In October 2019, IMDA (Infocomm Media and Development Authority) and the MPA Singapore co-hosted a workshop for the delegates from Blocklab, Port of Rotterdam’s (PoR) blockchain centre to work on the requirements of title transfer capability in relation to eBLs for cross-border trade transactions. Following this workshop, a successful Proof of Concept (PoC) was executed on 31 Mar 2020 to trial the transfer of title for eBLs based on the #TradeTrust framework.
The ambition was is to digitalise this very first step in the international trade and logistics transaction and to make it interoperable with eBLs.
The alignment achieved through the workshop is important for developing title transfer capability through #TradeTrust software components, which are open-source.
Following this workshop, a successful Proof of Concept (PoC) was executed on 31 Mar 2020 to trial the transfer of title for eBLs based on the #TradeTrust framework.
Simulated transactions carried out in the PoC were for the transfer of title from a shipper to a consignee for shipments from Rotterdam to Singapore and vice versa.
Apart from digitalisation of logistics, the development saves administration and paperwork for both shipper and consignee.
The next step will be the practical use of the framework in shadow shipments on the trade lane Singapore to Rotterdam and vice versa.
As part of this next phase, the interoperability of TradeTrust with other blockchain platforms will be presented by means of the DELIVER platform, that is jointly being developed by ABN-AMRO, Samsung SDS and Port of Rotterdam.
The end state of TradeTrust envisions a truly paperless, legally binding negotiable bill-of-lading, potentially ending the wasteful “machine-to paper-to machine” processes that have prevented true automation of international trade.
The transfer capability shall be compliant to the UNCITRAL Model Law on Electronic Transferable Records (MLETR), which stipulates the conditions that electronic trade documents need to fulfil in order to be the functional equivalent of the paper based ones.
#TradeTrust’s marked difference from the conventional platforms is the use of an open framework based on these internationally accepted standards. A crucial part of the project is the involvement of relevant authorities on both sides to facilitate the legal adoption. In the Netherlands, the project is actively supported by the Ministry of Economic Affairs.