Carrier members of the Digital Container Shipping Association have committed to 100% implementation of electronic bills of lading by 2030, according to Thomas Bagge, chief executive officer of the DCSA.
The mission of the DCSA is to help its membership, which comprises nine of the 10 largest container shipping lines, to digitalize their operations, Bagge says. That’s extremely important because international trade is so complex these days, due to varying customs rules, trade financing and the vast differences among jurisdictions.
“What we call digital trade,” Bagge says, “is all about removing the barriers that we see today.”
Global trade has always been complex, of course, but the sheer quantity of related transactions has magnified the problem. In February, 2023, therefore, members decided to launch the initiative to implement electronic bills. However, things could be moving at a faster pace, Bagge admits. Last year ended with 3.8% of bills of lading being electronic. That was up from 2.1% the year before and 1.2% at the end of 2022.
“It’s moving in the right direction,” Bagge says. “However, it is a long game, and it is something that requires regulatory enablement. So we’re extremely pleased to see that the United Kingdom, as the first of the G-7 countries, actually implemented the legislation to allow for the electronic transfer of documents.”
As it happens, some DCSA members are moving more quickly to begin using e-bills than others. More than 10% of MSC’s bills are electronic, Bagge says. Clearly, the business case varies among carriers.
DCSA works with the World Trade Organization and several governments, including the U.S., to push legislation. “Regulatory enablement needs to take place,” Bagge says. “Interoperability is another major element of the initiative. So there’s a lot of technical and legal interoperability that we are working on at the moment.”
