COSCO Shipping Bulk and Global Shipping Business Network Revolutionize Bulk Cargo Trade with Blockchain-based eBL August 8, 2023 August 8, 2023 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsAugust 8, 2023 by Kelly Cromley

COSCO Shipping Bulk and Global Shipping Business Network Revolutionize Bulk Cargo Trade with Blockchain-based eBL

COSCO Shipping Bulk, a prominent player in the shipping industry, has unveiled a groundbreaking development in collaboration with a valued customer—a successful issuance of the inaugural electronic bill of lading (eBL) for bulk cargo via the innovative Global Shipping Business Network (GSBN) in Hainan Province. This innovative system leverages the power of blockchain technology to streamline and expedite the secure cross-border trade of bulk cargo, representing a remarkable advancement in trade efficiency and sustainability.

The milestone transaction marked the debut of the IQAX eBL system for dry bulk transportation, showcasing its potential to revolutionize the intricate landscape of global trade. At the core of this accomplishment lies the eBL, a pivotal document that encapsulates a seamless journey of 75,000 tons of coal, transported by the esteemed Panamax carrier Jin Xia Feng, owned by COSCO Shipping Bulk. The coal-laden voyage embarked from Australia’s Port of Newcastle, en route to China—an endeavor laden with significance for both entities.

COSCO Shipping Bulk’s issuance of the eBL marked the initiation of a meticulously orchestrated digital ballet, where multiple stakeholders performed their roles in harmonious coordination. The intricate choreography involved the electronic transfer and verification of the eBL by an array of esteemed partners intricately woven into the business chain. Notable participants included Yancoal Australia, Shandong Energy (Hainan) Intelligent International Technology, Xiamen ITG Energy, Dalian Hexin Zhongli Energy, and branches of the Bank of China situated in Sydney, Hainan, and Hong Kong. Additionally, the Hainan New International Trade Service Platform played a pivotal role in this transformative dance of digitalization.

One of the most significant revelations arising from this collaborative endeavor is the profound metamorphosis it catalyzes in the trade landscape. By seamlessly connecting miners, traders, end users, and financial institutions, the eBL initiative introduces an era of heightened efficiency and synergy in cross-border bulk cargo transportation. Notably, the adoption of eBLs heralds a reduction in legal and commercial risks that historically accompanied the use of conventional letters of guarantee. Moreover, the newfound efficiency in document processing has not only accelerated delivery timelines but has also contributed to tangible reductions in carbon emissions. The endeavor aligns harmoniously with eco-friendly trade practices by substantially curtailing the consumption of paper resources, thus furthering the industry’s commitment to sustainable operations.

Furthermore, the innovative digital ecosystem of Hainan Province, marked by its profound emphasis on authenticity verification, has triggered a ripple effect of cost savings. Banks, pivotal actors in the trade finance realm, have witnessed a substantial reduction in risk control expenses pertaining to the validation of bill of lading authenticity. This, in turn, amplifies the scope of trade finance while simultaneously furnishing valuable data support to small and medium-sized enterprises (SMEs), empowering them to secure essential financing and credit for their developmental aspirations.

The underlying catalyst for this transformative evolution harkens back to 2018, when COSCO Shipping pioneered the Global Shipping Business Network (GSBN). At its core, GSBN serves as a dynamic catalyst poised to redefine the very essence of the shipping industry by harnessing the potential of blockchain technology. This visionary initiative has culminated in the development of an array of blockchain-powered products, each intricately designed to optimize processes, foster unwavering trust, enhance trade efficiency, and promote seamless collaboration within the intricate tapestry of supply chain dynamics.

By forging a strategic partnership with the Bank of China, COSCO Shipping took a significant step forward in late 2020, unveiling the world’s first blockchain-based eBL on the GSBN platform. This landmark achievement stands testament to COSCO Shipping’s commitment to innovation and its unwavering dedication to redefining the contours of industry norms.

As an ardent proponent of the “25 by 25 Pledge” initiated by BIMCO, COSCO Shipping Bulk has assumed a pioneering role in advancing the global dry bulk cargo transportation sector toward its ambitious goal of achieving a 25% eBL utilization ratio by the year 2025. This concerted endeavor stands as a resounding testament to COSCO Shipping’s commitment to championing the cause of digitalization within the bulk cargo trade domain. Ultimately, this strategic commitment dovetails harmoniously with COSCO Shipping’s overarching aspiration—to deliver an enhanced spectrum of efficient, high-quality services to its valued clientele.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.