POSCO International is transitioning from paper bills of lading to digital formats, aiming to streamline trade operations. The time required for bill of lading distribution will be reduced from the current 5-10 days to just a few hours, while also digitizing logistics and finance to enhance the utilization of trade data. This initiative marks a significant shift from reliance on paper documents to a fully integrated data flow in trade operations.
On August 25, POSCO International announced the launch of an e-B/L consortium during a signing ceremony at the POSCO Center in Seoul, in collaboration with POSCO Flow, global shipping company ZIM, Hana Bank, Korea Trade Network (KTNET), and Taewong Logistics.
A bill of lading (B/L) is a crucial trade document that proves ownership of cargo and serves as a basis for payment. Currently, the exchange of paper originals among exporters, importers, shipping companies, and banks typically takes 5-10 days, incurring international express shipping costs and risks of delays, loss, and tampering.
The electronic bill of lading (e-B/L) replaces traditional paper documents with digital versions, allowing for online processing from issuance to transaction and distribution, thereby reducing time and costs associated with document movement.
Earlier in July, POSCO International applied ZIM's e-B/L platform, WaveBL, in a transaction exporting automotive parts from Busan to Charleston, USA. The results confirmed that the use of e-B/L reduced the time and costs of document delivery while minimizing the risks of loss and tampering.
This consortium aims to expand such successful implementations across all trade operations. POSCO International will lead the promotion of e-B/L and the digitalization of trade finance. ZIM will handle e-B/L issuance and platform integration, while KTNET will manage the electronic trade platform and trade finance system integration.
Hana Bank will support trade finance processes and financial services. POSCO Flow will facilitate discussions between shipping companies and cargo owners, and Taewong Logistics will assist with logistics operations and e-B/L issuance.
POSCO International anticipates that the widespread adoption of e-B/L will shorten the distribution period for trade documents to within hours. They expect to reduce international express shipping and document processing costs by up to 80%, along with a decrease in carbon emissions due to reduced paper usage and international shipping.
Looking ahead, POSCO International plans to gradually implement e-B/L in export and import operations. They will also establish an electronic negotiation (e-Nego) system to digitize trade finance procedures, including the purchase of export letters of credit. This initiative aims to enhance the connection and utilization of data generated throughout the trade process, from document preparation to logistics, finance, and payment collection.
Jeong Gyeong-jin, head of POSCO International, stated, "This consortium will set a new standard for the Korean e-B/L ecosystem by combining decades of trade expertise with the country's top electronic trade and finance partners. We aim to accelerate the digital transformation of the entire trade process and contribute to enhancing national logistics competitiveness."
* This article has been translated by AI.
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