• July 18, 2024
Electronic Bill of Lading
In a significant move towards transforming the landscape of international trade, the FIT Alliance, comprising BIMCO, DCSA, FIATA, ICC, and Swift, has announced the launch of the “Declaration of the electronic Bill of Lading.” This declaration represents a crucial step towards making global trade more efficient, reliable, sustainable, and secure, primarily through the widespread adoption of electronic Bills of Lading (eBLs).
 
The Current State of International Trade Documents
 Every year, ocean carriers issue approximately 45 million bills of lading, a vital trade document in the shipping industry. However, these documents remain largely non-standardized and paper-based, necessitating physical exchanges between participants. This outdated practice results in slower transactions, increased administrative costs for cargo holding and document processing, and heightened fraud risks due to the absence of digital authentication systems.
 
Surprisingly, as of 2022, a mere 2.1% of bills of lading and waybills in the container trade were electronic, despite the potential benefits of end-to-end digitalization, starting with eBLs. In contrast, the dry bulk sector has shown promise, with four of the world’s largest mining companies already conducting around 20% of their iron ore shipments using eBLs.
 
 
Unlocking the Potential of eBLs
 A McKinsey study estimates that if eBLs were to achieve 100% adoption in the container sector alone, it could unlock $30-40 billion in global trade growth by reducing trade friction. Additionally, it could save approximately 28,000 trees each year and significantly reduce carbon emissions by eliminating paper usage.
 
The Commitment to Universal eBL Adoption
 The FIT Alliance emphasizes that a universal eBL will benefit all stakeholders in the global supply chain, whether in bulk shipping or container shipping. Their common statement highlights the importance of achieving widespread adoption of a standards-based eBL, emphasizing the significance of this declaration in shaping the future of shipping.
 
 
“This declaration is a significant symbol of our joint dedication to shape the future of shipping. Transforming document exchange through a globally applicable eBL will accelerate trade digitalization to the benefit of customers, banks, customs, government authorities, providers of ocean shipping services, and all other stakeholders.”
 
 
A Crucial Next Step in Digitalization
 With many of the technical and legal obstacles to universal eBL adoption already being addressed, the FIT Alliance calls for a clear commitment to digitalization from all participants in international trade. By signing the FIT Alliance eBL Declaration, stakeholders can publicly express their readiness for change and their commitment to collaborate in driving digitalization within their respective industries.
 
 
The Formation of the FIT Alliance
 The FIT Alliance was established in 2022, uniting BIMCO, the Digital Container Shipping Association (DCSA), the International Federation of Freight Forwarders Associations (FIATA), the International Chamber of Commerce (ICC), and the Society for Worldwide Interbank Financial Telecommunications (Swift). Together, these organizations share a mission to standardize the digitalization of international trade, ultimately revolutionizing how global trade operates.
 
Implications and Opportunities of the FIT Alliance eBL Declaration
 The FIT Alliance’s eBL Declaration carries profound implications for the world of international trade, offering a host of opportunities that have the potential to reshape global commerce.
Implications:
  1. Global Trade Efficiency: The widespread adoption of electronic Bills of Lading (eBLs) promises to streamline international trade operations significantly. This efficiency improvement will lead to quicker transactions, reduced overhead costs, and smoother trade flows across borders.
  2. Risk Mitigation: Digital authentication systems embedded within eBLs will serve as a robust defense against fraud and illicit activities, bolstering the security and trustworthiness of international trade transactions.
  3. Environmental Impact: The transition from paper-based to electronic documentation not only offers a boost to efficiency but also contributes to environmental sustainability. Reduced paper usage translates into fewer trees felled and lower carbon emissions, aligning trade practices with broader global sustainability goals.
  4. Economic Growth: The McKinsey estimate of unlocking $30-40 billion in global trade growth underscores the economic potential of adopting eBLs. This growth can stimulate economic activities and present new opportunities for businesses and industries.
Opportunities:
  1. Digital Transformation: Businesses involved in international trade can seize this moment to embark on a journey of digital transformation. By embracing eBLs, they can modernize their operations and position themselves as leaders in the evolving trade landscape.
  2. Technological Innovation: Companies in logistics, shipping, and technology sectors can explore innovative solutions to support the adoption of eBLs. This includes blockchain-based platforms, advanced authentication methods, and data analytics tools to enhance the security and efficiency of eBL processes.
  3. Collaboration and Synergy: The call for commitment from the FIT Alliance encourages collaboration among stakeholders in the supply chain. Partnerships and cooperative efforts can drive innovation, create new business models, and improve trade-related services.
  4. Market Expansion: As trade processes become more efficient, businesses may find it easier to expand into new markets. The removal of trade barriers can attract investments and foster international economic growth.
  5. Sustainability Initiatives: Companies adopting eBLs can align their practices with sustainability objectives, appealing to environmentally conscious consumers and partners. Sustainability-focused marketing and responsible business practices can differentiate them in the market.
  6. Regulatory Advancements: As the adoption of eBLs gains traction, governments and regulatory bodies may introduce supportive policies and standards. This will further facilitate the shift towards digitalization in international trade.
 

In conclusion, the launch of the “Declaration of the electronic Bill of Lading” by the FIT Alliance represents a monumental step towards a more efficient, secure, and sustainable future for international trade. As stakeholders across the industry come together to commit to digitalization, we can expect to witness a transformative shift in the way global trade operates, benefiting all involved parties and the planet itself.

The most trustable and reliable source for Trade Data.

TradeData.Pro is a reliable and trustworthy source of trade data proudly made in Singapore, a country known for its stable political climate and trade-driven economy. Presented by Commodities Intelligence Centre, a government-linked company and a joint venture of Zall Smartcom, SGX, and GeTS, TradeData.Pro has received positive feedback from the market since its launch in 2018 for its extensive coverage, affordability, and fast response. The platform has been awarded the Singapore Quality Class in 2020 and the Stevie Award Gold in 2021.

Traditionally, obtaining critical data to reveal trends, identify market opportunities, track competitors, buyers, and suppliers, and better understand the potential of the supply chain has been a challenge. However, the detailed shipment information that is part of government import and export filing requirements does exist and forms the core of global trade. TradeData.Pro has gathered and packaged this information as business intelligence, which helps companies understand the flow of goods across borders and features the world’s largest searchable trade database. TradeData.Pro reviews, standardizes, and cleans data and delivers it in an intuitive format, making it easier for businesses to access.

Businesses interested in staying updated on Vietnam, the hottest industry lately, can access all relevant information on the TradeData.Pro platform. They can find the exact product they’re interested in by checking out the trade database demo at https://tradedata.pro/asia-trade-data/vietnam-import-export-data/. To learn more about accessing new markets, visit https://tradedata.pro/trade-database-demo/.

Additionally, businesses can check out this article to learn how to use TradeData.Pro to access Global Trade Markets: https://blog.tradedata.pro/v3-new-upgrade-of-world-leading-global-trade-data-platform/.  To understand how TradeData.Pro works, watch the video below or visit  https://www.youtube.com/watch?v=tITfUvjs6Gc

Leave a Reply

Your email address will not be published. Required fields are marked *