APEC milestone for electronic bill of lading

The leaders and trade ministers of the Asia Pacific Economic Cooperation (APEC), covering more than 60% of global trade, have concluded their summit by issuing declarations which include a strong commitment to promoting the use of electronic trade-related documents, and the electronic Bill of Lading (eBL) in particular.

A statement from Digital Container Shipping Association (DCSA) said research has shown switching away from the transfer of physical, paper-based Bills of Lading could save stakeholders around US$6.5Bn in direct costs, enable $30-40.0Bn in annual global trade growth, transform the customer experience, and improve sustainability.

The statement added, “The ’Machu Pichu Declaration’, of the APEC leaders is a major milestone to unlocking these benefits for all stakeholders in international trade.”

United States trade representative Leah Liston said, “APEC’s focus this year on the eBL, and the underlying laws and technology needed to operationalise them showed great promise. Digitalisation of trade documents and procedures is the next step in trade facilitation for sustainable and inclusive growth. The progress made this year shows APEC is taking on the challenge and our traders are benefiting from it.” 

The commitment of the APEC economies is much welcomed by the container shipping industry, noted the DCSA. Last year, the chief executives of the members of the DCSA, covering 75% of global containerised trade and issuing the vast majority of bills of lading, also committed to achieving 100% eBL. Additionally, the members of the FIT Alliance (BIMCO, DCSA, FIATA, ICC and Swift) launched an eBL declaration which was signed by many cargo owners, banks, freight forwarders and IT solution providers.

DCSA chief executive Thomas Bagge said, “It is great that in times of geopolitical challenges, global leaders agree that co-operation to achieve digitalisation and standardisation of trade is the way forward. At DCSA, we are proud and honoured to be able to contribute to this great milestone in trade digitalisation and remain equally committed to achieving 100% eBL by collaboration with all stakeholders of global supply chains.”

As part of the Machu Pichu Declaration, the APEC leaders reaffirmed their commitment to enhance supply chain connectivity. In particular, the leaders want to enhance the transparency, efficiency and reliability of trade by digitalising key processes, and the recognition of electronic trade-related documents, such as the eBL.

As a follow up to the Machu Pichu Declaration, the APEC economies will work towards aligning their legal frameworks, including with the UNCITRAL Model Law on Electronic Transferable Records, and improve trade facilitation through using digitalisation, automation and international standards, while strengthening border agency co-operation.