The shipping industry has long been weighed down—sometimes literally—by mountains of paperwork including the all-important transport document called the Bill of Lading..
According to The FIT Alliance’s 2024 electronic Bills of Lading (eBL) survey, eBL adoption has seen steady growth since 2022..
The share of users opting for both paper and electronic bills of lading, overall adoption rate of eBL, customers who plan to switch to eBL, customers transitioning to eBL in 2 years and customers who believe eBL will accelerate digital transformation have all gone up substantially in 2024 compared to 2022..
Electronic Bills of Lading
An electronic bill of lading (eBL) serves the same legal functions as its paper counterpart but in a digital format—and the benefits are undeniable:
- Speed – No more waiting for couriered documents; transfers are instant
- Security – Protected against fraud and forgery
- Efficiency – Reduces administrative burdens, errors, and costs
eBLs are issued by the carriers using various eBL service providers approved by The International Group of P&I Clubs (IGP&I)..
Until recently, a major barrier to widespread adoption was the lack of legal recognition in many jurisdictions.. But that’s changing..
Legal recognition and the role of IGP&I
In September 2023, the UK’s Electronic Trade Documents Act came into force, giving digital trade documents—including eB/Ls—the same legal standing as paper ones.. This aligns with UNCITRAL’s Model Law on Electronic Transferable Records (MLETR), which has been paving the way for global digital trade since 2018..
Recognizing this shift, the International Group of P&I Clubs (IGP&I)—which provides liability cover for about 90% of the world’s ocean-going tonnage—has been at the forefront of approving eB/L systems..
Since 2010, they have approved twelve electronic trading platforms.. Now, with the legal landscape evolving, IGP&I is introducing a new approval process, making it easier for compliant eB/L systems to gain recognition..
In a notification to its members, the IGP&I stated
1. The Group is pleased to announce that from 20th February 2025, paperless trading systems will be ‘deemed approved’, if they comply with certain requirements. The requirements for ‘deemed approval’ are:
i), the system permits ‘compliant’ electronic bills of lading (‘E-bills’) only, meaning E-bills which are subject to a governing law which gives legal recognition to them as equivalent to paper bills of lading; and
ii) the system is reliable and is evidenced as such.
The new ‘deemed approval’ process
From February 20, 2025, eB/L systems meeting specific criteria will be automatically approved (or “deemed approved”) without requiring a lengthy review process.. To qualify, a system must:
- Ensure legal recognition – The eB/L must be subject to a jurisdiction that grants it the same legal status as a paper bill..
- Prove reliability – The system must meet high standards of security, authenticity, and operational efficiency..
IGP&I has published detailed guidelines for trading system providers, outlining what they need to do to meet these criteria..
What’s next for electronic trade..??
This shift is a game-changer.. As more jurisdictions enact laws recognise eB/Ls, and as industry-wide standards gain traction, we are heading toward a future where trade is faster, safer, and truly digital..
But adoption depends on collaboration—between governments, shipping lines, freight forwarders, and technology providers.. The momentum is there, and now it’s about execution..
Grant Hunter of BIMCO commented on his LinkedIn “Thank you IGP&I for this initiative to help streamline the approval process and make it more transparent – it’s a development much welcomed by BIMCO“..
BIMCO announced in 2024 that their “25 by 25” campaign already surpassed its initial target within its first year with four of the initial participating shippers, BHP, Rio Tinto, Vale, and Anglo-American achieving an average eBL adoption rate of 25.1% in their iron ore trade..
This is a significant milestone and victory for the efforts of trade digitalisation and the ongoing efforts to streamline supply chain processes and accelerate the digital transformation of trade in the bulk sector..
This new approval process for electronic bill of lading systems by the IGP&I will make it easier for customers to adopt eBLs..
