The world of shipping involves several commercial, documentary, operational and financial processes..
While there have been many developments in the industry, a lot of the documentary processes in shipping and freight has stayed much the same for many decades..
Delays in document transmissions which could take anywhere between 5-10 days with the added risk of loss or delay of documents have severe consequences such as demurrage, detention and/or port storage, possible loss or cargo damage due to non-clearance and abandoned cargo..
CarogX Platform, a neutral, public blockchain-based platform is offering to provide a solution which will help to digitalize the trade documentation process using BDT (Blockchain Document Transfer) and reduce document transmission time to 20 seconds..!!
I took the platform for a test drive to see how it works and if it can assist the industry in saving costs and making the process of document transfer simpler, easier, economical and more importantly, secure and safer..
If you are in the business of international trade you would have no doubt heard about a Certificate of Origin.. But not everyone is familiar with what is a certificate of origin, why it is required, who issues it etc.. This article aims to clarify these points..
A Trade agreement is a contractual arrangement between countries concerning their trade relationships and how they conduct trade with each other..
Customs department in the importing country may require a “proof of origin” in order to determine whether or not the cargo that is imported may be subjected to trade measures such as the preferential duty tariff (for stuff that is imported from with the PTA bloc), free trade deals, prohibited goods etc..
Many things have changed in the last 30 years in shipping and freight..
Many positive new developments have taken place with things from the vintage days of shipping either obsolete to almost obsolete now..
If you look at many of the news items about the industry recently, there has been a certain buzz and intensity around the electronic bill of lading..
I am fairly confident that people entering the shipping and freight industry in the next decade will be told that 2020 was the year that saw the beginning of the end for the paper “Bill of Lading” and the year in which the switch to “Electronic Bill of Lading” (eBL) began in earnest..
Last year, I asked a question “Electronic bill of lading – are you and your country ready for it..??”..
This question could not be more relevant TODAY, considering the current circumstances, and the impact COVID-19 on the shipping and freight industry..
An electronic paperless bill of lading is a bill of lading issued electronically instead of being printed on paper and issued physically to the customer as a hard copy..
Whether using an electronic paperless bill of lading issued on the back of a Blockchain based platform or a Bolero based platform, these electronic bill of lading options are said to fulfill the functions in the same manner as a traditional paper bill of lading..
Many believe that the electronic bill of lading will be a game changer in the shipping industry with faster, efficient transactions, reduction in costs with greater security and less risk..
However, there were concerns on the issue of safety, security and acceptability relating to the transmission and receipt of electronic paperless bill of lading and in several cases it was required to check whether the carrier and country were ready for electronic paperless bill of lading..
Currently, we are in a unique moment in history where as per reports, COVID-19 has affected all countries around the world.. And this my friends is a time when almost all shipping lines and customers would be wishing that they had access to Electronic Paperless Bills of Lading..
The International Chamber of Commerce (ICC) has launched some digital initiatives aimed at creating a collaborative cross-industry effort to enable the standardisation of digital trade..
The first one called The ICC Digital Trade Standards Initiative (DSI), will build on work done by various like minded initiatives, many of which aim to digitise trade, notably through the development of open trade and technology standards to promote interoperability.
In the other initiative, the ICC is partnering with various government, business and other stakeholders to create digital solutions that will advance economic prosperity for all.
In line with its Declaration for the Next Century of Global Business, the ICC is committed to maximising the benefits of the digital economy through establishing key partnerships to unify, simplify, and transform trade processes for all.
CargoX, the provider of the CargoX blockchain document transfer (BDT) platform, announced that they been granted prestigious approval by the International Group of P&I Clubs.
The release says that CargoX It has become the first and only approved provider to use the neutral, public blockchain Ethereum network for its platform.
The International Group of P&I Clubs (the IG) is an unincorporated association of the 13 principal underwriting Protection & Indemnity (P&I) Associations (Clubs) and their Affiliated Associations and Reinsured Entity.
Between them, they provide liability cover (protection and indemnity) for approximately 90% of the world’s ocean-going tonnage. Of the world’s top 25 reinsurers, 22 were featured on the group’s program in 2019.
The TradeLens Agreement which “authorizes the parties to cooperate with respect to the provision of data to a blockchain-enabled, global trade digitized solution that will enable shippers, authorities and other stakeholders to exchange information on supply chain events and documents” is seemingly cleared to go live as it goes unchallenged within the timeframe given by FMC..
TradeLens is a digital alliance among container shipping lines started by the teaming up of Maersk and IBM to offer customers digital freight solutions..
Touted as an open and neutral industry platform underpinned by Blockchain technology, Tradelens is now supported by major industry players such as Maersk, Zim Lines, PIL, CMA CGM, MSC, Hapag Lloyd and ONE..
This platform received a major boost on the 23rd of December 2019 when The Federal Maritime Commission (FMC) published “The TradeLens Agreement”..