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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Release Order

Last updated: February 6, 2026
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A release order is an authorization issued by a shipping line or freight forwarder that allows the consignee, or their appointed agent, to collect goods from the port, terminal, or warehouse. It confirms that all required conditions, such as document submission, freight payment, and regulatory checks have been completed. Without a valid release order, cargo cannot be handed over, even if it has already arrived.

The release order is usually issued after the original Bill of Lading has been surrendered or electronically released and all outstanding charges have been settled. It contains key shipment details, including container numbers, cargo references, and the authorized pickup party. This document acts as a control mechanism, ensuring cargo is released only to the correct recipient and preventing unauthorized access.

In day-to-day logistics operations, the release order triggers the final stage of cargo movement. Once issued, the consignee can arrange pickup, delivery, or onward transport. Delays in obtaining a release order can result in storage charges or demurrage, making timely coordination essential.

Overall, the release order is a critical document in cargo delivery. It confirms ownership rights, supports secure cargo handover, and ensures that terminal operators release goods only when all commercial and legal requirements are met.

FAQ

Frequently Asked Questions about Release Order

Clear answers to the most common questions people have when learning about Release Order.

It is issued by the shipping line or freight forwarder once all documents and payments are completed.

Yes, some form of release authorization is required before cargo can be collected, whether physical or electronic.

Cargo cannot be picked up, which may lead to storage costs, demurrage, or delivery delays.