MSC launches electronic bill of lading

Moves to rid container shipping of some of its more archaic, paper-based processes have taken a further step forward with Mediterranean Shipping Co introducing a blockchain-based electronic bill of lading.

The eBL enables shippers and others in the key supply chain to receive and transmit the bill of lading document electronically, without any disruption to business operations.

“Traditionally, the shipping industry has relied quite heavily on physical paper documents,” said MSC chief digital and information officer André Simha. “Among these, the BL is the most important transport document in international trade.

“While there have been attempts to create an eBL solution in the past, we are now in a position to introduce a solution that can pave the way to mass eBL adoption, which will mean significant savings for the shipping industry.”

According to figures from the Digital Container Shipping Association, of which Mr Simha is chairman, even a 50% eBL adoption by 2030 could save the industry more than $4bn a year.

“Eliminating paper from the shipping transaction will make every aspect of commercial container shipping better, faster, more effective, more secure and environmentally-friendly,” Mr Simha said.

The benefits of eBLs include removing document transportation from the supply chain, enabling faster documentation transfers  and shorter payment cycles. They are also more secure and less susceptible to forgery, fraud and loss.

After running successful pilot projects in select countries since 2019, MSC is now introducing its digital solutions to its customers worldwide, which it said would pave the way for widespread eBL adoption.

The WAVE BL system uses distributed ledger technology to ensure that all parties involved in a cargo shipment booking can issue, transfer, endorse and manage documents through a secure, decentralised network.

“MSC has chosen WAVE BL because it is the only solution that mirrors the traditional paper-based process that the shipping and cargo transportation industry is used to,” Mr Simha said “It provides a digital alternative to all the possibilities available with traditional print documents, just much faster and more secure.”

The coronavirus pandemic led to a surge in interest in digitalised bills of lading as shippers were unable to physically visit offices to release cargoes.

“The pandemic has restricted human and transport mobility in many places,” Mr Simha said. “Countless containers have been stuck at various ports, terminals, depots and warehouses around the world because the receiver doesn’t have the original paper BL required to release these goods at their destination.”

By digitalising the BL, users were able to overcome border restrictions, postal interruptions and other pandemic-related disruptions, and handle the process remotely.