Trade & Economic Glossary

Delivery Order (D/O): When Can You Collect Import Cargo?

A D/O is issued only after the original B/L is surrendered or a telex release is confirmed and charges are paid. Master vs house D/O, and what delays cost.

Contents
  1. Key takeaways
  2. What is a Delivery Order (D/O)?
  3. When and by whom is a D/O issued?
  4. What is the difference between a master D/O and a house D/O?
  5. How does a D/O differ from a bill of lading?
  6. How does a D/O relate to customs acceptance of the import declaration?
  7. What are the steps to get a D/O?
  8. What does a late D/O cost?
  9. What are the most common mistakes?
  10. FAQ
  11. Can you collect cargo without a D/O?
  12. Does a telex release mean no D/O is needed?
  13. Who pays the D/O fee?
  14. Can you collect goods on a copy of the master D/O?
  15. Sources

You can collect import cargo once a Delivery Order (D/O) has been issued, which happens after the original bill of lading (B/L) is surrendered or a telex release is confirmed and freight and destination charges are settled. The D/O is the carrier’s or forwarder’s instruction to the terminal or bonded warehouse holding the goods to hand them to a named party. A vessel arriving does not mean you can drive the cargo away that day.

Key takeaways

  • A D/O instructs the storage facility to release cargo; it plays a different role from the bill of lading, which represents rights to the goods.
  • It is issued only after the original B/L is recovered (or a telex release is confirmed) and freight and destination charges are paid.
  • When a forwarder is involved, there are two layers: a master D/O from the carrier to the forwarder and a house D/O from the forwarder to the importer.
  • D/O release and customs acceptance of the import declaration are separate steps, and a late D/O can push the container past free time into demurrage.

What is a Delivery Order (D/O)?

A Delivery Order is a document issued by the ocean carrier, its agent or a freight forwarder that tells the terminal, container yard, CFS or bonded warehouse holding the goods to release them to a named party. The bill of lading represents rights to the cargo; the D/O is the working instruction used at the point of physical release, once those rights have been checked.

Korea’s Supreme Court has held that sea cargo must be delivered to the holder of the bill of lading in exchange for that bill (Supreme Court of Korea, Case 2024Da270860, decided 14 August 2025). That is why the carrier side first recovers the original B/L or confirms a surrender to identify the rightful receiver, then issues the D/O, and the custodian releases the goods against it.

When and by whom is a D/O issued?

A D/O is issued after the cargo reaches the discharge port, the original B/L is recovered or a surrender is confirmed, and freight and destination charges are settled. It comes from whoever issued the B/L you hold: the shipping line (or its agent) for a carrier B/L, or the forwarder that issued your house B/L.

Typical conditions are:

  1. The original B/L is surrendered, or a surrender / telex release is confirmed.
  2. Any freight payable at destination (freight collect) and destination charges such as THC and the D/O fee are paid.
  3. Other requirements and their order vary by carrier terms and port, so check the arrival notice.

A telex release still needs a D/O. The release only removes the need to present the original B/L; it does not replace the release instruction to the custodian. See Telex Release: Can You Get Cargo Without the Original B/L? for the details.

What is the difference between a master D/O and a house D/O?

When a forwarder is involved, the D/O comes in two layers. Korea’s Supreme Court described the master D/O as the document the actual carrier, having been paid its freight, issues to the forwarder so the forwarder can take the cargo out, and the house D/O as the document the forwarder issues to the importer, after the importer’s payment has been settled, so the importer can collect the goods from the bonded warehouse (Case 2024Da270860).

In the same judgment the court found that a master D/O naming the forwarder as consignee and notify party cannot serve as a D/O for the importer. A bonded warehouse had released goods on a copy of the master D/O without checking a house D/O. The court held that the lower court was wrong to deny the liability of the forwarder that passed the copy to the importer, and of its CEO, and sent that part of the case back.

In practice, an importer holding a carrier (master) B/L collects against the carrier’s D/O, and an importer holding a forwarder’s house B/L collects against the forwarder’s house D/O. LCL cargo, where several shippers share one container, usually moves through a forwarder or consolidator, so the house D/O route applies. The structure of the two bills is covered in HBL vs MBL: Which Bill of Lading Is Yours?.

How does a D/O differ from a bill of lading?

A B/L is issued at shipment and evidences the contract of carriage, the receipt of the goods and rights to them, while a D/O is issued after arrival, once conditions are met, and instructs the storage facility to hand over the goods. Holding the B/L alone will not get a container out of the terminal; you surrender it and receive a D/O first.

