100% electronic Bill of Lading by 2030 – Possible to achieve?

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Both initiatives make way to elimination of paper-based documentation to produce Bill of Lading and ease the process seamlessly. But is it possible to achieve the desired numbers within the said time frame? Let us explore.

Limitations

This non-digital process is costly, takes time to execute, and is highly susceptible to errors. The digitalisation of the BL has been slow and difficult to date, due to various stakeholders involved in the process, all of whom have different interests, needs, and systems—and must be approached individually. Many other documents are connected to the BL process via a multitude of interfaces, so individual digitalisation initiatives have been challenging to execute as a single stakeholder due to the limited impact they can make on their own.

Time-consumption

The documentation process alone can take six or more hours across all stakeholders. Across the globe, generating a physical BL is dubbed a tedious process as it requires constant follow-ups with multiple parties and takes nearly 7-14 days. Additionally, discrepancies may spill over a few more days if discrepancies are identified.

The cost factor

The original BL still requires many stakeholders to print, stamp, and sign various paper copies before physically transporting them from origin to destination as air express shipments. Furthermore, other essential trade documents, like letters of credit and customs declarations, require the paper-based BL as a prerequisite for their creation and issuance.So cumulatively, obtaining a BL adds up to the Carriers’ overall cost of at least US$4 billion annually worldwide. This accounts for unwanted miscellaneous costs for the industry, and eliminating it is of high priority for trade bodies.

Data security and accuracy woes

With manual documentation, accuracy is always considered a challenge, and due to the same, the overall process turns out to be time-consuming too. Additionally, a physical document is always manipulated by various parties involved in the process.

Furthermore, the bill of lading is a document of title. It, therefore, requires the highest possible security standards, over and above e-mail or electronic data interchange (EDI) standards, and this creates additional concerns for all parties involved.

Improvements in the import/export process

An e-BL will be game-changing for the overall ecosystem. Why? Because it will not only help in scaling large-scale automation and bring transparency but also offer end-to-end communication between stakeholders and eliminate security risks in the Logistics ecosystem.

How will the industry benefit?

Adopting an electronic Bill of Lading could lead to direct cost savings for all stakeholders, amounting to $6.5 billion annually. Carriers could realise up to $2.1 billion in benefits, such as more direct interaction with shippers, and streamlined and digitalised workloads, leading to cost savings. New digital capabilities could also lead to a new revenue stream for carriers through improved customer journeys. The broader trade ecosystem could unlock a further $6.9 billion in value. Ultimately, greater digitalisation could enable $40 billion in global trade by 2030.