Global Shipping Business Network (GSBN) has published a new report emphasizing significant carbon emission reductions achievable in the shipping sector through digitalization of operations.
GSBN together with SIA Partners conduct the study titled “Impact of Digitalization in Driving Decarbonization in Shipping.”
As explained, the transportation sector plays a significant role in global greenhouse gas emissions (GHG). 80% of international trade relies on maritime shipping, accounting for nearly 3% of total worldwide GHG emissions.
In particular, the research of GSBN, draws from a comprehensive life cycle assessment comparing to the environmental impact from creating and transferring traditional paper-based documents, with the impact when using digital exchanges.
The paper begins by examining digitalization trends and their benefits in the maritime sector, particularly related to the sector’s decarbonization objectives.
Benefits of digitalization of shipping documents
The advantages of shipping document digitalization extend beyond merely reducing GHG emissions. Taking eB/Ls and eD/Os as examples, additional benefits may include:
- Efficiency: Paper based B/Ls rely on several physical handovers with couriers, which can take several weeks.
- Security: With paper-based B/Ls, there is a high risk of fraud or loss. Blockchain-based eB/Ls are securely housed in digital repositories, limiting accessibility to only relevant and authorised stakeholders, and enabling the transmission of sensitive information through secure channels.
- Ease of use: While paper-based B/Ls need to be physically processed and managed by one stakeholder at a time, eB/Ls can be easily accessed and used on a digital platform with decentralized storage, making it retrievable by authorized parties at multiple location and at the same time.
- Cost: The adoption of eB/Ls can lead to significantly lower overall costs, as they are not subject to high costs from paper consumption, courier fees or storage like paper-based B/Ls are.
The report ends by offering specific recommendations for the shipping industry, emphasizing the significance of widespread adoption of digital technologies, enhanced data reliability and compatibility, and the elimination of regulatory barriers to accelerate the shipping sector’s shift towards sustainability.
To remind, in an exclusive interview to SAFETY4SEA, Bertrand Chen, CEO of GSBN, discussed the benefits of an electronic Bill of Lading (eBL) and reveals the consortium’s interest in tokenizing eBLs for global trade to create new financial assets.
