Today, around 96% of commercial documents used in international maritime transport are still paper-based.¹ Unfortunately, 11 billion metric tons of cargo are shipped each year with 44.5 million paper documents.² But on February 15, 2023, DCSA announced a multilateral contractor agreement to increase the use of electronic Bills of Lading (eBL) to 100% by 2030.The announcement highlighted that eBL could save $6.5 billion in direct costs, generate $30-40 billion in annual global trade growth, and improve environmental sustainability.⁴
Disruption and the case for digital standards
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DCSA’s member carriers commit to a fully standardised, electronic bill of lading by 2030
⁴Bknz. 3 nolu dipnot.
Before we get into the subject, I would like to explain what a bill of lading is
it’s worth remembering:
What is a bill of lading?
According to Article 1228 of the Turkish Commercial Code, a bill of lading is “a bill evidencing the conclusion of a contract of carriage, showing that the goods have been received by the carrier or loaded on board the ship, and that the carrier is obliged to deliver the goods only upon presentation thereof.” The legitimate holder of the bill of lading is authorized to take delivery of the goods (Art. 1230/1 TCC). Thus, the bill of lading has the functions of proving (i) the receipt of the goods, (ii) the conclusion of a contract of carriage, and (iii) the ownership of the goods.⁵
What is an e-Bill of Lading?
Article 1/18 of the Rotterdam Rules defines an electronic bill of lading, but not exactly an electronic bill of lading.
Electronic transportation record according to this definition: “Information contained in one or more messages created by the carrier by means of electronic communication within the scope of the contract of carriage, which is attached to the electronic record of carriage at the time of or following the issuance of the electronic record of carriage by the carrier, or which otherwise becomes part of the electronic record of carriage by association, including information that can be properly associated with the electronic record of carriage: (a) proves that the Carrier or the Carriage Related Performing Party has received the goods under the contract of carriage; and (b) proves or contains the contract of carriage.”⁶
In this case, the electronic bill of lading can be defined as “a bill of lading issued electronically, containing the minimum elements required for the validity of a paper bill of lading, signed with an electronic secure signature, stored, transferred and delivered to the rightful owner or his representative in electronic form, proving that the cargo has been received for carriage and will be transported under the contract of carriage and delivered at the destination”.⁷
⁵Emine Yazıcıoğlu, Reyagan Kender, Ergon A. Çetingil, Maritime Trade Law, Filiz Kitabevi, Istanbul, 2020, B.16, p. 365
⁶This convention, hereinafter referred to as the Rotterdam Rules, applies to the “International Carriage of Goods Wholly or Partly by Sea”.
(United Nations Convention on the Contracts for the International Carriage of Goods Wholly or Partly by Sea, New York 2008) 11 Aralık 2008 tarihinde Birleşmiş
It was discussed and adopted at the 63rd session of the General Assembly of the United Nations.
(G.A.Res.63/122,U.N.GAOR,63rdSess.,U.N.Doc. General Assembly Resolution A/
RES/63/122, Annex (Feb. 2, 2009))
⁷Hacı Kara, “Electronic Bill of Lading and Cyber Security in Maritime Trade”, TAAD, Yıl: 10, Sayı: 37 (January 2019), p. 82
There are currently multiple platforms for issuing and managing e-bills of lading. WAVE BL, CargoX, edoxOnline, essDOCS are some of them. Some of these e-bill of lading platforms are centralized and the process is centralized. essDOCS is one of them. Others (WAVE BL, Cargo X, edoxOnline) are decentralized networks where transactions are carried out on a distributed ledger network using blockchain technology.
