FIT Alliance calls for collaboration between shippers, freight forwarders and banks to promote adoption of electronic Bill of Lading

Future International Trade Alliance promotes adoption of the electronic Bill of Lading to facilitate the digital transformation of the global supply chain, highlighting stakeholder collaboration as key to widespread adoption. Importance of the eBL The eBL is central to the digital transformation of the global supply chain. Digital transmission considerably improves the speed and efficiency of data transfer, imporoving operational efficiency and reducing the need for manual handling and intervention. Given that paper-based Bills of Lading (B/Ls) can be easily forged or doctored, the eBL also considerably lowers the potential for human error and, in turn, contributes to a meaningful reduction in fraud. Importantly, eliminating the use of paper can also significantly lower emissions and reduce costs across the industry. Indeed, switching to an eBL could save an estimated 28,000 trees per year and reduce greenhouse gas (GHG) emissions by 32-86kg per end-to-end transaction. Meanwhile, according to a 2022 report by McKinsey, a universally adopted eBL could save the container shipping industry up to US$6.5 bn in documentation costs, as well as create over US$7 bn through reduced inventory and financing costs. It could also enable up to US$40 bn in new global trade volumes by reducing trade friction – particularly in emerging markets.

Momentum is strong Recent experience has demonstrated that, for innovation and digitalisation to succeed, the industry itself must fully commit and lead by example. Working closely with its members, trade partners, and solution providers, the FIT Alliance is leading collaborative efforts to make digitalisation a reality across the supply chain. Driven by the wider supply chain and supported by solution providers – in addition to crucial stakeholders such as banks, freight forwarders, and shippers – this collective commitment to change represents a significant step forward in the industry’s journey. As a result, the shipping industry is experiencing an unparalleled push for digital transformation. Each of the FIT Alliance’s partners is leading initiatives to engage crucial stakeholders in driving eBL adoption, as well as stimulating industries and governments to pave the way for more widespread uptake. The Digital Container Shipping Association (DCSA), for instance, has noted a more dynamic, volatile container shipping industry over recent years and highlights the importance of a universal eBL in achieving a more efficient, secure trading environment. DCSA works closely with eBL solution providers on platform interoperability to enable seamless data transfer across platforms and promote wide-scale adoption. It also works alongside shippers and freight forwarders to identify challenges, set adoption objectives and build business cases through collective exploration, testing, and shared insights. Notably, as part of its work to explore the hurdles impeding uptake, in May 2024, DCSA announced the release of its milestone report, “Overcoming legal and regulatory barriers to eBL adoption”. This comprehensive study explores the legal and regulatory status of digital documentation across 15 jurisdictions – which together represent over 60% of global trade – and outlines strategies to overcome challenges.

Meanwhile, in summer 2023, the Baltic and International Maritime Council (BIMCO) launched its 25 by 25 campaign, whereby shippers committed to moving at least 25% of their annual seaborne trade volume for at least one commodity via eBLs by 2025. By July 2024, BIMCO had already reported that four of the initial participating shippers – mining giants BHP, Rio Tinto, Vale and Anglo American – had achieved an average eBL adoption rate of 25.1% for their iron ore shipments. This has only increased momentum, and BIMCO continues to work with stakeholders to support more widespread uptake. The International Chamber of Commerce (ICC) has been actively leveraging its extensive global network to engage and educate the business community on the critical importance of eBLs and the benefits for corporates. For instance, the Digital Standards Initiative (DSI) recently joined a dedicated workshop on “The Effects of Electronic Documentation and New Technologies on Trade Facilitation”. Organised by ICC Colombia and Cámara de Comercio de Bogotá, the workshop aims to facilitate Colombian entrepreneurs’ access to international markets.