COSCO Shipping Bulk Co Ltd, a subsidiary of State-owned China COSCO Shipping Corp, has successfully issued the first-ever electronic bill of lading (eBL) for bulk cargo. This was made possible through collaboration with its clients and the utilization of blockchain technology on the Global Shipping Business Network (GSBN) platform.
The initiative aims to enhance and expedite the secure and efficient execution of cross-border trades concerning bulk cargo. It marks a significant milestone in the application of the IQAX eBL electronic bill of lading system, specifically tailored for the dry bulk shipping sector, as stated by the Guangzhou-based COSCO Shipping Bulk in a recent press release.
Developed by Hong Kong-based IQAX Ltd, the IQAX eBL serves as a solution to connect the entire industrial chain, encompassing international finance, trade, and shipping businesses.
The eBL was successfully applied to a shipment of 75,000 metric tons of coal, expertly transported by a Panamax-type vessel, owned by COSCO Shipping Bulk, from Newcastle Port, Australia, to China. Upon issuance by COSCO Shipping Bulk, the eBL underwent a smooth and efficient confirmation process, facilitated through an online platform, involving various collaborative parties within the business chain. Notable participants included Yancoal Australia Ltd, Yankuang (Hainan) Intelligent Logistics Technology Co Ltd, and Xiamen International Trade Energy Co Ltd.
The implementation of the electronic bills of lading reduces the need for letters of indemnity, mitigating both legal and commercial risks while expediting delivery and streamlining processing procedures. Furthermore, the adoption of this technology is contributing to a greener environment by minimizing reliance on paper documents, thus reducing carbon emissions.
COSCO Shipping Bulk emphasizes that the electronic bill of lading system will play a pivotal role in fostering more efficient and cost-effective international bulk cargo trade practices. Particularly fostering collaboration between mining companies, traders, end-users, and banks, the technology streamlines the entire trade process and promotes trade acceleration.
The successful issuance of the blockchain-based eBL is expected to set new industry standards, encouraging other shipping companies to follow suit in embracing technology-driven solutions for safer, faster, and more sustainable international trade.
Source: China Daily, COSCO Shipping.com.cn