An In-Depth Analysis of Delivery Order Fees and Their Functions

In the complex international shipping process, there's a crucial, often overlooked step: the delivery order (BOL). Today, from the perspective of an international shipping service provider, we'll delve into the delivery order and its associated fees to help you navigate the complexities of international shipping.

What is a delivery order?

A delivery order, or DO, is a crucial document in international shipping. It's a written instruction issued by a freight forwarder or carrier to the consignee or their designated agent, authorizing them to collect the goods.

It's essentially a "release order," certifying that the holder is authorized to receive the goods. A DO is often associated with a bill of lading, but once the goods arrive at their destination, it replaces the BOL as the direct proof of collection. Without a DO, goods can become stuck at ports or warehouses, leading to delays and additional costs. A Delivery Order (DO) is an electronic or paper release order issued by a shipping company, freight forwarder, or airline, informing the terminal that the cargo can be released.

It typically includes:

1. Vessel name, voyage number, and bill of lading number

2. Container number/seal number

3. Consignee, number of packages, and gross weight

4. Whether any local charges have been settled

Purpose of a Delivery Order

Cargo Collection Document

A DO is a formal document used by the consignee to collect cargo from the warehouse or terminal. It ensures that the cargo is delivered to the authorized consignee and prevents misdelivery or fraud.

Closing the Transportation Process

After cargo arrives at its destination, the DO, as the final step in the transportation process, marks the transition of cargo from in-transit status to a deliverable state, completing the entire transportation cycle. It simplifies the cargo collection process, particularly for less-than-container loads (LCL) or full-container loads (FCL), by converting bill of lading information into actionable instructions.

Expense Management

DOs often include a Delivery Order Fee (DOF), a fee for processing documents and services, which helps carriers cover administrative costs. 

Tracking and Transparency

Delivery Orders (DOs) provide a clear record of the status of goods, enhancing supply chain visibility and making it easier for businesses and sellers to manage inventory and delivery times.

Legal Effect

A DO is legally binding and a crucial component of a transportation contract, protecting the legal rights of both carriers and consignees.

Efficiency

By providing clear, standardized instructions, a D/O allows consignees to retrieve goods efficiently, minimizing delays and demurrage.

During the delivery order processing process, you may incur a fee known as the Delivery Order Fee (DOF). This fee, typically charged by the freight forwarder or carrier, is a common fee in international shipping and covers the costs of preparing, issuing, and managing a DO.

The Delivery Order Fee (DOF) is a service fee charged by a freight forwarder or forwarder when issuing a delivery order. It typically covers the following costs:

Document processing and issuance costs

Port or warehouse coordination fees

System operation and data synchronization services

Customer Service Support

This includes manual processing, system maintenance, and communication costs. The DO fee is typically a one-time fee, varying by carrier and mode of transport, ranging from $10 to $50 USD. While it may seem like a minor surcharge, ignoring the DO fee can lead to cargo being detained, resulting in higher demurrage or storage charges, impacting overall costs. The specific amount of the DO fee varies depending on factors such as carrier, mode of transport, cargo type, and destination, and is generally clearly stated in the contract of carriage or quotation.

The DO fee is merely an "issuance fee" and does not include terminal handling charges (THC), document charges (DF), or demurrage and container charges (D&D). During peak seasons and port congestion, D&D charges can be the largest expense if the DO is delayed.

What is the difference between a delivery order and a bill of lading?

A bill of lading is evidence of the contract of carriage and is used for the transfer of title and letter of credit transactions, while a DO is a specific order to pick up the goods, typically issued after the goods arrive at their destination. Simply put, a bill of lading is a "document of title" and a DO is a "document of action."

Can a DO be submitted electronically? Or does it need to be an original, stamped copy?

95% of ports worldwide accept Telex Releases or electronic DOs, but:

Brazil, Argentina, and Nigeria still require the original document to be stamped;

The United States, the European Union, and Southeast Asia only require electronic releases.

Possible In-Depth Questions and Answers

Is the DO Fee mandatory?

Yes, the DO Fee is a common fee in international transportation and is usually borne by the consignee as part of the transportation service. Unless otherwise specified in the transportation contract, the consignee must pay this fee according to the service provider's requirements.

What factors influence the DO Fee?

The DO Fee is affected by a variety of factors, including but not limited to the transportation distance, cargo weight and volume, transportation method (e.g., sea freight, air freight), the destination country's customs and tax policies, and the service provider's pricing strategy.

How can Chinadivision help resolve delivery order issues in international transportation?

As a professional international transportation service provider, Chinadivision has extensive international transportation experience and a dedicated team. We provide a full range of international transportation services, including but not limited to cargo packaging, customs declaration and inspection, transportation tracking, and the issuance and management of DOs.

Is the Delivery Order Fee a hidden fee?

The Delivery Order Fee is not a hidden fee; it's an industry standard fee that covers document processing, manual review, and system overhead. In international shipping, every document must be verified and issued by a dedicated person to ensure security.

How can Chinadivision help you with your Delivery Order?

Professional Team

We have an experienced international shipping team familiar with the customs policies and shipping regulations of various countries, and can provide you with professional advice and services.

Global Network

We have established long-term and stable partnerships with many well-known carriers and freight forwarders around the world, providing you with a global transportation network.

One-Stop Service

From cargo packaging and customs clearance and inspection to shipment tracking and DO issuance, we provide one-stop international shipping services, making your international shipping more convenient and efficient.

Transparent Pricing

We adhere to the principle of transparent pricing. All fees are clearly listed in the shipping contract or quotation, avoiding hidden charges and extra fees.

Delivery orders and their costs in international shipping are complex, but choosing a professional international shipping service provider like Chinadivision will easily resolve these issues. Whether you're looking for a reliable international shipping provider or want to optimize your existing logistics processes, Chinadivision can provide you with professional support. Contact us today to learn how to improve supply chain efficiency and reduce operating costs through our Delivery Order service.