⁸ indicates Characteristics of Electronic Bill of Lading Infrastructures. Muhammet Mustafa ARIMAN, Sercan EROL, “Seaway
The Concept of Electronic Bills of Lading in Transportation: Legislative Analysis for Turkey”, Dokuz Eylul University Maritime
Faculty Journal Volume:15 Issue:1 Year:2023, p. 116
5 Main Advantages of the E-Bill of Lading
1. Safer
There is no risk of document loss, forgery or fraud
Paper bills of lading are at risk of being lost, damaged or subject to forgery. As an official document, falsifying it can result in illegal shipments, misdeclared cargo, or shipments being given to unauthorized parties.9 Decentralized e-bill of lading applications solve all these problems by processing all transactions on a decentralized blockchain network. Data is encrypted, cannot be duplicated, and access is limited to only the authorized party at the right time. The risk of loss, damage, fraud or forgery is virtually zero. is reduced. A study by the McKinsey Global Institute found that e-bills of lading estimates that illicit trade could be reduced by 10 to 15 percent globally through its adoption.10 Importantly, the e-bill of lading now has the support of insurers. The International Group of P&I Clubs now recognizes e-bill of lading applications.11
2. Faster
Documents can be transferred in seconds instead of weeks
In order to complete the journey of the goods by sea, the bill of lading may be given to the courier up to 10 times to be delivered to the consignee, a process that may take several weeks. Any glitches with the courier or other problems with the documentation can cause delays that result in the goods not being received at the destination, resulting in lost time and additional costs such as demurrage charges. However, the e-bill of lading significantly reduces the time it takes for the shipment to be finalized. In addition, any issues that may arise with the documents can be resolved much more quickly, without the need to print and ship new paper documents.
3. Greener
Paperless Process, Reduced Carbon Footprint
Around 45 million bills of lading (and billions of pages) are issued by ocean carriers every year. The document has a global reach.
Switching from Paper to Electronic Bills of Lading
Streamlining international trade by digitalising end-to-end documentation
In addition to the carbon emissions associated with shipping, paper bills of lading are a completely environmentally unsustainable approach to trade documentation. As a fully digital solution, e-bill of lading is a cleaner, greener and more sustainable approach to trade documentation. A study by the McKinsey Global Institute estimates that if e-bills of lading reach 100% utilization levels, it would save 28,000 trees per year, the equivalent of a forest the size of approximately 39 football pitches.¹² Research by ESCAP (Economic and Social Commission for Asia and the Pacific) shows that fully digitizing trade-related regulatory procedures could save between 32 and 86 kg CO₂ for each end-to-end transaction.¹³
4. Simpler
Easy to Use Platform, Accessible from Any Device and Available 24/7
If the authorized party cannot physically access the paper Bill of Lading for any reason, the carriage cannot be finalized. But the e-bill of lading can be accessed anytime, anywhere, from any device, protecting against disruption and enabling faster processing. As a digital document, it offers a smarter, easier and instant solution, allowing people to collaborate across time zones without having to be in the office. As flexible working arrangements become more common around the world, having instant access to an e-bill of lading reduces potential delays and helps speed up processing time.
5. Low Cost:
Less Courier Fees, Less Workload and Zero Paperwork
DCSA research shows that the industry could save up to US$4 billion per year with just 50% adoption of e-bills of lading, and McKinsey’s paper -‘Billions of dollars in paper bottlenecks: Unlocking trade by digitizing documentation’14 suggests that dispensing with the physical transfer of bills of lading could save cargo interests US$6.5 billion a year in direct costs. According to the International Chamber of Commerce (ICC), paper-based processes place an extraordinary burden on SMEs, many of which are unable to secure the necessary financing. Digital documentation is the global
reduce the cost of trade and possibly reduce the $1.5 trillion annual global trade finance gap (the amount of trade finance requested but denied)
The multi-billion-dollar paper jam: Unlocking trade by digitalizing documentation
¹³(The Economic and Social Commission for Asia and the Pacific)
The multi-billion-dollar paper jam: Unlocking trade by digitalizing documentation
McKinsey’s analysis shows that e-bills of lading bring more than $15.5 billion in direct benefits to the transportation ecosystem and could unlock up to $40 billion in increased trade.¹⁵
Obstacles to the Transition to Electronic Bills of Lading
2023 TPM¹⁷ (Long Beach Annual Global Container Freight Conference) will discuss how startups and technology providers can make the widespread adoption of e-bills of lading a reality, focusing on integration, APIs (Application Programming Interface), automation and data quality, with an emphasis on 100% adoption of e-bills of lading by 2030.
seviyelerine ulaşması hedefi ortaya konuldu. İşbu başlıkta, bu hedefe ulaşmanın önündeki üç büyük engeli ve bunların nasıl aşılacağına dair bazı çözümleri inceleyeceğiz.
