a website-printed copy of the B/L. This makes the process much faster and paper-free.

Here’s a step-by-step guide to release cargo on Maersk:

1. Step 1: Log in to your Maersk dashboard.
2. Step 2: Go to the Exports Overview tab and click on the concerned B/L number. It’ll take you to the shipment details page.
3. Step 3: On the right side, you’ll see ‘Booking Actions’. Click ‘Electronic Cargo Release’.

Note: Your company must have a proper agreement to print Original B/Ls online. And any cargo release can only be made to the named consignee on the document.



4. Step 4: Next, you need to provide the consignee's name and address.





5. Step 5: Once submitted, we will email you a copy of your release request. You can also send a copy directly to the consignee by providing their email so they can take the spot shipment delivery quickly and hassle-free.

Also see: A step-by-step tutorial showing the cargo release process on Maersk.

To use telex on Maersk, you need to meet some conditions:

• B/L is negotiable, i.e., allows transfer of ownership.
• B/L is issued by Maersk.
• B/L is not already surrendered.
• The requester is the party who submits shipping instructions.
• The requester has a web agreement in place to print B/L.
• Electronic cargo release is permitted in the destination country, i.e., place of delivery.

A delivery order is a physical document released by Maersk at the destination port to the consignee or their agent. It allows for the movement of goods through the port procedures.

By consignee

An added party, i.e., a consignee, can directly request a delivery order for the forwarder/agent. A consignee can review pre-delivery conditions — such as payment status, haulage, etc. — and then add a release to the party. Here are the steps:

1. Log in to your account.
2. In the ‘Delivery Order’ widget, enter the shipment details and click on ‘Request Delivery Order’.
3. To add a ‘Release to Party’, click the ‘+’ icon next to ‘Release to Party’.
4. To search for the party you want to add as the ‘Release to Party’, enter their Trading Name, Country, and click ‘Search’.
5. If the party is not found, you can add them by filling in their details and clicking ‘Submit’.
6. Once the party is selected and submitted, the request will be sent to Maersk’s customer service team for processing.

By third party

Maersk also allows self-service delivery order requests by third-party providers like forwarders. They’ll need to present the letter of authority (LOA) and payment receipt. Here’s the process:

1. Log in to Maersk and select the ‘Request Delivery Order’ option.
2. Check the task status to ensure that all necessary documents are in order.
3. Validate the payer to collect charges and detention & demurrage (D&D).

   Please note: D&D payer update is not available for the US imports yet. However, it is available for most other countries.

4. Upload the applicable Letter of Authorization (LOA).

   Please note: Document upload is not available for the US imports yet.

5. Select the required haulage mode: ‘Carrier Haulage’ or ‘Merchant Haulage’.
6. Click on ‘Continue’ to proceed.
7. Update the haulage details, including the release instructions and release date.
8. Check for any detention & demurrage details.
9. Provide the email address where you want to receive the final Delivery Order (DO).
10. Review your request to ensure all details are accurate.
11. Click on ‘Submit’ to send the request for processing.

1. Does spot shipping require different cargo release procedures?

   No, the general cargo release procedures (documentation review and inspection) remain the same for spot and contract shipments. However, the urgency associated with spot shipments might make faster release methods (like telex release) more attractive, even with potential risks.
   
   

2. Who is responsible for cargo release in spot shipping?

   The responsibility for cargo release typically falls on the consignee (receiver) or their appointed agent. In spot shipments, clear communication between the shipper, consignee, and any intermediaries is crucial to ensure all the necessary documents are readily available for a smooth release process.
   
   

3. How can I minimize cargo release delays with spot shipping?

   Research the destination port’s customs procedures and potential delays. Ensure all documentation is accurate and complete. Communicate clearly with the carrier and customs broker to expedite the process.
   
   

4. How can I speed up cargo release for a spot shipment?

   Ensure all documentation is accurate and complete before the shipment arrives. Communicate clearly with the consignee and relevant authorities regarding arrival times and any special requirements. Consider using specialized services for handling customs clearance.