Global Digital Documentation and Bills of Lading Market Size (2023 – 2030)

The Global Digital Documentation and Bills of Lading Market was valued at USD 799.50 Million and is projected to reach a market size of USD 3405.29 Million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 23%. 

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Industry Overview:

A bill of lading is a document issued by a contracting carrier to the shipper as a receipt for the goods described in it. It can be described as a contract of carriage between the shipper and the carrier including several other important data elements such as the name of the ship, freight information, load port/ discharge, date of issue, etc. Also, it includes terms and conditions which form part of the agreement for carriage when the bill of lading is transferred. If the carrier doesn’t deliver the goods described in the bill of lading, they can face a claim for loss of or damage to the goods.

A Bill of lading allows the rights to the cargo to be transferred from one party to another and is one of the key documents in international trade. An electronic bill of lading is the digital version of a paper bill of lading. The paperless bill solutions started appearing in the late 90s, aimed at eliminating problems with physical documents. Traditionally, the transfer of a paper bill of lading is handled by the physical transfer which can cause costly delays if not arrived on time to release the cargo.

Digital documentation and bills of lading require mainly two components i.e., a legal agreement or rulebook and a technology application or solution implementing the functions of a bill of lading. Digital documentation and bills of lading save time as they can be transferred at the speed of digital which helps cargo to be released on time without delay. It offers speed, accuracy, and integrity, and allows the instant authenticated transfer of original e-bill of lading documents to benefit users.

An electric bill of lading with its combination of a legal rulebook and technology can replicate the functions of a traditional paper bill of lading. Cloud-based e-bill solutions are available in the market for digital bill transfer. It eliminates the risks inherent in trading by paper and via courier at the click of a button. Decentralized electronic bill solutions based on peer-to-peer blockchain technology can provide incomparable privacy and security between the transacting parties. It eliminates the middleman and minimizes the risk of data being manipulated or exposed.

Today, global trade faces the need for digital transformation where the conversion to digital documentation and electronic bill of lading plays a vital role in providing greater efficiency. Lack of awareness and technical barriers can affect market growth. Vendors providing digital documentation and bills of lading need to partner with companies specialized in data connectivity for seamless adoption of their solutions.

Achieving the functional equivalence of an original paper of bill of lading is possible through the “club” system which is a closed party network based on contractual agreements. All parties involved in a transaction have to become members of the club by signing up to a single contract which is subject to an established legal system.

The club named International Group of Protection & Indemnity (IG P&I) provides marine liability cover for approximately 90% of the world’s ocean-going tonnage. As of now, solutions such as Bolero, Corda, essDOCs, WaveBL, CargoX, edocOnline, and TradeLens have been approved and can be used in the club. Globally, there are now three normal electronic bills of lading platforms and four blockchain electronic bills of lading platforms that have been officially approved by the International Group of P&I Clubs.

MARKET DRIVERS:

The digital documentation and bills of lading are superior to paper/courier mode in terms of speed, security, and costs which, in turn, fuel the market growth

Digital documentation and bills of lading solutions offer the well-known benefits of the paper process such as full independence of the parties involved while eliminating the downsides. Physical paper documents or bills can be lost, mislaid, damaged, destroyed, and forged. The receipt and contract functions of documentation and bill of lading are relatively easier to replicate in a digital world as these are essential in transmitting and recording data.

Digital documentation and bills of lading offer significant cost savings as there is no paying for courier fees or insurance. It also saves time by cutting transfer times from weeks to minutes. Electronic systems can provide better solutions than traditional paper to the critical integrity of such data elements provided the right implementation of security and access.

Digital documentation and bills of lading are stored and transferred via a peer-to-peer blockchain platform or in the secure cloud. They are digitally signed and encrypted which avoids the risk of forgery, manipulation, or stealing. All such aspects of digital documentation and bills of lading are contributing to its wide adoption and hence, driving the market growth.

Digital documentation and bills of lading protect business continuity and improve the operational efficiency of global trade, which is driving the growth of the market

Paper documentation and bill of lading can be damaged or destroyed easily by a courier service which can spell disaster for a business. Organizing a replacement of a paper bill of lading is a difficult process to be issued on short notice, it can lead to serious delays and disruptions to a business. Digital documentation and bills of lading are always accessible and arrive with entities minutes after being transferred. They can be stored in digital format either in a blockchain or cloud network, allowing trade to flow seamlessly. Digital documentation and billing provide high operational efficiency since it reduces manual processing and comes hand-in-hand with process automation.  Adoption of new approaches and digital technologies has become crucial to cut down costs and improve business efficiency.

MARKET RESTRAINTS:

The Lack of supportive legislation can be a significant barrier to the widespread adoption of electronic bills of lading

Electronic bills have been used for decades, but the legislative framework existing worldwide supports the use of paper documents only. Some countries accept the electronic bill of lading, but usually, it is rather an exceptional case. Thus, only a small fraction of cargos worldwide are carried under digital bills of lading.