ItemBill of lading (B/L)Delivery order (D/O)
When issuedAt shipmentAfter arrival, once conditions are met
Issued byCarrier, or the forwarder that issued the house B/LCarrier or its agent, or the forwarder
Main roleEvidence of carriage contract, receipt, rights to the goodsInstruction to release the goods from storage
ConditionGoods shippedOriginal B/L recovered or surrender confirmed, charges paid

If the consignee and notify party on the B/L are confused, it also becomes unclear who should receive the D/O. See Notify Party vs Consignee: Which Name Goes on the B/L? for how the two fields differ.

How does a D/O relate to customs acceptance of the import declaration?

The D/O is the carrier side’s permission to release; acceptance of the import declaration is customs’ permission to clear, and the two are separate. To take foreign goods out of a Korean bonded area into the country you need the declaration accepted, and to get the goods from the custodian you need the D/O.

You cannot leave cleared goods sitting indefinitely either. Article 157-2 of Korea’s Customs Act requires the owner or the person who brought in goods that sit in a bonded area designated by the Korea Customs Service, and whose import declaration has been accepted, to remove them within 15 days of acceptance, unless the customs office approves an extension. Filing deadlines are covered in Korea Import Declaration: How Many Days After Bonded Entry?, and duty timing for bonded storage in Bonded Warehouse Korea: When Do You Pay Duty?.

Two blank documents, a rubber stamp and a set of keys on a desk

What are the steps to get a D/O?

Usually you receive the arrival notice, surrender the B/L or have the telex release confirmed, settle the charges and then receive the D/O. Once the import declaration is accepted, you present the D/O to the custodian and take the goods out.

  1. Receive the arrival notice.
  2. Surrender the original B/L or have the release confirmed.
  3. Pay freight and destination charges, including the D/O fee.
  4. The carrier, its agent or the forwarder issues the D/O.
  5. After customs accepts the import declaration, present the D/O to the custodian and remove the goods.

Customs clearance needs its own documents, such as the commercial invoice and packing list. Check the D/O fee and THC in the carrier’s or forwarder’s published tariff, your quotation or the arrival notice. For how THC works, see What Is THC? Terminal Handling Charges and Who Pays.

What does a late D/O cost?

If a late D/O keeps the container in the terminal past its free time, demurrage applies; if the container is returned late after it leaves the terminal, detention applies. The number of free days, when the clock starts and the daily rate all depend on the carrier’s tariff or your contract.

The figures below are an illustrative assumption. Say free time is five days, counted from the day after discharge.

  • Discharge: 25 October → free time: 26–30 October
  • D/O received and cargo collected on 29 October: no extra charge
  • D/O delayed, cargo collected on 2 November: three days of demurrage (31 October–2 November)

Always confirm the counting method and rates in the carrier’s tariff and the arrival notice. The difference between the two charges is explained in Demurrage vs Detention: Which One Are You Paying?.

What are the most common mistakes?

The most common mistake is assuming a telex release lets you collect cargo without a D/O. Another is surrendering the B/L or paying charges late, so the D/O slips and free time runs out in the meantime.

  • Handing over the original B/L late, which delays the D/O.
  • Assuming a telex release removes the need for a D/O.
  • Mixing up the consignee and notify party, so documents do not match.
  • Not checking destination charges such as the D/O fee and THC in advance, which holds up release.
  • Waiting only for a carrier D/O on house B/L cargo, or trying to collect on a copy of the master D/O.

FAQ

Can you collect cargo without a D/O?

In principle, no. The custodian releases goods against a D/O, and the D/O is issued only after the original B/L is recovered or a release is confirmed and charges are paid.

Does a telex release mean no D/O is needed?

No. A telex release only removes the need to present the original B/L. You still need a D/O as the release instruction to the custodian.

Who pays the D/O fee?

It is normally a destination charge paid by the importer (consignee). The amount differs by carrier and forwarder, so confirm it from the tariff or quotation at the quoting stage.

Can you collect goods on a copy of the master D/O?

That is not the proper route. Korea’s Supreme Court found that a master D/O naming the forwarder as consignee cannot serve as the importer’s D/O, and in a case where goods left on such a copy it ruled against denying the forwarder’s liability (Case 2024Da270860). For house B/L cargo, get the house D/O.

Sources

About the author

· SILENSEA

A hands-on trade practitioner who writes about export/import operations, tariffs and logistics from day-to-day work. Available for export/import consulting and for connecting businesses with overseas buyers.

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