Electronic Bills of Lading
Electronic bills of lading is the way of the future. The United Nations adopted the Model law on Electronic Transferable Records (MLETR) in 2017 to provide a framework for countries to incorporate this aspect into their laws. It specifically calls out the Bill of Lading as an example of electronic transferable records that can be used in the same manner as traditional paper based documents and provide the same functionality.
Systems that use electronic Bills of Ladings
The conversion to an electronic bill of lading is believed to result in a greater efficiency for the freight industry. Faster processing of transactions, cost savings and improved security.
One of the biggest opportunities is to eliminate the problem of lost Bill of Ladings and the resulting work and risk associated.
CargoDocs
Below are some applications available for use by the Freight industry.
Bolero
Bolero is a platform by Bolero International Ltd that allows you to logon via a secure authentication and enrollment process to a platform. Once entered you can use this platform to create, send, amend electronic Bills of Lading and Waybills.You can view the lifecycle of your electronic document right through to its delivery to the receiver. Bolero can be integrated with your existing office freight management system.
edoxOnline
edoxOnline is a web based platform created by Global Share S.A. to collect information that can then be transformed into automatically generated documents. It allows for cooperation between multiple parties such as freight forwarders, customs brokers, maritime agents, fumigation companies who input data separately via their login which is then compiled into your documentation. This reduces data entry and improves accuracy.
CargoDocs
CargoDocs was created by Electronic Shipping Solutions and comprises of DocHub for creating and approving documents and DocEx for exchanging documents. As of March 2020, CargoDocs is used in 78 countries. In addition to electronic Bill of Ladings they also specialize in certificates of origin, commercial invoices and warehouse warrants.
e-title
e-title is a shipping and logistics focussed electronic document solution. Created by E-Title Authority Pty Ltd it focuses on title transfer in a peer-to-peer based platform. It is a cost effective solution designed with ease of use in mind.
CargoX
CargoX by CargoX has been recognised as the first public blockchain Bill of Lading provider. CargoX has been recognized on the FreightTech 100 list amongst the most innovative and disruptive companies across the freight industry for its groundbreaking work in this space.
It is offering electronic Bill of Lading with all the existing features of the paper based document that is based on blockchain technology and uses a private key system to allow access to documents.
Use of blockchain in Bill of Ladings
A business needs to verify that an electronic Bill of Lading is the original document and has not been tampered with.
Blockchain technology is seen as the ideal solution for this as it provides a shared platform where records can be kept along with details of each transaction that occurs. In theory blockchain technology renders these records tamperproof because the information is held in a distributed network rather than in one location and cannot be altered.
For more on the exciting potential of logistics and freight forwarder blockchain technology.
Guidelines for use of electronic Bill of Ladings
Fundamentally the process remains the same, it is just that the document is now in an electronic form.
Some considerations include:
- Is your team been trained to handle electronic Bills of Ladings
- Have related IT systems been reviewed to prevent security breaches
- Have digital back up systems been tested
- Do sufficient personnel (and back-up personnel) have access
- Is there sufficient workstations and tablets available (along with chargers)
- Is your new process tested and documented?
- Is there support readily available in the transition phase during all hours of operation
Check if country allows use of electronic bill of ladings
For the forseeable future it is critical to check whether the countries involved in your freight are equipped to handle paperless transactions in a practical sense but also in a legal sense. Is an electronic Bill of Lading recognised under law?
As of March 2020, only one country has signed the MLETR to show that they have legislation that follows the model law. It will take time for countries to adapt and update their legislation accordingly to these new developments.
Check if country allows use of electronic bill of ladings
Verify that insurance is covered when using of electronic bill of ladings
In terms of insurance we advise caution as not all paperless systems are recognised or considered equivalent so should a claim need to be made relating to cargo transported in this manner the extent of coverage would be determined on a case by case basis.
Verify that insurance is covered when using electronic bill of ladings
The potential rewards of cost savings and a more efficient process will be motivating businesses to explore moving to electronic Bill of Ladings. Thorough preparation and involvement of all stakeholders is recommended when undertaking such a significant change to the business. At this stage it is unlikely any businesses will be completely paperless, but the great news is that big strides have already been made- particularly in the use of blockchain technology.
Support available for Bills of Lading creation
Eliminate unnecessary delays and reduce business risk by partnering with an experienced and reputable freight forwarder. We pride ourselves on delivering quotes in a timely fashion that take into account your specific needs so that there are no surprises later on. Whether you are importing to the US or exporting we can help you have a hassle-free experience.
If you need help on bills of lading when shipping internationally to or from the USA, contact us online and send a message. You can even message us on Facebook for assistance. We have much expertise and are happy to help.
