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Showing posts from September 18, 2016

Differences between 3PL and 4PL

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We realized increasingly within supply chain industry the use of different level of PL terminology as part of their supply chain operation. And recently we keep hearing 3PL and 4PL terminologies more and more. Before we look into what may differentiate 4PL from 3PL we need to understand the PL terminology. 1PL would be the owner of the cargo, this could be the consignee or the shipper and they within the organization control the distribution type, origin and destination. 2PL involves the carriers to provide transportation services for the cargo owners supply chain operation. 2PL companies could be the carriers, trucking and rail companies.     The use of 3PL started around 1970s and before that the communications were only between the shippers and the carriers. With the intermodal companies getting into the picture and became part of shipper’s operation by accepting shipments from the shippers and offering them to the rail carriers they started to create 3PL

Telex Release

In some instances a shipper or exporter may surrender one or all of the original bills of lading that have been issued to them at the load port.   Based on this surrender, they will instruct the load port agent to advise the discharge port agent that the cargo covered under the surrendered bills of lading may be released to the consignee shown on the bill of lading without presentation of any original bills of lading.   A telex release is simply a message conveying this instruction from the load port agent to the discharge port agent.   The shipper or exporter would request a telex release under below circumstances: The consignee at destination is a counterpart office of the shipper – example – if say DHL Global Forwarding is the shipper shown on the bill of lading and they are consigning some cargo to their office overseas, as there is no negotiation involved, they don’t require an original bill of lading at destination.   The shipper did not process his