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The first successful standards-based, interoperable electronic Bill of Lading (eBL) transaction was completed yesterday, addressing what many consider the sector’s most stubborn digital bottleneck.
The Digital Container Shipping Association (DCSA) announced that its framework, which allows eBLs to be exchanged seamlessly across different digital platforms, has become a commercial reality.
“What began as an industry ambition has transformed into tangible progress,” said Niels Nuyens, Chief Product Officer at DCSA. “The foundation for the digital exchange of shipping documentation and data is in place.”
McKinsey research estimates the development could help unleash $6.5 billion in direct cost savings and enable up to $40 billion in increased global trade; widespread eBL adoption has been stymied by platform fragmentation requiring all transaction participants to use identical solutions.
The successful transaction was facilitated through DCSA’s interoperability framework with three core components:
- A standardised Platform Interoperability application programming interface (API);
- A legal framework governing relationships between solution providers; and
- A Control Tracking Registry that securely logs which platform controls each eBL.
South Korea’s HMM, participating in the milestone transaction with Brazilian pulp producer Suzano, demonstrated how eBLs could move between different platforms in real time.
“We recognise the value of interoperability between eBL solution providers to achieve DCSA’s ‘100% eBL by 2030’ goal,” said John Kim, Senior Manager Digital at HMM. “It was an incredible experience to participate in this interoperability pilot as a carrier and see eBL being sent to our shipper, Suzano, on two different platforms in real time.”
Shipping has been lagging behind other industries, such as banking and aviation, regarding document digitalisation and digital standards.
Documentation for a single shipment can require up to 50 sheets of paper exchanged among 30 different stakeholders, with bills of lading (BLs) representing 10-30% of total trade documentation costs. The COVID-19 pandemic highlighted these inefficiencies when thousands of containers with missing or incorrect documentation lingered in ports as flights transporting physical trade documents were cancelled.
The DCSA initiative brings together nine container carriers representing approximately 70% of global containerised trade. Multiple eBL solution providers are now implementing the interoperability framework, with additional transactions planned between HMM, CargoX, Enigio and a Fortune 500 shipper, while TradeGo and WaveBL are preparing transactions with Japanese carrier ONE.
Targe Bock, COO Suzano Europe, called the development “a reflection of our commitment to innovation and operational excellence. This achievement shows how collaboration can unlock real value and drive efficiencies across the supply chain.”
With regulatory frameworks supporting digital documentation already established in Singapore and Abu Dhabi, and the UK announcing plans to include digital trade documentation in its legislative agenda, momentum appears to be building toward DCSA’s goal of 100% eBL adoption by 2030.
