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Electronic Bills of Lading (eBLs): A Modern Solution for Global Trade

The Bill of Lading is arguably the most important shipping document. After all, it is proof of shipment, a receipt for goods, and a document of title. But it also is traditionally a physical document made from paper which can lead to several inefficiencies, risks, and delays. Enter the electronic Bill of Lading (eBL) — a digital alternative that modernizes and simplifies global trade documentation.

What is an electronic Bill of Lading? 

An electronic Bill of Lading is a digital version of the traditional paper Bill of Lading, offering a secure, paperless way to manage cargo information, track origin and destination, and confirm transaction integrity with ease and speed. Hence, it can provide a faster and more secure way of handling documentation. Just think of a piece of paper getting lost somewhere – this cannot happen with an eBL. 

We at Hapag-Lloyd teamed up with two certified partners to provide you with extensive eBL services tailored to your individual needs: iQAX and WAVE BL.  We have also commited ourselves to switch to 100% eBL usage by 2030.

Differences between eBLs and traditional BLs 

Let’s start with what’s the same for both options: the functions of the document. While the creation and handover of the Bill of Lading will be digitalized for the electronic Bill of Lading and secured with blockchain technology, its main purpose stays the same. 

The term blockchain is a combination of the words "block" and "chain". It acts as a digital fingerprint and each block is totally unique and encrypted. Hence, each block in the chain can only communicate with the next one and securely hand the data over to it. Information that is secured by blockchain cannot be changed. Even though blockchain is a relatively new technology, it is deemed a very secure one. You might even use the technology in your daily life as it’s implemented in services such as digital banking, insurance and even trade solutions already.

You can learn more about blockchain technology in the shipping industry in our article. 

But what exactly are the differences between an eBL and the traditional Bill of Lading? 

1. Speed and accessibility 

Traditional BLs require printing, manual processing, and international courier services, often causing shipment delays when changes within the document have to be made or – in the worst case – the document gets lost along the way. eBLs are instantly generated, transferred, and accessible to all parties in real-time, eliminating delays and enabling quicker decision-making. 

2. Costs 

As they are actually made from paper, BLs also account for printing costs, courier services, and manual error corrections. Lost or damaged documents add to these expenses as the whole process has to be done again. Electronic BLs eliminate printing and courier costs, while automated processes reduce administrative labor and errors. 

3. Security 

Bills of Lading can be prone to forgery, loss, and fraud, with limited transparency during transfer as the actual document gets handed from one party to another. With an eBL the security risk can be drastically reduced as secure digital platforms with advanced encryption and blockchain technology prevent forgery and unauthorized access. 

4. Environmental Impact 

Last but not least, think of all the printed BLs that make their way across the globe every second.  This contributes to paper waste and carbon emissions from shipping and printing the documents. With the usage of an eBL this can be reduced. 

According to several estimations, each year around 45 million Bills of Ladings are created – by ocean carriers only. Since a BL typically consists of 3 issues (one each for the shipper, the consignee and the banker) that’s a lot of paper! As of now, only around 2% of global BLs are electronic.

All these advantages are also an indication of what an eBL can do for you and your business. With the electronic solution you are way more flexible, have lower handling and material-related costs, a higher security when it comes to forgery, document loss, and an enhanced ease of use in the creation and handling of the Bill of Lading. 

Rolf Habben Jansen, CEO of Hapag-Lloyd

"We have been offering our customers electronic bills of lading since last year to simplify and streamline document handling for all stakeholders and to reduce our carbon footprint. The feedback from our customers has been very positive. The target of having 100% eBL by 2030 is an important part of digitalising global supply chains and will require a collective effort from the industry to make it a reality."

When to use an electronic Bill of Lading 

With all the benefits mentioned above, you might be eager to start using an electronic Bill of Lading immediately. But first, let’s take a look at some use cases in which an eBL might become especially handy. 

1. Straight or non-negotiable bills 

For a straight bill, typically the shipper sends the original paper BLs by courier to the specified consignee, who must surrender the BL at the destination to the carrier, often through another courier process (and repeat the process in case of errors or losses). With an eBL the consignee receives, transfers, and surrenders the eBL electronically, eliminating the need for couriers and waiting times. 

2. Telex release/Print at destination 

In this case, the shipper surrenders the original BL to the carrier at the origin for express release or requests the carrier to release the original BL to the consignee at the destination. Using an eBL solution eliminates the physical surrender and enables the shipper or carrier to securely transfer the document digitally. 

3. Amendments of the Bill of Lading 

Changes or errors in the original issuance require returning the BL to the carrier for amendments, causing delays and potential courier costs as the entire process has to be done again. That can even be a little error as a typo in the consignee’s name or address. With eBL however, amendments can be made instantly and securely through the digital platform, saving time and avoiding additional costs. 

If a Bill of Lading is issued “to order” there is no named consignee stated. Instead, the container and the BL can be handed from one person to another as whomever has the BL can retrieve the cargo at destination.

4. To-order or negotiable bills 

In this case the transfer of original BLs can be very cumbersome because the actual consignee is unknown at the time of booking and may change multiple times. This requires multiple manual exchanges and courier interventions. eBLs simplify and streamline transfers with instantaneous, secure digital exchanges, accommodating multiple changes without delays – even if the BL is issued to order. 

Embrace the new digital standard with eBLs

Transitioning to electronic bills of lading is no longer just an option; as of now it can be a strategic advantage. Electronic BLs offer unmatched efficiency, security, and a sustainability factor while retaining the same legal validity as their paper counterparts. 

By adopting eBLs, you can start modernizing your operations all while reducing costs and enhancing customer satisfaction. With near to real-time document access and secure digital transfers, this solution pave the way for a smarter, more sustainable future in global trade.  

Get started today and check our eBL Partner solutions in the Online Business Suite.

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