The Hague-Visby Rules were revised and updated in 1979 which is a mandatory framework including rights and obligations governing the carriage of goods by sea. This document does not provide clear instructions related to the usage of electronic documents or billing on whether they have the same legal power as a paper one. This creates some legal uncertainties and barriers around the adoption of digital documentation and bills of lading.

There were some initiatives to bridge the gap and push the adoption of digital bills of lading such as The Rotterdam Rules 2008, the Electronic Bills of Lading Clause for charter parties released by BIMCO (2014), and the Modern Law on Electronic Transferable Records (MLETR) formulated by UNCITRAL in 2017. The number of countries implementing changes to their legislation related to electronic bills of lading is small but constantly growing in response to such initiatives.

Singapore and Bahrain have supportive legislation amendments and facilitation of electronic bills of lading. The legal status of digital documentation and bills of lading remains unclear in the laws of most countries worldwide, which can majorly impact its adoption and hence, affect the market growth.

The lack of common standards and interoperability challenges can restrain the digital documentation and bills of lading market growth

The lack of common standards and interoperability issues can slow down the adoption of digital documentation and bills of lading. Since electronic bills of lading lack common standards, providers of such solutions use data standards, technologies, and approaches convenient for their use. It creates an ecosystem incapable of communicating with each other and makes it difficult to integrate multiple systems.

In an attempt to unify communication between parties involved in a transaction, the Digital Container Shipping Association (DCSA), a consortium of the largest carriers, has published standards aimed at facilitating the adoption of electronic bills of lading by regulators, insurers, and banks. This document may provide a significant step forward to help the providers of electronic bills of lading and other industry stakeholders. It is still not clear how the initiative is received by the industry.

DIGITAL DOCUMENTATION AND BILLS OF LADING MARKET REPORT COVERAGE:

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Segmentation Analysis

Digital Documentation and Bills of Lading Market – By Type:

• House Bill of Lading

• Master Bill of Lading

Based on Type, the Digital Documentation and Bills of Lading Market are segmented into the House Bill of lading and Master Bill of Lading. A House Bill Of Lading is a Bill Of Lading that functions between the actual buyer and actual seller of the goods. They are commonly issued by a freight forwarder or NVOCC for their clients (the buyer/seller of the goods) but the actual shipper and actual consignee will be listed on the House Bill Of Lading. The Notify on the House Bill Of Lading could be the same as the Consignee, but it could be any other party as dictated on the Letter of Credit.

A Master Bill Of Lading is issued by the carrier or shipping line and details the shipper as the NVOCC, their agent, or the Freight Forwarder involved in the local and foreign country. A House Bill Of Lading and a Master Bill Of Lading are similar in their purpose or function. Both are a type of Bill Of Lading that is responsible for serving as a receipt, contract of carriage, and title for the goods being shipped. The difference between the two lies in the parties the Bill is intended for.

Digital Documentation and Bills of Lading Market – By Carrier Responsibility:

• Straight bill of lading

• Original bill of lading

• Switch bill of lading

• Shipper's Order bill of lading

• Others

Based on Carrier Responsibility, the Digital Documentation and Bills of Lading Market is segmented into Straight bill of lading, Original bill of lading, Switch bill of lading, Shipper's Order bill of lading, and Others. Bill of Lading can be classified into Negotiable and Non-negotiable. In a Negotiable bill of lading, the title or ownership of the shipment can be transferred from one party to another while in a Non-negotiable bill of lading the ownership of the shipment is fixed to the consignee of the goods.

A straight Bill Of Lading is a non-negotiable document when goods are paid for in full and are shipped directly to the listed consignee. Original Bill Of Ladings is used in controlling ownership of the goods when the consignee hasn’t paid for the cargo in full. When the buyer pays full to the seller and presents all original documents, the cargo can be released to the consignee.

A Switch bill of lading is most often used in foreign-to-foreign shipments and helps in privacy control as there will be two sets of bills that are exchanged or switched to protect the supplier and consignee’s information from each other. A Shipper’s Order bill of lading is used if a bill of lading is purchased on credit and handled through a bank. A Shipper’s Order bill of lading is a negotiable document and serves as a title of the goods being shipped.

Digital Documentation and Bills of Lading Market – By Transportation:

• Inland bill of lading

• Ocean bill of lading

• Through bill of lading

• Multimodal bill of lading

Based on Transportation, the Digital Documentation and Bills of Lading Market is segmented into the Inland bill of lading, the Ocean bill of lading, the Through bill of lading, and the Multimodal bill of lading. Inland Bill of Lading is used for domestic shipments. Ocean Bill of Lading, also known as a port-to-port bill of lading, is used for overseas shipments which require the carrier to only transport the load from one port/location to another.

