The shipping industry is on the cusp of a significant transformation, thanks to the strides made in digital trade documentation. Electronic trade documents like bills of lading are making good headway in the world of shipping, especially with the setting up of data standards for the same.
ICE Digital Trade, a subsidiary of Intercontinental Exchange, Inc., recently made headlines with its ICE CargoDocs Local Law eB/L solution, receiving the nod of approval from the International Group of P&I Clubs.
The approval is a game-changer, allowing ICE Digital Trade to support eB/Ls under the legislation of any country that has adopted the MLETR or equivalent laws. This leap forward eliminates the need for all parties to sign the multilateral DSUA, removing a significant barrier to entry for many stakeholders in the shipping industry.
What does this really mean..??
Electronic Bills of Lading require legal recognition in a country through the adoption of MLETR (Model Law on Electronic Transferable Records) or local equivalent. The process of countries adopting MLETR has been slow and thus far only 8 countries have adopted this with the UK being the latest country.
The ICE CargoDocs Solution by ICE Digital Trade (formerly essDOCS) is a system that allows the creation and exchange of electronic shipping documents with legal validity established through a widely recognized agreement called the Databridge Services & Users Agreement (DSUA).
The DSUA is a multilateral agreement through which all users of ICE CargoDocs Document Exchange agree to recognize electronic documents as legally equivalent to traditional paper-based documents.
To enable quicker and easier adoption of electronic bills of lading, ICE Digital Trade has created the ICE CargoDocs Local Law eB/L solution which allows participants to use the solution to support eB/Ls without the need to have signed the multilateral DSUA.
This approval by the IG P&I Clubs which represents 12 Protection and Indemnity (P&I) Clubs that insure 90% of the world’s ocean-going tonnage means that ICE Digital Trade can now self-certify its compliance with any newly enacted local laws.
This provides a quick adaptation to the dynamic landscape of trade digitization as it grants immediate access to the benefits of eB/Ls in order to streamline operations and reduce delays.
“The approval of our ICE CargoDocs Local Law eB/L solution by the IG P&I marks a significant milestone for us, as we proudly launch the industry’s first truly scalable MLETR-enabled eB/L solution,” said David Farrell, Chief Operating Officer at ICE Futures U.S.
“Our solution now facilitates the use of eB/Ls governed by legislation such as the UK’s ETDA, whilst crucially enabling the immediate extension of ICE CargoDocs to support local law eB/Ls governed by any new legislation recognizing eB/Ls in the future, underscoring our leadership position in embracing the rapidly evolving legal landscape.”
This latest approval signifies the industry’s readiness to shift gears to a fully digital global trade ecosystem, which promises not just speed but also enhanced security and compliance.
