Thursday, February 9, 2023
HomeDigital Trade DocumentationProof of Interoperability sparks sign ups for trade documentation transfer - CargoX

Proof of Interoperability sparks sign ups for trade documentation transfer – CargoX

CargoX, one of the few electronic trade documentation transfer platforms approved by the IG P&I Clubs for electronic bills of lading is reportedly seeing a massive spike in the number of users of the CargoX platform.

As per CargoX, the start of the spike follows the news that interoperability between two Electronic Bill of Lading (eB/L) platforms became a reality on the 25th of October 2022 when CargoX and edoxOnline were able to complete an end-to-end digital transfer process in 6 minutes between the two competing eB/L-solutions.

What is an electronic bill of lading..??

An electronic bill of lading is a digital version of a traditional paper bill of lading, a document used in shipping goods by sea. An eB/L typically contains the same information as a paper bill of lading, including details about the shipper, the consignee, and the goods being transported, and also reflects the terms and conditions of the contract of carriage.

The main difference between an eB/L and a paper bill of lading is that the former is created and stored electronically, using computer systems and networks, rather than printed on paper. That leads to faster, more secure, and cost-efficient shipping and trade document transactions.

To support various digital maturity levels and jurisdictions, eBL on CargoX can at any time be converted to a paper BL.

McKinsey and Company’s study on trade digitalization, concluded that using an eB/L could save $6.5 billion in direct costs while allowing $40 billion in global trade by streamlining trade documentation, a paper-intensive and resource-consuming process.

Spike in sign-ups to the CargoX platform

CargoX reports that its platform has processed 3,478,124 electronic trade documents. Over 99% of those documents were shipping documents, showing the need for progress of both eB/L and blockchain trade documents between parties using different eB/L platforms, unleashing powerful velocity and efficiency for global trade and the entire shipping industry.

The number of companies using CargoX’s blockchain technology for document transfer has grown exponentially since 2018, with January 2023 numbers indicating 100,148 registered companies with 124,848 users.

Announcing the growth, Stefan Kukman, founder and CEO of CargoX said, “We are proud to lead this eB/L initiative of a distributed global eB/L solution built using standards published by DCSA. Distributed global computing solutions have emerged as an alternative to centralized systems.

Logically, eB/L platforms provide interoperability to avoid centralization and market manipulation. We support standards-driven interoperability, and we firmly believe this is good for all economic operators and governmental entities participating in global trade,” added Kukman.

Data Standards

DCSA (Digital Container Shipping Association) is a nonprofit, independent organization established in 2019 by several of the largest container shipping companies. DCSA’s mission is to be the de facto standards body for the industry, setting the technological foundation for interoperable IT solutions.

Together with member carriers, DCSA creates vendor-neutral, technology-agnostic standards for IT and non-competitive business practices. DCSA collaborated with CargoX to test standards that comply with industry best practices.

Using CargoX’s easy-to-use and reliable document transfer platform, customers can upload shipping, trade, or finance documents with military-grade encryption and perform a highly secure, instant, and indisputable ownership transaction. The solution supports more than 65 types of documents.

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