1. Joint Working and Standardization
The availability of different electronic bill of lading platforms such as Bolero, Seadocs, Wave, E-Title, Tradelens, etc. poses a challenge to the universal acceptance of these systems for companies engaged in international trade. In other words, each technology solution provider has its own e-bill of lading method. If such method differences are not addressed early, each
platforma özel e-konşimento ile karşılaşabileceğimiz anlamına gelecektir. Bu ise uzun vadede sürdürülemez bir durumdur. Zira WAVE BL, Bolero, CargoX, edoxOnline, essDOCS veya gelecekteki başka bir platformda düzenlenen bir e-konşimentonun, platformlardan herhangi biri tarafından kolayca yönetilmesi ve erişilmesi gerekir. Eğer e-konşimento tek bir platform tarafından düzenlenirse, işleme dahil olan her tarafın da aynı platformu kullanması gerekecektir ki bu da evrensel standardizasyonu sağlamış olacaktır.
¹⁵ See top footnote
¹⁶Muhammet Mustafa ARIMAN, Sercan EROL, “The Concept of Electronic Bill of Lading in Maritime Transportation: A Legislative Analysis in Terms of Turkey”, Dokuz Eylül University Maritime Faculty Journal Volume:15 Issue:1 Year:2023, p. 114
¹⁷The Annual Global Container Shipping Conference İn Long Beach
DCSA (Digital Container Shipping Association) proposed and advocated this standardization not only for e-bills of lading, but also as a foundation for the future of digital documentation in the container shipping industry. This standardization would also align with the UN/CEFACT (United Nations Centre for Trade Facilitation and Electronic Commerce)18 multimodal transport reference data model and provide a global industry framework that accelerates digitalization through a unified industry effort.
2. Support from All Parties
Since the bill of lading involves the shipper, carrier, consignee, consignee, customs, banks and insurers, all these parties need to understand the importance of the e-bill of lading and integrate the electronic application into the transportation relationship.
For example, if banks, which play an important role in financing container transportation, do not adopt e-bill of lading, there will be no point in their customers adopting it, or even if the shipper’s bank adopts e-bill of lading, they will have to use paper bills of lading if the consignee’s bank does not. However, many banks are already taking the initiative. For example, Société Générale is adopting new solutions with its Payment & Transaction Banking Business Accelerator and collaborating with WAVE BL and other fintechs for better digital payment solutions. Other banks, such as HSBC, have also started to show support in adopting e-bills of lading. In this respect, in the short term, banks that do not adopt e-bills of lading will be a barrier, but over time, banks that do not adopt e-bills of lading risk losing customers. A few large customers who are willing to switch to banks that offer electronic bills of lading support
will provide the incentive they need to accelerate transformation. The same is true for customs. Customs authorities in countries such as Singapore and the United Kingdom have taken the lead in adopting e-bills of lading. As such, the volume of trade is likely to increase
degree and the rate of digital documentation will be key factors in determining how quickly a country will adopt and accept e-bills of lading. In addition, initiatives such as The Future International Trade (FIT) Alliance will play a key role in assisting the adoption of e-bills of lading. FIT, a collaboration between DCSA, BIMCO, FIATA, the International Chamber of Commerce (ICC) and SWIFT, is a memorandum of understanding in which each organization commits to work together to standardize the digitization of international trade documents.
Global, cross-industry collaborations such as this will drive the adoption of e-bills of lading and
is essential to accelerate the future of digital documents.
3. Digitalization of All Transport Documents,
Achieving the goals of full e-bill of lading adoption by 2030 will require not only the digitization of the bill of lading, but also the digitization of other transport documents. In this respect, the e-bill of lading will be the first step in the digital documentation revolution. If a transportation still requires paper documentation, the applicability (and perhaps the adoption) of e-bills of lading will be limited. For example, some goods in transit require other documents in addition to the Bill of Lading, such as certificates of origin/authenticity or health certificates to ensure that the goods meet the regulations and standards of the importing country. While these apply to many types of goods, they are most common for reefer transportation. As long as such supporting documents are still paper-based, adopting e-bills of lading will be even more difficult. Indeed, while these shipments can benefit from the speed, efficiency and security of e-bills of lading, waiting for paper documents to be stamped and signed can have the same effect. would be able to eliminate the need for digitization. Consequently, in order to achieve full adoption by 2030, the focus needs to shift from just the bill of lading to the digitization of all commercial documents. The sooner we can adopt this electronic transformation paradigm, the sooner we can reap the benefits.
