THE BALTIC and International Maritime Council has launched a commitment by bulk shippers to increase the use of electronic bills of lading.
The “25 by 25 pledge” commits some of the biggest bulk shippers – including Australian miners BHP and Rio Tinto – to target moving 25% of their annual seaborne trade volume for at least one commodity using electronic bills of lading by 2025.
The pledge is part of an ongoing effort to accelerate trade digitalisation and streamline the supply chain process in the bulk sector.
According to BIMCO, the use of electronic bills of lading (eBLs) increases efficiency, reduces costs and improves the overall transparency and security of trade.
In contrast, paper bills of lading are inefficient, slow down trade and are vulnerable to fraud and human error. The use of paper bills therefore poses unnecessary legal and commercial risks such as relying on letters of indemnity or getting lost in transit.
BIMCO director of standards, innovation and research Grant Hunter said the wider adoption of electronic bills of lading is an important step in the shipping industry’s digital transformation.
“We are delighted that some major players in the dry bulk sector have already backed this community initiative to reach 25% usage across the entire bulk sector,” Mr Hunter said.
“These mining companies have made good headway with adopting eBLs over the past years, mainly with iron ore, but much more can be done.”
COSCO Shipping Bulk chairman (and BIMCO board member) Jinsong Gu said: “We believe that BIMCO’s campaign to achieve 25% eBLs in the bulk sector by 2025 is an important step in accelerating shipping’s digital transformation. Electronic bills of lading increase efficiency, reduce costs and will reduce reliance on letters of indemnity – which is a benefit to all stakeholders.”
Oldendorff Carriers head of operations – claims department Julius Posselt said: “As a shipowner and operator, we are fully supportive of the 25 by 25 pledge and accelerating the shift towards electronic bills of lading. We will be encouraging our counterparts to adopt eBLs and join the pledge as it will ultimately benefit everyone in the supply chain.”
BHP vice-president, order-to-cash global business services Hui Ling Chan said: “Identifying and driving innovative solutions is key to the way BHP operates, and we are committed to supporting the digital transformation in the shipping industry together with our supply chain partners. We are pleased to be a signatory to the 25 by 25 pledge and hope others will join with us to support the acceleration of trade digitalisation and streamlining of the supply chain process.”
Rio Tinto head of commercial operations Laure Baratgin said: “As the largest dry bulk shipper in the world, one of our ambitions has been to continuously improve the experience of doing business with Rio Tinto for our customers and supply chain through innovative end-to-end digital solutions. We fully support the 25 by 25 pledge on the use of electronic bills of lading – as a key step in enabling faster, more secure and traceable trade flows, and bringing the industry closer to a full digital trade future.”
Vale sales administration manager Erick Tavares said: “Vale takes great pride in being among the first to sign the 25 by 25 pledge. Innovation and digitalization are levers for us to reach our ambitions, and over the past decade, we have worked tirelessly to digitize our operations both internally and externally, always with a focus on enhancing the customer experience. By signing the pledge, we are reaffirming our dedication to advancing our digitalization process and inviting our customers and partners to join us on this exciting journey that benefits the entire supply chain.”
Anglo American executive head of marketing Timo Smit said: “At Anglo American, we are committed to supporting initiatives that help to drive innovation and efficiency in our products’ supply chains. Digitisation is a key enabler for such a drive and the use of electronic bills of lading is a natural part of this journey. We are proud to be a signatory to the 25 by 25 pledge.”
