News
The FIT Alliance has initiated an electronic bill of lading (eB/L) declaration to enhance the efficiency, reliability, sustainability and security of global trade through the use of eB/Ls. The objective of this declaration is to get a collective commitment from all parties involved in international commerce to spearhead digital transformation, beginning with the implementation of eB/Ls.
Formed in February 2022, the FIT Alliance is an initiative to promote digitalization, consisting of BIMCO, the Digital Container Shipping Association (DCSA), the International Federation of Freight Forwarders Associations (FIATA), the International Chamber of Commerce (ICC) and the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
As for efforts to introduce eB/Ls, BIMCO has launched a 25-by-25 pledge, a commitment by some of the world’s biggest shippers in the bulk sector to target moving 25% of their annual seaborne trade volume for at least one commodity using eB/Ls by 2025. It has been joined by major shipping companies and shippers. The DCSA has made a commitment to a 100% adoption of eB/Ls by 2030. As for the FIATA, 26 member freight forwarders associations have adopted the electronic FIATA bill of lading (eFB/L) and begun distributing it.
As the majority of technical and legal hurdles for the universal adoption of eB/Ls are already being tackled, the next critical move is a firm commitment to digital transformation from all entities engaged in international trade, according to the FIT Alliance. Signatories are required to make a commitment, adopt the FIT Alliance’s eB/L processes and data standards, encourage partners to follow suit and give support to have eB/L standards developed and introduced to fully introduce a standardized eB/L.
Annually, maritime carriers generate approximately 45 million B/Ls. Embracing eB/Ls will offer the trading sector advantages, such as expedited transactions, cost-efficiency (including reduced overheads for cargo storage and paperwork) and diminished risks of fraud. In 2022, however, a mere 2.1% of B/Ls and waybills in container trade were digital. A study by McKinsey suggests that achieving a full adoption of eB/Ls in just the container sector could potentially unlock $30-40 billion in worldwide trade growth by alleviating trade friction. It could also contribute to the conservation of approximately 28,000 trees annually, equivalent to nearly 39 football pitches of forest, and substantially cut down carbon emissions by eliminating paper usage.
The number of signatories has reached some 40, according to the FIT Alliance’ website. They include Bolero, Cargo X, Wave and other eB/L system providers; the British International Freight Association (BIFA), the Canadian International Freight Forwarders Association (CIFFA) and other logistics organizations, financial institutes, container shipping companies and so on. From Japan, TradeWaltz is a signatory.
