In the last few months there’s been a slew of good news relating to the adoption of electronic bills of lading (eBL), the critical document representing ownership of goods in transit. The latest news is Japanese container carrier Ocean Network Express (ONE) is working with the blockchain Global Shipping Business Network (GSBN) to implement the latest eBL standards. Most eBL platforms use blockchain.
Two years ago the Digital Container Shipping Association’s (DCSA) secured a commitment from major container carriers to issue half of their bills of lading electronically within five years and 100% in ten years.
Last week the DCSA published its latest Bill of Lading 3.0 standard incorporating electronic signatures. ONE is working with GSBN to continue its adoption of the standard. GSBN’s other carrier partners are COSCO, OOCL and Hapag LLoyd.
Group of P&I Clubs relax eBL process
Earlier this month, the International Group of P&I Clubs also made a major announcement regarding eBL. The 12 P&I Clubs together provide marine insurance for 90% of ocean going freight. Given bills of lading represent title to the cargo, until now they would formally approve all new eBL providers. If an eBL solution provider wasn’t on their list, it meant their eBLs could not be used because there would be no insurance.
In its new process, the International Group instead outlined a set of eBL requirements. Provided the system complies with the short list, it is deemed as approved. One of the main requirements is that the bills of lading are subject to a governing law that recognizes them being electronic, such as the UK’s Electronic Trade Documents Act. Another is that the system has been audited or there’s some supervisory review of the eBL platform.
This doesn’t impact the eBL platforms that are already approved.
Meanwhile, there are signs of increasing eBL adopton. In 2022 only around 2% of bills of lading were electronic. That was despite about around 22% of surveyed users supporting both electronic and paper versions, implying eBLs were only used for a small proportion of shipments. A repeat survey by the FIT Alliance in 2024 found the 22% figure had risen to 41.7%. Plus, 74.7% (2022: 58%) of paper-only users intended to transition to eBLs.
It follows the FIT Alliance launching a promotion for eBLs in 2023. Its members include the International Chamber of Commerce (ICC), Swift, DCSA, bulk shipping association BIMCO and the International Federation of Freight Forwarders Associations (FIATA).
