DCSA explains the benefits of real-time tracking

Transitioning to digital systems reduces the need for tim e-consuming manual data entry, as automated processes can be set up according to predefined rules from customs officials. This not only accelerates customs clearance but also mitigates the risk of human error, preventing delays associated with correcting mistakes. In cases where errors do occur, electronic Bills of Lading (eBLs) can be easily cancelled and re-issued, ensuring a more efficient and error-free process, 

Advantages of digital documentation

According to DCSA, digitalisation helps speed up information exchange, supporting greater accuracy, efficiency, and transparency, while improving operational efficiency. Indeed, a United Nations Conference on Trade and Development found that online trade information portals in Kenya have supported the simplification of 42 trade procedures, saving 69 hours of work and removing 64 documents from the process.

Digital documentation provides further benefits too, including cost savings and environmental sustainability. Savings can be significant, as traditional processes not only require the printing and shipping of paper-based documents, but also the work of couriers to transport them. The costs to cover these tasks are substantial and can be avoided with digital documentation. Indeed, a 2022 study found that an electronic B/L (eBL) could directly save $6.5 billion and enable $40 billion in global trade. Another study found that paper documents make up fifteen per cent of the cost of transport, DCSA informs.

What’s more, a digital transition is beneficial to the environment, DCSA highlights. According to the Economic and Social Commission for Asia and the Pacific, transitioning could reduce greenhouse gas emissions by 32 to 86 kg per end-to-end transaction. Scaling to trading volumes in Asia and the Pacific indicates potential savings of an average 13.8 million tons. This is equivalent to the planting of 439 million trees.

Types of digital documentation in container shipping

Various types of digital documentation are used in container systems, including the eBL, shipping instructions, freight manifest, proof of delivery, and the certificate of origin. The eBL provides the same information as the paper-based B/L, but it operates under its own legal framework and uses technology to replicate the functions of a traditional bill. Furthermore, DCSA also notes the following: 

Key facts about Electronic Bills of Lading (eBLs):

• eBLs digitalize data entry, allowing for electronic stamps and digital signatures, speeding up the shipping process.

• Once generated, eBLs allow instant online access to cargo data, information, and ownership for all authorized parties via smart devices.

• eBLs reduce processing time to less than a tenth compared to paper-based methods. Transactions using eBLs typically conclude in 2.6 days on average, versus 30 days for paper-based methods.

• eBLs provide a detailed audit trail documenting every action, access, and modification, ensuring transparency and accountability.

• eBLs are encrypted and stored securely on digital servers, reducing the risk of tampering, forgery, and data breaches.

• eBLs facilitate easier compliance with legal and regulatory standards through automatic verification and adaptation to regulatory changes.

Overall, the journey from paper to paperless in container shipping not only addresses the challenges faced by the industry, but also aligns seamlessly with DCSA’s mission.