Tag Archive for: freight transport

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Electronic Bills of Lading

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Digital documents

Lately there has been a lot of hype about electronic Bills of Lading, which is why we wanted to get back to basics and go over this innovation. So let’s get down to it:

What is the eBL?

The Electronic Bill of Lading (eBL) is an electronic version of the traditional paper-based Bill of Lading used in the shipping industry. The Bill of Lading is a legal document that serves as evidence of the contract of carriage between the shipper and the carrier, proof of ownership, and acts as a receipt for the goods being transported. In the past, it was always a paper document, but with the advancement of technology, it is now possible to issue transmit, and store it electronically.

The eBL has the potential to revolutionize the shipping industry by reducing the time and cost of handling physical documents, eliminating the risk of loss or damage to paper documents, and enabling faster and more secure transactions. However, the adoption of eBLs has been slow due to various legal, technical, and commercial challenges.

What are the challenges?

Despite their incredible potential, there are challenges that need to be addressed before eBLs can become more widely adopted in the shipping industry. One of the main challenges is the lack of standardization in the use of eBLs. There are currently multiple electronic platforms and technologies available for the issuance, transfer, and storage of eBLs, which can create confusion and inefficiencies for users.

To address this challenge, various industry associations and standards bodies, such as the International Chamber of Commerce (ICC) and the International Association of Ports and Harbors (IAPH), have developed guidelines and standards for the use of eBLs. These guidelines aim to promote standardization and interoperability between different electronic platforms and technologies.

A second big challenge is “the difficulty in converting the BL to a digital format without allowing it to be duplicatable (as without proper systems in place it could potentially be duplicated to the infinitum)” – says Jaime Paz from the Ocean Network Express. As the main function of the Bill of Lading is the condition of title of ownership, it is important to ensure that the risk of duplication is minimised or eliminated completely. Today it is possible to have unique digital titles of ownership thanks to blockchain technology, as encryption systems used are strong enough to transfer digital documents without the risk of being duplicated.  As an NFT, eBL is not only a digital file, but the registry of the ownership is implicit in it.  This way, every change in the eBL process can be registered in a blockchain, in which the information is 100% immutable and 100% auditable.

A final challenge is the resistance to change from stakeholders who are accustomed to traditional paper-based processes. Many shippers, carriers, and banks are still hesitant to adopt eBLs due to concerns about the legal validity, security, and reliability of electronic documents.

To address these concerns, industry stakeholders are working to educate and raise awareness about the benefits of eBLs and to provide training and support for users. For example, the International Group of P&I Clubs has developed a training program for its members on the use of eBLs, and various industry associations have organized workshops and seminars to promote the adoption of eBLs. The DCSA (Digital Container Shipping Association) is also working on towards end-to-end digitalisation of the shipping documentation process – having published the DCSA electronic bill of lading (eBL) standards. The goal with these is to ultimately increase transparency, enhance efficiency, and make compliance easier, therewith eliminating paper from international trade.

 

A spotlight on Europe

In recent years, there have been several developments in Europe aimed at promoting the use of eBLs. One of the most significant developments is the adoption of the UNCITRAL Model Law on Electronic Transferable Records (MLETR) by the United Nations Commission on International Trade Law (UNCITRAL) in 2017. The MLETR provides a framework for the use of electronic transferable records, including eBLs, and aims to remove legal barriers to their use.

Several European countries have already incorporated the MLETR into their domestic laws, including Denmark, Estonia, Finland, France, Greece, Italy, the Netherlands, Norway, Spain, and Switzerland. These countries have recognized eBLs as legally valid and enforceable documents, and they have established electronic platforms for the issuance, transfer, and storage of eBLs.

For example, the Port of Rotterdam in the Netherlands launched its blockchain-based platform, DELIVER, in 2019, (now Naviporta) which allows users to issue, transfer, and store eBLs. DELIVER is a joint initiative between the port authority, the municipality of Rotterdam, and various industry stakeholders, and it aims to promote the use of eBLs and other digital solutions in the logistics industry.

Additionally, there have been other developments to help the adoption of eBLs in Europe. One of those was championed by the International Group of P&I Clubs, which represents the world’s major marine insurers. They have issued guidelines for the use of eBLs in the insurance industry, which provide a framework for the issuance, transfer, and storage of eBLs, and they aim to ensure that eBLs are accepted and recognized by insurers.

Final thoughts

Despite the challenges, the adoption of eBLs in Europe is gaining momentum, driven by the potential benefits of faster, cheaper, and more secure transactions. The COVID-19 pandemic has also accelerated the shift towards digital solutions in the shipping industry, as it has highlighted the inefficiencies and vulnerabilities of traditional paper-based processes.

