FIT Alliance launches electronic Bill of Lading declaration

The aim of the declaration is to secure commitment from all stakeholders in international trade to collaborate on driving digitalisation, starting with eBLs, within their industries.

A FIT Alliance statement explains that every year, ocean carriers issue around 45M Bills of Lading. Currently, many international shipping documents are not standardised, and most are still paper based, requiring a physical hand-off between participants. Adopting eBLs will enable the trade industry to benefit from faster transactions, cost savings from the reduced administrative cost of cargo holding and document processing, and lower fraud risks through the use of digital authentication systems.

The statement said, “In 2022, only 2.1% of Bills of Lading and waybills in the container trade were electronic. This is despite the fact that end-to-end digitalisation of trade documentation, starting with eBLs, will cut costs, make international trade more efficient, reliable, secure, sustainable and less susceptible to illegal activity or fraud.”

A McKinsey study estimates that if eBLs achieved 100% adoption in the container sector, it could unlock US$30-40Bn in global trade growth by reducing trade friction. It could also significantly reduce carbon emissions by eliminating paper.

“A universal eBL will benefit all stakeholders involved in the global supply chain, whether in bulk shipping or container shipping. Achieving widespread adoption of a standards-based eBL will benefit not only the shipping industry, but also the global movement of goods, at a time when supply chain resilience is challenged,” the FIT Alliance said in its common statement, adding, “This declaration is a significant symbol of our joint dedication to shape the future of shipping. Transforming document exchange through a globally applicable eBL will accelerate trade digitalisation to the benefit of customers, banks, customs, government authorities, providers of ocean shipping services and all other stakeholders.”

The FIT Alliance was formed in 2022 by BIMCO, DCSA, FIATA, ICC and Swift. In forming the alliance, the groups have united behind the mission to standardise the digitalisation of international trade.

DCSA head of digital trade Niels Nuyens said, “We are happy that our partners have signed up to this new agreement that will help accelerate trade digitalisation through a globally applicable eBL to the benefit of an incredibly diverse set of stakeholders from customers to government regulators, through to shipping services from every industry. To achieve the widespread use of eBLs, we must all be on board with adopting digital BL standards. This agreement from our diverse industry associations is an exciting milestone in our journey towards standardising all container shipping documentation through our shared initiative.”