The Digital Container Shipping Association (DCSA) released new research as part of its ongoing effort to establish a standardized e-bill of lading (eBL), outlining the benefits and challenges to achieve the long-held goal for digitalization.
Specifically, DCSA conducted a financial modeling exercise to quantify the potential cost savings that could be achieved, estimating that the industry could potentially save more than $4 billion per year if just 50% eBL adoption is achieved.
The Association supports that by establishing a standardized eBL that it would be possible to achieve this 50% adoption rate by 2030.
It is highlighted that
Eliminating paper from the shipping transaction they point out will make every aspect of commercial container shipping better, faster, cheaper, more secure, and environmentally friendly.
André Simha, Global Chief Digital & Innovation Officer for MSC and DCSA Chairman stated that the pandemic brings the core strengths of a standardized eBL, while he added that cargo in ports cannot be gated out because of paper that is stuck elsewhere due to airfreight delays caused by the pandemic.
The report outlined three major factors that drive digitalization, along with the challenges and the obstacles that slow the adoption of technologcaa solutions, including the lack of robust technology, concerns over legal enforceability, and the need for standardization.
According to the report, the obstacles can be overcome pointing out for example that new technologies such as distributed ledger technology (DLT), peer-to-peer, and Blockchain offer potential solutions for eliminating the risk of a single catastrophic failure or attack that would compromise the integrity and uniqueness of an eBL.
Further the DCSA believes that many jurisdictions require paper because of the lack of industry-standard language and definitions have made it impossible for them to “rubber stamp” an electronic replacement.
Following the increased use of eBL by the industry, given the social distancing, DCSA will develop open-source standards for necessary legal terms and conditions, as well as definitions and terminology to facilitate communication among customers, container carriers, regulators, financial institutions, and other industry stakeholders.
Thomas Bagge, CEO of DCSA commented that
Digitizing documentation, starting with the bill of lading, is key to the simplification and digitization of global trade.