Electronic Bills of Lading under Turkish Law
Existence of a legally valid bill of lading i) a written document(promissory note) and this documentii) authorized and responsible personssigned (ratified)is possible.
i) in terms of the following;
TCC 1228 sets the minimum standards for the bill of lading to be legally valid as follows.
In this case, the absence of one or more of the elements listed in Art. 1229/1 TCC shall not affect the validity of the bill of lading:
1-) Proof that a contract of carriage has been concluded,
2) The goods have been received by the carrier or loaded on board the vessel and
3) It is obligatory to include terms that include the undertaking that the carrier is obliged to deliver the goods only upon its presentation.
In this case, TCO 14/2 will play an important role in the analysis of whether there will be a difference that will affect the legal validity between a physical document that meets the minimum requirements of the law and a document prepared in electronic environment that also meets these requirements. Accordingly, “…texts that can be sent and stored with a secure electronic signature also replace the written form.” Therefore, a document prepared in an electronic environment is legally valid just like a document prepared in a written environment.
ii) in terms of the following;
Pursuant to Article 14/1 of the TCO: “In contracts stipulated to be concluded in writing, the signatures of the persons under obligation are mandatory.” And according to Article 15/1 of the TCO: “A secure electronic signature shall have all the legal consequences of a handwritten signature.” In other words, a secure electronic signature that meets these conditions listed in the law has the same legal consequences as a handwritten signature. Therefore, a bill of lading prepared electronically under Turkish law shall be deemed legally valid.
Will the e-bill of lading qualify as a negotiable instrument?
Pursuant to TCC 1525/1, notices, warnings, objections and similar declarations, invoices, confirmation letters, participation undertakings, meeting calls and electronic submission and electronic custody agreements made pursuant to this provision may be issued, sent, objected to and shall be effective if accepted, provided that the parties expressly agree. According to Article 1526/1 of the TCC “Poliçe, bono, çek, makbuz senedi, varant ve kambiyo senetlerine benzeyen senetler güvenli elektronik imza ile düzenlenemez. Bu senetlere ilişkin kabul, aval ve ciro gibi senet üzerinde gerçekleştirilen işlemler güvenli elektronik imza ile yapılamaz”. Ancak konşimento bu hükme istisna olarak düzenlenmiş olup
aynı maddenin ikinci fıkrasındaki “the signature of the bill of lading and the bill of carriage by hand…or electronically
can also be thrown by any means”signed by any electronic means with the regulation
It is determined that the bill of lading shall have the characteristics of a negotiable instrument.
If an evaluation is made in terms of the element of foreignness;
International transportation activity involves an element of foreignness. This is because the continuation of 1526/2 states that “…
To the extent permitted by the laws of the country in which they are issued, the records to be included in these bills… may be written, created and sent by other electronic means.”
shall be valid to the extent permitted by the law of the country where the bill of lading is issued. Accordingly, if a bill of lading is not issued in Turkey, or in cases where a foreign law is to be applied pursuant to Article 29 of the BITL, the parties will be able to issue this document electronically to the extent that the foreign law allows e-bill of lading. It should be underlined that even if the above-mentioned article was not included in the law, the same conclusion would still be reached by analogy with Article 767 of the TCC. In conclusion, there is no obstacle to the issuance of an e-bill of lading under Turkish law. There is no e-bill of lading. However, many fundamental issues such as the content of the e-bill of lading, the minimum conditions for its validity, how the endorsement procedures of the bills of lading prepared in this way will be carried out, how the right can be asserted in case the bill is lost due to theft, failure of the system or server used in electronic communication, how the loss and cancellation procedures will be carried out, the number of copies, the presentation of the e-bill of lading, etc. must be regulated by a legal provision.
19 is self-evident.
many fundamental issues such as presentation of bills of lading, etc. must be regulated by a legal provision should¹⁹⁹ be obvious
¹⁹ Kara, a.g.m., p. 90
²⁰ This table shows the result of the Legislative Analysis. Muhammet Mustafa ARIMAN, Sercan EROL, “Seaway
The Concept of Electronic Bill of Lading in Transportation: Legislative Analysis for Turkey”, Dokuz Eylul University Maritime
Faculty Journal Volume:15 Issue:1 Year:2023, p. 120
