The Global Shipping Business Network (GSBN) has announced that COSCO Energy and COSCO Bulk have joined the consortium as members and successfully issued the first electronic bills of lading (eBL).
As explained by GSBN, traditionally both bulk and energy shipments have relied on letters of indemnity (LOIs) as proof of shipment ownership. However, according to GSBN, this method poses risks due to the risk of mis-delivery. However, according to GSBN, their digital platform integration with IQAX’s eBL application built on its blockchain infrastructure has allowed COSCO Bulk and COSCO Energy to improve the security and consistency of title transfer with immutable records.
COSCO Bulk issued its first eBL for Yancoal, an Australian-based coal producer, connecting the entire business chain, including banks, traders, miners, and end-users.
What is the Global Shipping Business Network?
GSBN aims to enable and accelerate the digital transformation of the shipping industry, through the setup of a Data Exchange Platform, which enables the shipping industry to improve its resilience by:
- Facilitating better digital connection and collaboration between stakeholders
- Improving the visibility to enhance sustainability and reliability of operations
- Creating a data utility platform to unlock the value of digital transformation for all
For large value and high risk of oil tanker transportation, an eBL based on blockchain technology substantially improves the efficiency of document circulation, reduces logistics cost and commercial risk. It also guarantees the authenticity, security and uniqueness of the bill of lading, while promoting decarbonisation in line with ESG practices.
… said COSCO Energy
Furthermore, COSCO Energy also issued the first eBL for 30,000 tons of domestic trade marine oil for the shipment of China National Offshore Oil Corporation. COSCO Bulk stated that by harnessing the power of GSBN’s blockchain infrastructure, they can offer a more efficient, trust and secured solution for their customers globally.
To remind, a few days ago, collaboration of industrial and technological professionals, backed by government, business, and other important organisations, completed the world’s first wholly digitalized cross-border flow of commodities.
Additionally, the Electronic Trade papers Act entered into effect in the United Kingdom, granting electronic trade papers, including electronic bills of lading, legal validity under English law.