Through bill of lading is similar to the multimodal bill of lading in means of cargo ownership transfer among different shippers but it only includes one mode of transportation. The carrier transports the items to multiple locations utilizing one or more means of transportation. For instance, the cargo can transfer via ocean and then through inland waterways.

Multimodal or Combined bill of lading covers more than one mode of transportation for goods being shipped such as ocean, air, rail, or truck. For instance, the cargo may cover a part of its journey through ship vessels and then reach its final destination via trucks. In this type, the carrier is responsible for the goods from the place of receipt to the place of delivery. The carrier can, however, sub-contract the shipment of the goods via more than one mode of transportation.

Digital Documentation and Bills of Lading Market - By Region:

• North America

• Europe

• Asia-Pacific

• Latin America, the Middle East, and Africa

Geographically, the North America Digital Documentation and Bills of Lading Market is anticipated to expand significantly during the forecast period. This is mainly attributed to the U.S. being a conventionally global leader in international trade. The USA has some legislation that shows support for the use of digital documentation and bills of lading.

The Asia-Pacific (APAC) region is anticipated to register significant growth during the forecast period, owing to the increasing manufacturing bases and special economic zones in the region. China, India, and Australia are some markets anticipated to propel the growth of the market in the APAC region.

In February 2021, The Singapore parliament passed the Electronic Transactions (Amendment) Bill which adopts the UNICTRAL Model Law on Electronic Transferable Records with certain modifications. Amongst other things, the Bill also enables the creation and usage of an electronic bill of lading that is legally equivalent to a paper bill of lading.

Major Key Players in the Market

1. Bolero
2. Corda
3. essDOCs
4. WaveBL
5. CargoX
6. edocOnline
7. TradeLens
8. Youredi
9. MSC Mediterranean Shipping Company 

Notable happenings in the Global Digital Documentation and Bills of Lading Market in the recent past:

• Collaboration- In March 2022, Bolero International, the leading provider of cloud-based trade finance digitization solutions, announced its collaboration with TradeLens, the blockchain-based global trade platform for containerized goods to deliver an enhanced digital experience to customers using electronic bills of lading in trade finance transactions. 
• Product Launch- In April 2021, MSC Mediterranean Shipping Company, a global leader in container shipping and logistics, officially introduced the electronic bill of lading for its customers around the world, following a successful pilot phase. The eBL allows shippers and key supply chain stakeholders to receive and transmit the bill of lading document electronically, without any disruption in day-to-day business operations.
• Expansion- In April 2021, essDOCS enabled the first integrated paperless Letter of Credit and eDocs transaction in the steel industry in the first use of CargoDocs in India.
• Partnership- In July 2020, essDOCS, the leading enabler of paperless trade, announced a partnership with Portall Infosystems, the digital transformation leader in the Indian logistics arena, to extend the use of CargoDocs electronic bills of lading in India.
• Partnership-In October 2020, Contour, the Singapore-based global trade finance network, announced its partnership with CargoX, a blockchain platform for transferring documents and data including a certified electronic bill of lading solution. Contour is transitioning to full production, with the network to support electronic bills of lading as part of the digital transformation of trade.
• Acquisition- In October 2020, R3 announced an agreement with the E-Title Authority, a Singapore-based software developer, to acquire its technological and legal framework for the digitalization of the Bill of Lading.

COVID-19 impact on Digital Documentation and Bills of Lading Market:

The COVID-19 outbreak has rapidly accelerated the adoption of digital documentation and bills of lading making it a widely accepted option in the shipping industry. Lockdowns minimized in-person interactions and prevented the processing and transportation of documents. The covid-19 pandemic has proven that physical and financial supply chains that are built on paper can break.

The pandemic has forced the office staff of almost every carrier to work from home and faced huge difficulties in obtaining and presenting paper bills. The Covid-19 crisis has brought up the core strengths of standardized e-billing to the fore. The airfreight capacity was slashed globally after the widespread cancellation of passenger flights, the remaining space was taken up largely by urgent medical shipments, and carriers were unable to send paper bills around the world where consignees and forwarders require to present them to ports and customs authorities before releasing cargo.

Countless containers were stuck at various ports, depots, terminals, and warehouses across the world as the receiver did not have the original paper bill required to release goods at their destination. The COVID-19 pandemic has forced almost all sectors to adopt digital and technological solutions and highlighted the practical limitations of paper bills of lading with underlying issues such as delays in the arrival of paper bills of lading and difficulty in presenting them owing to quarantine restrictions.

The ongoing pandemic has accelerated the need for digital transformation in businesses to increase their efficiency and worked as the catalyst for the adoption of electronic bills of lading and other collaborative approaches. The COVID-19 pandemic has shown up the importance and fragility of global supply chains and how disruptions have costly impacts on interconnected global economies. This has propelled the demand for a wide range of digital solutions, including the use of digital documentation and electronic bills of lading.

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