Trade documents solutions provider CargoX has gone live with its partnership with Korean container carrier HMM, providing the electronic bill of lading (eBOL) technology to the eight largest global carrier.
“The benefits of using electronic bills of lading are clear — all actors in the trade flow save time and money, all while increasing reliability and security,” CargoX CEO Bojan Čekrlić told FreightWaves by email on Monday.
“There are direct cost reductions from not having to buy, print, sign, manipulate by hand, pack and send off paper documents,” he said. “Indirect savings are even greater. … Features of [eBOLs] enable companies to reduce their carbon footprint drastically, improve data management, elevate compliance with environmental regulations, as well as increase transparency and accountability.”
Related: CargoX proof of concept showcases interoperability for global trade eBOLs
A 2022 McKinsey study on the potential impact of digitalizing trade documents found that by reducing the need for up to 50 sheets of documents coming from potentially 30 different parties, eBOLs could reduce trade costs by $6.5 billion while opening up $40 billion in new trade.
CargoX also announced that the eBOL format will be built around the proposed structure by the Digital Container Shipping Association, a nonprofit made up of nine ocean carriers including HMM. The group published its standards for eBOLs in 2020, aligned with the reference data model proposed by the United Nations Center for Trade Facilitation and Electronic Business.
Past digitalization work
This is not CargoX’s first digitalization partnership. The company has worked with multiple government agencies to facilitate the technology to adopt eBOL data and workflow standards.
In 2022, Slovenia-based CargoX grew its partnership with the Egyptian government to facilitate global trade document transfers using blockchain technology through Misr Technology Services, a solution that supports Egypt’s National Single Window for Foreign Trade Facilitation (NAFEZA).
The solution streamlines customs procedures, reducing required documents from 18 to six.
Related: Q&A: Standardizing supply chain data exchange for ocean transport
Part of Egypt’s 2030 Vision, NAFEZA integrates over 26 government systems and handles around 12,000 transactions daily.
CargoX was also selected in 2023 to support Uganda’s Presidential Advisory Committee on Exports and Industrial Development (PACEID) in developing the TradeXchange platform to enhance the country’s export growth. PACEID aims to achieve $6 billion in exports over five years.
“All this is geared toward building greater supply chain resilience by reducing dependency on physical documents that may be susceptible to loss, damage or fraud during transit. It not only streamlines documentation processes but also embeds robust security features that mitigate risks of fraud and ensure compliance with international regulations,” said Čekrlić.
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