Adopting electronic bills of lading offers unprecedented advancements in efficiency, security and sustainability while cutting trade costs and promoting the green economy, a new ITC paper finds.
Electronic bills of lading (eBLs) are redefining the landscape of global trade, introducing a modern, digital approach that revolutionizes how transactions are conducted by boosting speed, improving security and promoting eco-friendly practices. A new International Trade Centre (ITC) report examines the evolution of eBLs and explains how policymakers and businesses can prepare for the digital transition.
A bill of lading is a legally binding transferable or negotiable document used in the shipping industry. It is issued by a carrier to a shipper and contains details on the type, quantity, origin and destination of the goods being transported, along with a description of those goods and shipping costs. The paper-based version accounts for 40% of containerized trade transactions and 10% to 30% of trade documentation costs, according to Expediting Trade Through Electronic Bills of Lading.
That means switching to digital eBLs presents major economic and environmental benefits.
‘If eBLs replaced all paper-based bills of lading, global traders would be able to save around $6.5 billion in direct transaction costs and have the capacity to facilitate $30 billion to $40 billion in global trade,’ said ITC Executive Director Pamela Coke-Hamilton. The transition also promises to transform trade by ‘streamlining processes, improving security, reducing environmental impact and promoting sustainable trade practices’.
The environmental benefits are equally impressive; each eBL prevents 27.9 kilograms of greenhouse gas emissions. Annually, this amounts to saving 440,820 metric tons of carbon dioxide and preserving forested areas equivalent to 39 football fields, the report says.
Many barriers stand in the way of universal eBL adoption
Despite their advantages, the widespread adoption of eBLs faces challenges. These include fragmented legal recognition, technical limitations and disparities in capacity – especially among small and medium-sized enterprises in developing countries. The absence of interoperability and standardization between private platforms also complicates adoption of eBLs.
Cybersecurity remains a key issue, while limited awareness hinders engagement across industry stakeholders. These hurdles highlight the need for coordinated global efforts to tackle barriers and step up adoption, the report says.
Two key approaches define eBL implementation. The statute-based approach, through the adoption of the United Nations Commission on International Trade Law’s Model Law on Electronic Transferable Records (MLETR), advocates principles of technological neutrality and functional equivalence. While 10 jurisdictions have aligned their laws with the MLETR, global adoption of the model law is uneven.
On the other hand, the contractual approach relies on agreements between parties using private platforms. While pragmatic as an interim solution, this method face challenges in achieving universal recognition.
Global collaboration is essential for paperless trade
The success of eBLs hinges on coordinated multilateral efforts addressing legal harmonization, technological interoperability and capacity building, the report says. Modernizing domestic laws to close gaps in e-signature validity and cybersecurity protocols is vital, as is investing in robust technical infrastructure to boost stakeholder trust. ITC recommends initiatives such as regulatory assessments, private–public consultations, policy advisory services and the exchange of best practices.
Achieving universal eBL adoption promises equitable benefits across nations, paving the way for operational efficiency, sustainability and transparency in global trade. Targeted support for developing countries through policy reforms, capacity building and infrastructure investments is critical to unlock the full potential of paperless trade.
