Expert Talk: How to Transition From Paper BLs to Electronic BLs
At Hapag-Lloyd we’ve decided to make a switch to 100% paperless BLs by 2030. This decision also comes with some indications and challenges. In this interview our expert for electronic Bill of Ladings, Mithun Mohanty, gives some insights about eBLs, how to switch to paperless BLs and how digital solutions can help with the adaptation.
Hi Mithun, thanks for taking the time and shedding some light on all things eBL. To start with something easy: How would you describe eBLs and their benefits?
Mithun: An eBL (Electronic Bill of Lading) is a digital version of a traditional paper Bill of Lading (BL), which is a key document in shipping that acts as a proof of shipment to confirm that the goods were shipped. It also shows who owns the goods – which is known as “Title of goods” and acts as an agreement between shipper and carrier – so basically as the contract of carriage. Its benefits – compared to the traditional paper version - are very clear. Firstly, it offers much faster processing, and the parties involved don’t have to wait for the physical documents anymore. Then it also saves money because it’s completely digital, thus there is no cost for printing and coruler services– which also makes it environmentally friendly - and it’s more secure in terms of fraud and loss. And last but not least: An eBL is very easy to monitor and share between stakeholders in real-time.
Is that also why it’s an industry-wide goal to reach 100% eBLs by 2030 or are there more reasons to it?
Mithun: These tie into it, yes. But the main driver is the need to modernize global trade, making it more efficient, secure, and sustainable. And the shipping industry has recognized that paper-based processes are costly, slow, and prone to fraud. When the entire industry switches to eBLs we can eliminate delays caused by couriering physical documents, reducing shipment processing time from days to minutes and prevent forgery, loss, and theft, ensuring trust and transparency in transactions at the same time.
The World Economic Forum even estimates that digital trade documentation could save billions annually in administrative costs. Meanwhile, industry bodies like DCSA, and governments all over are already working on standardization and legal acceptance of eBLs worldwide.
Why wasn’t the change made earlier already?
Mithun: Despite the clear benefits, the full adoption of eBLs has been slow due to several challenges. First up, a lot of shipping parties and stakeholders use different legacy systems, making seamless digital adoption complex and challenging to have a unified data stream. It also takes time to align everyone to common digital standards. Then, obviously shipping is a global process, and not all countries legally recognize eBLs as a valid replacement for paper bills of lading. In some cases, companies still prefer traditional methods due to familiarity and perceived legal safety as they crave proven and secure solutions before they shift away from the known paper BLs. However, as I mentioned the momentum is growing and major industry players, governments, and technology providers are actively driving the change.
How do you think we can overcome these challenges?
Mithun: I really think that the entire industry must collaboratively and collectively work towards a couple key milestones to achieve the 100% eBL adoption by 2030. The most important one is universal legal acceptance to align global trade laws and regulations. And then of course ensuring compatibility across different systems and platforms for seamless data integration. And last but not least we also need the buy-in by financial institutions to make sure banks and insurers fully accept eBLs. This will also lead to increased trust while strengthening security and fraud prevention.
And where are we today when it comes to the adoption of eBLs?
Mithun: Over the last few years, we have laid a strong foundation for accelerating the adoption of electronic Bills of Lading (eBL). Our achievements showcase our commitment to trust, innovation, and seamless implementation. For example, we have successfully integrated the solutions with leading providers – WAVE and IQAX (GSBN) – and developed a scalable and secure digital infrastructure to support high transaction volumes. We have also conducted extensive in-house training for all customer-facing teams to provide them with the needed knowledge of the digital solutions to support our customers with the switch.
Speaking of customers: What do we, as Hapag-Lloyd, do to support our customers who want to make the change?
Mithun: To help our customers transition from paper-based Bills of Lading (BL) to eBL we are conducting webinars, workshops, and training sessions to help customers understand eBL benefits and processes on a regular basis. On the website everyone can also find helpful step-by-step guides, FAQs, and further support for a smooth onboarding process. We also offer trial programs so that our customers can experience eBLs without having to commit right away.
And lastly, any last convincing words on why the switch to eBLs makes sense?
Mithun: Let’s put it like this: Switching to eBLs is like upgrading from a fax machine to instant messaging—faster, safer, and way less frustrating. Trench the paper chase and go digital today!
Thank you so much for the very detailed insights into the world of eBLs and what we, as a player in the shipping industry, can and have to do to drive this topic forward.
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