Industry heavyweights commit to Electronic Bill of Lading digitization
The FIT Alliance has initiated the “Declaration of the electronic Bill of Lading” (eBL) to accelerate the digital transformation of global trade. This comes after the Digital Container Shipping Association (DCSA), a FIT Alliance member, secured commitments from nine of the world’s ten largest container shipping carriers to adopt eBLs. The plan is to achieve 50% eBL adoption in five years and 100% in ten years.
The FIT Alliance comprises of major organizations like the International Chamber of Commerce (ICC), Swift, DCSA, BIMCO, and the International Federation of Freight Forwarders Associations (FIATA). The coalition aims to replace paper-based processes, starting with the bill of lading, which is fundamental to trade as it signifies cargo ownership during transit. As of 2022, only 2.1% of the 45 million bills of lading were digital, a slight increase from 1.2% in 2021.
The potential impact of eBL adoption is enormous. McKinsey estimates that eBL could yield $6.5 billion in direct cost savings and boost global trade by $30-$40 billion. Two significant challenges have hampered rapid adoption. The first is the lack of legal recognition for eBLs, though this is gradually changing. The second is the absence of interoperability among different eBL solutions. Both DCSA and Swift are working on making these solutions compatible.
To counter procrastination in adopting eBL, BIMCO, another FIT Alliance member, has initiated a ’25 by 25′ pledge, aiming for 25% eBL adoption by 2025. This pledge has garnered commitments from major mining firms like BHP, RioTinto, and AngloAmerican, as well as 27 industry bulk carriers. COSCO Shipping is the only top-ten container shipping carrier missing from the DCSA commitment.
