As the world continues to go deeper into the world of digitization, the shipping industry is not left behind. From e-Commerce, e-Form M to Electronic Bill of Lading, the conversation for increased digitization of shipping processes and documents is gaining unprecedented momentum. Tech-minded stakeholders are contemplating the possibility of an Electronic Bill of Lading, and the idea has begun to resonate with large-scale acceptance even among industry conservatives. It is important to evaluate the current paper-based Bill of Lading and explore the benefits of an e-Bill of Lading.

A Bill of Lading (BL or BOL) is traditionally paper-based evidence of a shipping contract issued by an ocean carrier to a shipper with detail of the goods being carried to the port of destination. It is moved from shippers to consignees, causing serious waste of time and unnecessary expenses. Originally, the term “bill” is defined as a printed or written statement of the cost for the goods or services delivered or to be delivered.

Types of Bill of Lading

1. Ocean Bill of Lading
2. Inland Bill of Lading
3. Uniform Bill of Lading
4. Claused Bill of Lading
5. Negotiable Bill of Lading
6. Non-negotiable Bill of Lading
7. Clean Bill of Lading
8. Through Bill of Lading

What is an Electronic Bill of Lading?

An electronic bill of lading (eB/L) is a digital version of a traditional shipping document that serves as a receipt of goods transported by a carrier, typically by sea or air. It serves as evidence of the contract of carriage and the terms of delivery. The electronic format of the document provides more efficiency and speed in comparison to the traditional paper-based bill of lading.

How does an Electronic Bill of Lading work?

In view of the current digitization drive, electronic Bill of Lading becomes is beginning to gain relevance, and its key advantages can be considered as shown below:

Advantages of Electronic Bill of Lading

Efficiency: With an electronic Bill of Lading, the required information is registered online and sent to consignees without delays or interference. It enables the efficient flow of information pertaining to the carrier, contact detail of consignee, notify party, detailed list of goods being transported, number of packages and kind of packaging, weight and/or volume of the cargo, each package’s freight class, terms of payment (which is optional) and special handling instructions. This promotes transparency because it provides simultaneous access to information by all the parties involved.

Lower Chances of Error: Since the Bill of Lading is a vital ocean shipping document, processing it electronically helps to identify and eliminate potential errors during online registration due to the availability of forms that can be quickly corrected with standard autocomplete functions.

Improved Security: Since the electronic Bill of Lading helps to eliminate the physical movement of paper-based Bill of Lading, there is a potential risk of fraud while shipping. It encourages safety.

Cost Reduction: The adoption of an e-Bill of Lading can significantly reduce the administrative cost associated with the paper-based Bill of Laden for global players, which can run into millions of dollars annually.

Transparency: The eB/L system provides real-time updates and transparency throughout the shipping process. All parties involved in the shipment can access the latest information and track the status of the shipment.

How has the Electronic Bill of Lading revolutionized the shipping industry?

The introduction of the eB/L has brought significant changes to the shipping industry. It has improved the shipping process’s efficiency, transparency, and security, reducing costs and improving customer satisfaction. The eB/L system has also paved the way for further innovation in the shipping industry, such as the use of blockchain technology to improve supply chain visibility and reduce fraud.

The conversation on exploring an efficient option as the e-Bill of Lading has not only gained traction. Still, it has become an increasingly attractive option against a costlier paper-based option. Many shipping companies have adopted the idea, providing a unique opportunity for global forwarders to take advantage of this innovative idea for the foregoing reasons.

Conclusion:

The electronic bill of lading (eB/L) is a game-changer in the shipping industry. Its benefits of efficiency, transparency, cost savings, and improved security have revolutionized the way goods are transported. The shipping industry continues to evolve, and the eB/L is an excellent example of how technology can be used to improve processes and create a better customer experience.