POSCO International accelerates trade digitisation with launch of electronic bill of lading consortium

POSCO International (047050.KS) is advancing the digitisation of its entire trade process by transitioning from paper bills of lading to electronic bills of lading (e-B/L). 

On 25 August, the company signed a memorandum of understanding at the POSCO Centre in Seoul with POSCO Flow, global shipping line ZIM, Hana Bank, Korea Trade Network (KTNET), and Taeoung Logistics (124560.KS) to establish an e-B/L consortium.

The consortium unites key stakeholders in trade transactions, including a general trading company, a shipping line, a logistics firm, an electronic trade platform operator, and a financial institution. 

Together, they will develop the infrastructure necessary for issuing and trading e-B/Ls, promote their adoption among shippers and financial institutions, and collaborate on regulatory improvements and legislative support.

Replacing paper bills of lading with digital documents

A bill of lading is a fundamental trade document that establishes cargo ownership and facilitates payment settlement. 

Traditionally, these documents were issued on paper. They take five to ten days to circulate among exporters, importers, shipping lines, and banks, which often leads to high international courier costs and risks of delays, loss, and forgery.

The e-B/L replaces paper originals with digital documents, enabling issuance and trading to occur entirely online, thereby streamlining the process.

In July, POSCO International conducted a pilot test using ZIM’s e-B/L platform, WAVE BL, for exporting auto parts from Busan to Charleston, USA. The pilot demonstrated reduced document transfer times, lower costs, and diminished risks of loss and forgery. Building on these results, POSCO International is now applying e-B/Ls across its trade operations.

Jeong Kyung-jin, division head at POSCO International, said, “This consortium will set a new standard for a Korean-style e-B/L ecosystem. Beyond simply digitising documents, we will accelerate the digital transformation of the entire trade process and contribute to strengthening national logistics competitiveness.”

Roles of consortium members

POSCO International will be leading the consortium and driving the spread of e-B/Ls to digitise trade finance. POSCO Flow will mediate between shipping lines and shippers to expand e-B/L issuance. ZIM will support e-B/L issuance, platform integration, and distribution, and KTNET will operate the electronic trade platform for e-B/L distribution and integrate it with trade finance systems.

Hana Bank would be providing advisory services on trade finance processes and collaborating on related financial services, and lastly, Taeoung Logistics would support logistics operations and the e-B/L issuance process.

Anticipated benefits and digital transformation goals

POSCO International anticipates that adopting e-B/L will cut trade document turnaround times to a few hours. 

This shift would also lower international express courier and document processing costs by up to 80% and reduce carbon emissions.

The initiative forms a core part of POSCO International’s trade digital transformation (DX) strategy. 

The company will implement e-B/Ls for import and export operations and create an “e-Nego” system to digitise trade finance processes like export bill of exchange purchases. This strategy aims to improve digital connectivity in document preparation, logistics, finance, and payment collection.