COSCO SHIPPING Lines (COSCO SHIPPING), Hutchison Ports, PSA International (PSA), Saudi Basic Industries Corporation (SABIC) and Global Shipping Business Network (GSBN) have signed a non-binding memorandum of understanding (MoU) to enable paperless trade.
The five-way MoU was signed during a signing ceremony held at the ICC Future Trade Forum in Singapore under this year's theme of "Digitization of Trade Through New Technology and Digital Standards."
The MoU will see all signatories leveraging the electronic Bill of Lading (eBL) for export shipments by SABIC via COSCO SHIPPING to ports in Asia controlled by Hutchison Ports and PSA.
SABIC is a global leader in the chemicals industry, making different kinds of products, from chemicals, commodities and high-performance plastics, to agri-nutrients and metals.
It is collaborating with GSBN — an independent not-for-profit technology consortium building a trusted platform designed to redefine global trade — and its partners across the Asia Pacific region, utilising GSBN's data infrastructure to create a paperless, secure and efficient shipping process.
Driving eBL adoption
Structured data from the eBL issued via GSBN's data infrastructure will also be used by Cargo Release to enable a fully digital solution, which connects everyone involved at the ports of import to enable the secure and paperless release of containers.
"The objective of the MoU is to boost efficiency and reduce the environmental impact throughout the shipping process," the announcement said.
It added that the GSBN platform also facilitates even closer collaboration between the carrier and ports by breaking down data siloes between them to unlock the power of digitisation, as well as enable new value to customers such as SABIC.
"It is encouraging to see impetus in driving eBL adoption. GSBN is ready to step up to be the platform which brings these initiatives to life. What is exciting about this collaboration is the ability to demonstrate the value of end-to-end eBL adoption with Cargo Release," said Bertrand Chen, CEO at GSBN.
"The infrastructure we have built will serve as the trusted hub, enabling orchestration between these different parties to improve operational efficiency and supporting the possibility for future applications that can unlock new value beyond the supply chain," he added.
The announcement follows recent efforts from the Digital Container Shipping Association (DCSA), The Baltic and International Maritime Council (BIMCO) and the International Chamber of Commerce (ICC) to encourage eBL adoption, as well as GSBN's collaboration with these standard bodies to support different types of eBL from container to bulk.
Furthermore, GSBN's Trade Finance Advisory Group, comprised of global banks, will also offer a platform for future collaboration in the area of trade finance.
Capt. Song Weijun, general manager, New Golden Sea Shipping Pte. Lt at COSCO SHIPPING Lines said the partnership would further accelerate eBL adoption.
"GSBN's collaboration with different industry players makes its infrastructure an ideal platform to unlock the holistic potential of eBLs and new technology," Weijun added.
Andy Tsoi, managing director of Middle East and Africa at Hutchison Ports, tagged the MoU as "another milestone" in the port operator's strategy to develop new technologies to enable modern, world-class ports.
"GSBN's Cargo Release is a proven solution which is already delivering very tangible benefits, and we are confident this collaboration will further bring to life the value the consortium's platform can deliver," he added.
Kam Poh Yuen, assistant vice president (Platform) Group Commercial at PSA International, for his part, also welcomed the five-way MoU.
"PSA is pleased to support and accelerate the adoption of digitally-enabled maritime trade," Kam Poh Yuen said.
"This latest MoU is an ambitious but important partnership to demonstrate the power of eBL and modern technologies, such as GSBN's platform, to create new value for stakeholders and to inspire others in the industry," he added.