In conclusion, the Electronic Bill of Lading is a promising technology that has the potential to revolutionize the shipping industry by reducing costs, increasing efficiency, and improving security. While there are still challenges to be addressed, the adoption of eBLs in Europe is gaining momentum, driven by the efforts of industry stakeholders to promote standardization, raise awareness, and provide training and support for users. As the use of eBLs becomes more widespread, it is expected to bring significant benefits to the global economy by facilitating faster and more secure international trade transactions.

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Back to Basics: Port Terminals

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Normally, it is easy to think about a particular port as one, indivisible entity. However ports themselves have a number of actors that comprise the overall port community. Just like pieces of a puzzle, port terminals are the different parts that make up a port. In this article we take a closer look at port terminals, looking at the kinds of port terminals that exist and at their corresponding characteristics.

What are Port Terminals?

“Ports are harbour areas in which marine terminal facilities are transferring cargo and passengers between ships and land transportation” by Dr. Jean-Paul Rodrigue and Dr. Theo Notteboom

Essentially, ports are areas where land and sea merge and where cargo ships and vessels dock to load and unload cargo, fuel and passengers. To facilitate this, ports are hosts to terminals. Depending on the size, they can have one terminal or several. These terminals, in turn, are specialised in the handling of the different types of cargo.

Terminals can be divided into three major categories:

  1. General Cargo (unitized cargo)
  2. Bulk Cargo (loose cargo)
  3. Passengers (passengers and vehicles)

Furthermore, within this division of categories of port terminals, more divisions can be identified, each serving a different purpose and classified by the type of traffic or cargo that is processed.

Divided by types of cargo these are:

Diving deeper, we can take a closer look at how these types of terminals operate.  Let’s take a closer look at these terminal types.

  1. Container terminals

Perhaps the most easily recognised terminals in (cargo) ports are ones that can process containers. These terminals are designed to handle the large containers that are used to transport goods across the world. They have cranes and other handling equipment to move containers from ships to trucks or trains for further transportation.

  1. Roll-on/Roll-off (RoRo) terminals

As its name indicates, these terminals are used for vehicles -to roll on and off- like a cars, trucks, and buses that are driven onto ships for transportation. They have ramps or elevators to load and unload vehicles. A modern Roll-on/Roll-off (Ro-Ro) terminal is a facility designed to handle the loading and unloading of vehicles from ships quickly, efficiently and safely.

  1. Liquid terminals

When talking about liquid terminals we intend those handling liquids such as petroleum, chemicals and liquefied natural gas. For this, they have pipelines and storage tanks for the transfer of liquids from ships to land-based storage facilities.

  1. Dry bulk terminals

For handling dry cargo such as grain, coal, and minerals exist Dry Bulk Terminals. They have storage silos and conveyor systems to move the cargo from ships to storage or onto trucks and trains. These terminals are designed to ensure the safe and efficient handling of these goods, while minimizing the risk of damage or spoilage.

  1. Breakbulk terminals

These terminals exist for the handling of cargo that is too large or too heavy to be shipped in standard shipping containers. This type of cargo includes heavy machinery, steel, and lumber that is not packaged in containers, oversized equipment, etc. They have cranes and other handling equipment to move the cargo from ships to trucks or trains. Modern breakbulk terminals use technology to streamline the handling of cargo and minimize the risk of damage or loss, while also incorporating environmentally sustainable practices

  1. Passenger terminals

 Designed to handle the boarding and disembarking of passengers on cruise ships and ferries, they tend to  include amenities such as baggage storage, restaurants, and shopping areas for tourists. Modern passenger terminals are designed to provide a comfortable and efficient experience for passengers, while also ensuring the safety and security of people on board and their belongings, while also incorporating environmentally sustainable practices.

Conclusion

To summarise then it can be said that the type of terminal found in a port depends on the types of cargo and vessels that frequent the port. Some terminals specialize in handling specific goods, such as containers or liquids, while others are equipped to handle dangerous goods. Each terminal has its own unique features and facilities to handle specific types of cargo efficiently and safely. What determines the number of terminals in a port is the size of the traffic that frequents it – busier ports with better connections tend to be hosts to more terminals than smaller enclaves. Nevertheless all of them depend on the efficient management of said terminals and their successful operation is connected to the successful network within the existing port community.

If you are interested to know more, or if you’d like to witness port operations to a vessel or to goods, get in touch and check out our upcoming annual summer school on port operations.

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