Delivery Order (DO) for Sea Cargo in Bangladesh: How Release Actually Works

Cargo does not leave a Chattogram terminal because it has arrived; it leaves because someone with authority has told the terminal to release it. That instruction is the delivery order, usually shortened to DO. Importers who have been through the process once tend to remember it as the step that took longer than they expected and cost more than they had budgeted. Understanding what the DO is, who issues it, and what the line wants in return makes the step predictable.

What a delivery order is and what it is not

A delivery order is a written release, issued by the shipping line or its local agent, that authorises a named party to take delivery of specific containers or cargo. It is not the bill of lading, and it is not a customs release. It says only that the carrier is content for the cargo to leave its custody. Customs must separately be satisfied, and the terminal or depot will separately want its own charges settled.

Because the DO is a control instrument, the carrier will issue it only after it is satisfied about two things: that the person asking is entitled to the cargo, and that the carrier’s own charges have been paid. Everything else in the process follows from those two conditions.

The documents the line asks for

Requirements vary between lines and depend on the type of bill of lading, but the normal package looks like this. Your clearing agent will confirm the specifics for your carrier.

• The original bill of lading, endorsed. If the bill is a negotiable one made out to order, the endorsement chain matters. See our article on straight, order and switch bills of lading.
• Or a release without the original. A telex release or a sea waybill lets the line deliver against identification instead of paper. Our guide to the telex release and sea waybill versus bill of lading explains when each applies.
• Proof of identity and authority. Trade licence and import registration details for the consignee, and an authority letter if a clearing agent is acting on the importer’s behalf.
• The bank endorsement for LC shipments. Where the bill is consigned to the issuing bank, the bank must endorse it in favour of the importer once payment terms have been met.
• Payment proof for carrier charges. These typically include destination handling and any freight still outstanding if the shipment was freight collect.

Why freight terms change the story

Under freight prepaid terms the seller paid the ocean freight at origin, so the line has nothing to collect on that account. Under freight collect terms the line will not issue a DO until the freight is paid at destination. Our article on prepaid versus collect freight explains how the choice is made, and it is the reason two shipments arriving on the same vessel can have very different DO timelines.

A second, frequently overlooked, factor is that the local charges shown on the line’s invoice are set by the carrier or its agent, not by the seller. If you agreed a price as FOB, expect to pay local charges at destination before the DO is released. The article on terminal handling charges and the piece on hidden charges in importing from China show the categories to ask about. We deliberately do not put numbers here, because the invoice you receive is what governs.

The sequence from vessel arrival to gate-out

The order of events is worth having in your head, because delays hide in the gaps between steps.

• The vessel arrives and the line or its agent issues an arrival notice, giving the estimated time of discharge and the charges due.
• The importer’s agent lodges or updates the import general manifest data and prepares the bill of entry (see pre-arrival processing).
• Original bills are presented to the line, or the release is confirmed, and carrier charges are paid. The line issues the DO.
• Customs assessment and duty payment are completed; the examination happens if the file is selected (see green and red channels).
• The DO and customs release are presented at the terminal or depot, terminal charges are paid, and a gate pass is issued.
• The cargo is taken out, and the empty container must be returned within the free time allowed by the line.

Notice that the DO is not the last step. Many importers celebrate a DO and then discover that the customs and terminal steps are still ahead.

Where delays come from

The most common cause is that the original bills of lading are not in the agent’s hands on the day the vessel arrives. Sometimes they are still travelling by courier from the supplier; sometimes the supplier is holding them until the balance payment clears. Our article on what to do when cargo arrives before the original bill of lading deals with this in detail.

The second is a mismatch between the bill of lading, the manifest and the bill of entry, which forces a correction before the line will release. The third is unpaid or disputed carrier charges: if you dispute a line item, the line may still insist on payment before releasing the DO and refund afterwards, so the argument becomes a cash-flow problem. The fourth is simple calendar friction: the line’s office is closed for a holiday and the vessel arrived the day before.

Each of these is cheaper to solve before arrival than after. Container storage, demurrage and detention start counting once free time ends, and free time typically starts at discharge, not at the moment your DO is in hand. See free time at Chattogram explained.

Practical habits to keep the DO from becoming a bottleneck

Ask your supplier for the draft bill of lading and confirm the release method a week before sailing. Ask your agent to request the arrival notice as early as the line will issue it and to list every charge on it. Keep the trade licence and authority letter ready in a form the line accepts. If the shipment is LC-backed, chase the bank endorsement as soon as documents are accepted rather than when the vessel has already arrived. And if you are new to the process, follow the walkthrough in our step-by-step customs clearance guide so you know where the DO sits in the whole chain.

A comparison: three ways cargo can be released

The release method changes what you must physically do, so it is worth seeing the three common arrangements side by side. The differences below are the general pattern; your line’s own rules always prevail.

• Original bill of lading. The seller sends the signed originals, usually by courier, to you or your bank. The line delivers only against surrender of an original. Strongest control for the seller, but the slowest, because the cargo can be waiting for the couriered paper.
• Telex or express release. The seller surrenders the originals at the origin office and the line authorises release electronically. It removes the courier delay, but it also means the seller has given up the paper, so most sellers insist on full payment first.
• Sea waybill. No original exists. The line delivers to the named consignee on proof of identity. Fast and simple, and suited to trusted, repeat trading, but it gives the seller no paper to hold as security.

For a first order with a new supplier, the release method is a negotiating point as much as a logistics one: the more the seller trusts you, the easier the release; the more you trust the seller, the more you may be willing to accept the slower, more controlled option.

Questions to put to your agent before the vessel arrives

A clearing agent who is asked the right questions early can prevent most delivery order problems. Ask which shipping line or local agent will issue the DO and where their office is. Ask what the line’s office hours and cut-off times are for DO issue, because a DO requested late on a Thursday may not appear until the next working week. Ask whether the line requires a fresh authority letter each time or accepts a standing one. Ask for the arrival notice as soon as it is issued and read every charge on it before payment.

Finally, ask what happens if an original bill is late. A good agent will describe the fallback, such as a letter of indemnity or a bank guarantee where the line accepts one, and will be honest about its cost and the line’s discretion. Do not assume such fallbacks are available; treat them as a last resort rather than a plan.

A delivery order is really a receipt for having settled every party that stands between the cargo and the gate, so the way to speed it up is to settle those parties earlier. If you would like this handled for you, see our services, China sourcing and buying agent option, browse the shop, or contact us and ask for a quote built around your needs.