Cross-platform electronic bills of lading achieve key industry milestone - Trade Treasury Payments

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Cross-platform electronic bills of lading achieve key industry milestone

The adoption of electronic Bills of Lading (eBLs) in container shipping has taken a step forward with the launch of an interoperable eBL solution developed through a collaboration between the Global Shipping Business Network (GSBN), ICE Digital Trade, and IQAX. 

The initiative aims to address barriers to digital trade and support the industry’s goal of 100% eBL adoption by 2030.

The solution was tested in a live transaction involving the Orient Overseas Container Line (OOCL), which issued an IQAX eBL to a major oil and gas company via ICE CargoDocs. The eBL was later transferred to Deqing Sunny Plastics before being surrendered back to OOCL. 

This development addresses key challenges that have historically hindered eBL adoption, such as ensuring that only one original eBL exists at any time and that lawful control is maintained throughout the transfer process and that the electronic document would be recognised in the courts. 

This transaction was able to overcome both of these. As a control tracking registry, GSBN provided an immutable audit trail using blockchain technology while the UK’s Electronic Trade Documents Act 2023, granted the eBL the same legal status as their paper counterparts.

Additionally, a liability framework between ICE Digital Trade and IQAX helped clarify responsibilities in the event of losses. The approach has been approved by the International Group of P&I Clubs (IG P&I), to comply with insurance requirements for carriers like OOCL.

Karen Lam, Managing Director (Asia, South East Asia and Bangladesh Group) of OOCL, said: “Participating in the interoperability of the eBL solution aligns with our commitment to innovation and excellence. This initiative enables us to improve our services to customers while contributing to a more efficient and secure global trade ecosystem.”

Bertrand Chen, CEO of GSBN, said: “Achieving eBL interoperability is the missing link to achieving widespread eBL adoption. This go-live demonstrates that GSBN’s blockchain-enabled infrastructure can address the legal and liability challenges head-on, ultimately enhancing the customer’s experience by enabling them to realise the vast benefits of eBL while remaining in their preferred solutions. We are proud to collaborate with ICE, IQAX eBL, OOCL on this milestone. We have also demonstrated the value of GSBN ecosystem by combining this interoperable eBL with our Cargo Release product in Shanghai. By collaborating with all our partners, we can fulfil our mission in enabling a fully paperless user experience.” 

Marina Comninos, Co-Head of ICE Digital Trade, said: “Interoperability is essential for scalable eBL adoption in liner, and collaboration is key to achieving this goal. The launch of our Interoperable eBL Solution marks just the beginning of the journey: we are excited to continue working with our trusted partners at IQAX eBL and GSBN, as well as other providers across different geographic and industry segments, to bring value add solutions to the industry. The aim will always be to deliver interoperable solutions which are legally sound, technically resilient and have a robust and transparent governance structure. As we mark 20 years in the eBL market, we understand that fostering trust within the industry is critical to success and we remain committed to delivering value to our customers.”

Lionel Louie, COO of IQAX, said: “IQAX believes that interoperability is vital for advancing global trade digitalization. Our commitment is showcased through our innovative eBL platform. This first interoperable eBL transaction with ICE Digital Trade supported by GSBN’s blockchain infrastructure is a significant step toward creating an interconnected digital trade network. By championing eBL interoperability, we reduce risks and costs while fostering a more inclusive and efficient global trade ecosystem where multiple platforms can collaborate seamlessly. Our vision is to establish a trusted network that empowers all stakeholders in the digital trade transformation.”

This transaction demonstrates that secure and legally robust cross-platform eBL exchanges are possible, a promising sign as container carriers work towards full eBL adoption by 2030.