How Successful have Electronic Bills of Lading Been? (Essay Sample)

HOW SUCCESSFUL HAVE ELECTRONIC BILLS OF LADING BEEN?
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc103803392 \h 3The Bill of Lading (BoL) PAGEREF _Toc103803393 \h 3The Electronic Bill of Lading (eB/L) PAGEREF _Toc103803394 \h 4eB/L Has Not Been Widely Accepted PAGEREF _Toc103803395 \h 5Legal issues PAGEREF _Toc103803396 \h 5Standardization and Interoperability Issues PAGEREF _Toc103803397 \h 6Technical Barriers PAGEREF _Toc103803398 \h 7People have started Accepting the Electronic Bill of Lading PAGEREF _Toc103803399 \h 7Improved Speed of Sharing Information PAGEREF _Toc103803400 \h 7Reduced Cost of Operation PAGEREF _Toc103803401 \h 8Improved Data Security, Validity and Accuracy PAGEREF _Toc103803402 \h 9Covid-19 and Adoption of eB/L PAGEREF _Toc103803403 \h 10Conclusion PAGEREF _Toc103803404 \h 11Bibliography PAGEREF _Toc103803405 \h 13
Introduction
Over the past few decades, technology has advanced significantly, which has resulted in improvements in various sectors, including international trade. For example, heavy paperwork has characterised international trade as far as the conventional Bill of Lading is concerned. Shipment of goods from one country to another has entailed a lot of paperwork, a tedious operation, marred with practical issues, and prone to fraud. Since the 1980s, there have been efforts to substitute the conventional paper-based Bill of Lading with the Electronic Bill of Lading (eB/L). The Electronic Bill of Lading is also referred to as E-Bill of Lading, Electronic Bill, or Digital Bill of Lading. The international trade sector has been relatively slow in embracing this technology. Nonetheless, for the past few years, organizations such as BOLERO and ESS, two of the major providers of eB/L, have been certified by the International Group of P&I Clubs to offer international importers and exporters crucial shipment services. Since this approval, the number of exporters and importers using BOLERO and ESS platforms for E-Bills Lading services has increased substantially.[K A A N Thilakarathna, 'Using An Electronic Bill Of Lading As A Document Of Title: Prospects And Challenges' (2022) 25 The Bar Association Law Journal.] [Marek Dubovec, 'The Problems And Possibilities For Using Electronic Bills Of Lading As Collateral' (2006) 23 Arizona Journal of International and Comparative Law.] [Sanelisiwe Princess Ngcobo, 'A Comparative Study Of The Paper And Electronic Bill Of Lading Under South African Law' (University of KwaZulu-Natal 2017).]
The Bill of Lading (BoL)
The Bill of Lading (BoL), also called the waybill, refers to the document the carrier issues to the shipper. It is used in international trade as proof of shipment or to provide evidence of a transaction between two and sometimes three parties. Such a document is extremely crucial in international trade because it provides the 'title' as to whom the shipped cargo legally belongs. Furthermore, BoL acts as proof of cargo receipt, carriage contract, and title documents to the transported cargo. The goods' owner, who is the holder of the BoL, has the lawful right to claim the freights or handover proprietorship of the goods to other parties in a particular supply chain. The document displays payment terms and other conditions agreed upon between the seller and buyer. In most cases, sellers and buyers agree to pay the deposit to suppliers and then arrange the payment of the balance upon receiving the Bill of Lading, meaning that the shipper will use the document as security and can only send its copy and other transport documents to the customer as evidence that cargo has been successfully shipped and request the outstanding balance.[K A A N Thilakarathna, 'Using An Electronic Bill Of Lading As A Document Of Title: Prospects And Challenges' (2022) 25 The Bar Association Law Journal.] [Oluwaseun Ajaja, 'Electronic Bills Of Lading: An Easier Way To Sea Carriage' (SSRN 2015) accessed 22 May 2022.] [Torsten Schmitz, 'The Bill Of Lading As A Document Of Title' (2011) 10 Journal of International Trade Law and Policy.] [Majid Reza Arab Ahmadi, Mostafa Elsan and Ibrahim Noshadi, 'Comparative Study Of Bill Of Lading Function As Title Document' (2016) 10 Journal of Politics and Law.] [Hariesh Manaadiar, 'Which Is The Most Important Function Of A Bill Of Lading And Why.."' (Shipping and Freight Resource, 2021) accessed 22 May 2022.] [Zhipeng Cui and Pengfei Zhang, 'Using Electronic Bill Of Lading As A Solution For Delivering Cargo Without Presentation Of The Original Bill Of Lading' (2022) 1 International Journal of Research in Humanities and Social Studies.] [Akram Elentably, 'The Advantage Of Activating The Role Of The EDI-Bill Of Lading And Its Role To Achieve Possible Fullest' (2018) 6 International Journal on Marine Navigation and Safety of Sea Transportation.] [Luh Putu Sudini, Ni Wayan Sitiari and Ni Putu Pertamawati, 'Bill's Of Lading Implication In International Trade' (2017) 60 Journal of Law, Policy and Globalization.] [Liton Chandra Biswas, 'A Discussion And Analysis Of The Bill Of Lading As A Document Of Title' (University of Turin; Independent University Bangladesh 2011) accessed 22 May 2022.]
