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APEC COMMITS TO PROMOTING USE OF ELECTRONIC BILL OF LADING (EBL)
December 10, 2024
The leaders and trade ministers of the Asia Pacific Economic Cooperation (APEC), which covers more than 60% of global trade, concluded their summit on November 16 by issuing declarations, including a strong commitment to promoting the use of electronic trade-related documents, particularly the electronic Bill of Lading (eBL).
Research has shown that switching away from the transfer of physical, paper-based Bills of Ladings could save stakeholders around US$6.5 billion in direct costs, enable US$30-US$40 billion in annual global trade growth, transform the customer experience, and improve sustainability.
The Digital Container Shipping Association (DCSA) said the "Machu Pichu Declaration" from the APEC convention recently held in Peru is a major milestone in unlocking these benefits for all stakeholders in international trade.
"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," said Leah Liston of the United States Trade Representative, executive office of the President.
The commitment of the APEC economies is much welcomed and celebrated by the container shipping industry.
Last year, the CEOs of the DCSA members, which cover 75% of global containerised trade and issue 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[4], which was signed by many cargo owners, banks, freight forwarders and IT solution providers.
DCSA noted in the statement that despite the obvious benefits and industry commitment, barriers to achieving 100% eBL remain, and not all barriers can be addressed by the industry itself.
"Indeed, legislation and government procedures can complicate or even prevent the use of the eBL," it said.
In 2024, DCSA published a report pinpointing legal and regulatory barriers for 100% eBL and was invited to share its findings and discuss solutions with the APEC members.
"It is great that in times of geopolitical challenges, global leaders agree that cooperation 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," said Thomas Bagge, CEO of DCSA.
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 transparency, efficiency, and reliability of trade by digitalising key processes and the recognition of electronic trade-related documents, such as the eBL.
As well as being an excellent host of the APEC summit, the Ministry of Foreign Trade of Peru (Ministerio de Comercio Exterior y Turismo) took a leading role in ensuring that the digitalisation of the Bill of Lading is made a priority at the highest levels of global politics.
Teresa Mera Gomez, vice minister of foreign trade of the Ministry of Foreign Trade and Tourism of Peru, the country host of the APEC summit this year, Peru's foreign trade policy strategically focuses on enhancing physical and technological infrastructure to facilitate trade, with a particular emphasis on promoting paperless trade through the digitalisation of key foreign trade documents, such as the electronic Bill of Lading (eBL).
"The adoption of advanced technologies and the integration of electronic records are crucial for optimising the efficiency and resilience of global supply chains. Collaboration with key industry stakeholders, such as the DCSA and the other FIT Alliance members, is vital for establishing global standards and accelerating adoption."
As a follow-up to the Machu Pichu Declaration, the APEC economies will now work towards aligning their legal frameworks, including with the UNCITRAL Model Law on Electronic Transferable Records (MLETR), and improving trade facilitation through digitalisation, automation, and international standards while strengthening border agency cooperation.