The Electronic Bill of Lading (eB/L)
eB/L refers to a new version of the traditional Bill of Lading. It performs the same purpose as BoL but improves the speed of operation and security and accuracy of information. The transfer of crucial information about the international shipment relies on the physical bill of Lading document, processed and posted by shippers from one country to the consignee in another country. Through eB/L, the information in the Bill of lading is conveyed almost immediately to various parties in a particular supply chain. Upgrading the conventional Bill of Lading has several benefits for various parties in a global supply chain. The conventional Bill of Lading is manual, difficult to share with various parties in a supply chain, and slow. Digital Container Shipping Association indicates that the sector of container shipping could save approximately $4 billion annually by adopting eB/L. This is because shippers will be in a position to quickly share data and information with carriers and create the Bill of Lading that can easily be shared with consignees, freight forwarders, and banks, among other parties in a given supply chain.[Paul Todd, 'Electronic Bills Of Lading, Blockchains And Smart Contracts' (2019) 27 International Journal of Law and Information Technology.] [Nompumelelo Portia Ngcobo, 'Practicability Of Successfully Achieving A Paperless Sea Trade: Electronic Vs Paper Bills Of Lading' (University of KwaZulu-Natal 2018).] [Susan Beecher, 'Can The Electronic Bill Of Lading Go Paperless?' [2006] The International Lawyer.] [Miriam Goldby, 'Chapter Iii Facilitating The Transition To Paperless Trade: The Role Of Single Windows Miriam Goldby' (Trade Facilitation and the WTO 2019).] [Åke Nilson, 'Electronic Bills Of Lading — Planning For Areas Of Risk' (1995) 2 Journal of Financial Crime.] [Vasileios Ziakas, 'Challenges Regarding The Electronic Bill Of Lading (Ebol)' (2018) 4 International Journal of Commerce and Finance.] [Junfeng Li, 'Research On Private International Law Of Electronic Bill Of Lading' (2020) 2 International Journal of Frontiers in Engineering Technology.] [Stefan Wunderlich and David Saive, 'The Electronic Bill Of Lading' [2019] Advances in Intelligent Systems and Computing.] [Mustafa Emre Civelek and Abdurrahman Özalp, 'Blockchain Technology And Final Challenge For Paperless Foreign Trade.' (2018) 15 Eurasian Academy of Sciences Eurasian Business & Economics Journal.]
eB/L Has Not Been Widely Accepted
Legal issues
While the new waybill has several benefits over the traditional ones, it has taken several years to be fully accepted in the international trade sectors. The following paragraphs examine factors that have resulted in this trend. When the Bill of Lading was enacted in 1885, its drafters aimed to protect various parties participating in a particular international transaction. The absence of this bill would mean that ship-owners carriers can try to evade liabilities for damage or loss of goods owned by the holder of the Bill of Lading. The traditional waybill is based on a robust legal framework, making it possible for various stakeholders in a particular supply chain to solve various legal matters arising from the shipment of goods internationally. While the Electronic Bill of Lading has been around for three decades, it lacks an effective legislative framework, as observed in the traditional Bill of Lading. Today's legal framework generally supports the application of paper documents. Although some countries acknowledge the Electronic Bills of Lading, it is usually an exception, meaning that only a small percentage of goods are shipped under the Electronic Bill of Lading.[Aaron Flaaen and others, 'Bill Of Lading Data In International Trade Research With An Application To The COVID-19 Pandemic' (Federal Reserve Board 2022) accessed 22 May 2022.] [Kourosh Majdzadeh Khandani, 'Rights And Liabilities Of The Consignees/Endorsees: A Comparative Study Of The Rotterdam Rules And English Law' (The University of Manchester 2018).] [Krailerk Euarjai, 'International Carriage Of Goods By Sea: Problems In Bills Of Lading And Their Impact In Australia And Its Major Trading Partners In Asia' (PhD, University of Tasmania 1999).] [Ali Abbas Khayoon Al-Naseri, 'The Legal Recognition Of Electronic Bills Of Lading' (PhD, World Maritime University 2020).] [Xiaohao Zhu, Zhipeng Cui and Pengfei Zhang, 'The Role Of Electronic Bill Of Lading And Challenges To The Current Legal Framework' (2022) 12 Journal of Shipping and Ocean Engineering.] [Thi Mai Anh Doan, 'Swi...