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Day: 12 December 2024

Electronic Bill of Lading Declaration for Container Shipping

Posted on by Keith McKinley

On 16 November, the leaders and trade ministers of the Asia Pacific Economic Cooperation (APEC), covering more than 60% of global trade, concluded their summit by issuing declarations which include a strong commitment to promoting the use of electronic trade-related documents, and the electronic Bill of Lading (eBL) in particular.

Research has shown that switching away from the transfer of physical, paper-based Bills of Ladings could save stakeholders around $6.5 billion in direct costs, enable $30-40 billion in annual global trade growth, transform the customer experience, and improve sustainability. The ‘Machu Pichu Declaration’, of the APEC leaders is a major milestone to unlocking these benefits for all stakeholders in international trade.

Leah Liston of the United States Trade Representative, Executive Office of the President, said: “APEC’s focus this year on the eBL, and the underlying laws and technology needed to operationalise them showed great promise. Digitalisation of trade documents and procedures is the next step in trade facilitation for sustainable and inclusive growth. The progress made this year shows that APEC is taking on the challenge and our traders are benefiting from it.”

The commitment of the APEC economies is much welcomed and celebrated by the container shipping industry. Last year, the CEOs of the members of the Digital Container Shipping Association (DCSA), covering 75% of global containerised trade and issuing the vast majority of bills of lading, also committed to achieve 100% eBL. Additionally, the members of the FIT Alliance (BIMCO, DCSA, FIATA, ICC and Swift) launched an eBL declaration, which was signed by many cargo owners, banks, freight forwarders and IT solution providers.

Despite the obvious benefits and industry commitment, barriers to achieving 100% eBL remain and not all barriers can be addressed by the industry itself. Indeed, legislation and government procedures can complicate or even prevent the use of the eBL. In 2024, DCSA published a report pinpointing legal and regulatory barriers for 100% eBL and was invited to share its findings and discuss solutions with the APEC members.

Thomas Bagge, CEO of DCSA said: “It is great that in times of geopolitical challenges, global leaders agree that cooperation to achieve digitalisation and standardisation of trade is the way forward. At DCSA we are proud and honoured to be able to contribute to this great milestone in trade digitalisation and remain equally committed to achieving 100% eBL by collaboration with all stakeholders of global supply chains.”

As part of the Machu Pichu Declaration, the APEC leaders reaffirmed their commitment to enhance supply chain connectivity. In particular the leaders want to enhance transparency, efficiency, and reliability of trade by digitalising key processes, and the recognition of electronic trade-related documents, such as the eBL. As well as being an excellent host of the APEC summit, the Ministry of Foreign Trade of Peru (Ministerio de Comercio Exterior y Turismo) took a leading role in ensuring that the digitalisation of the Bill of Lading is made a priority at the highest levels of global politics.

Teresa Mera Gomez, Vice Minister of Foreign Trade of the Ministry of Foreign Trade and Tourism of Peru said: “Peru’s foreign trade policy strategically focuses on enhancing physical and technological infrastructure to facilitate trade, with a particular emphasis on promoting paperless trade through the digitalisation of key foreign trade documents, such as the electronic Bill of Lading. The adoption of advanced technologies and the integration of electronic records are crucial for optimising the efficiency and resilience of global supply chains. Collaboration with key industry stakeholders, such as the DCSA and the other FIT Alliance members, is vital for establishing global standards and accelerating adoption. Peru has included the prioritisation of these measures at the highest levels, as reflected in the Joint Ministerial Statements and Leaders’ Declarations. Embedding these priorities into national and regional trade agendas will enable the development of targeted initiatives to drive modernisation and connectivity in international trade.”

As follow up to the Machu Pichu Declaration, the APEC economies will work towards aligning their legal frameworks, including with the UNCITRAL Model Law on Electronic Transferable Records, and improve trade facilitation through the use of digitalisation, automation, and international standards, while strengthening border agency cooperation.

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Imitation is the Sincerest Form of Flattery

Posted on by David Priestman

The expression ‘Imitation is the sincerest form of flattery’, often attributed to Irish playwright Oscar Wilde, is applicable to the industrial landscape today as designers from Libiao Robotics, a pioneer in the invention of its award-winning AirRob automated warehouse storage system, walked through the exhibition halls at the recent CeMAT Asia event in Shanghai. For there on display were numerous imitations of AirRob, some being promoted by blue chip intralogistics manufacturers, and others by less well-known producers.

Speaking after collecting the 2024 Wu Qing Yi Logistics Innovation Award for Libiao’s AirRob system at the 12th Global Intelligent Logistics Industry Development Conference, Ms. Xia Huiling, CEO of Zhejiang Libiao Robotics Co., Ltd., addressed this proliferation of AirRob-like systems recently introduced by industry competitors, saying: “We have seen many excellent companies launch similar products based on the design concept of the AirRob system. It is my view that imitation promotes technological innovation, but plagiarism hinders innovation. I would like to talk about my views from three aspects:

“First of all, from a product perspective, I think this phenomenon shows that the concept and value of the AirRob solution have been recognised by the industry, which shows that we are heading in the right direction to change the world. Thank you for your affirmation of Libiao! Secondly, from an individual perspective, AirRob is a product that the Libiao innovation team has spent a lot of time and effort to bring to the market. Imitation behaviour does bring some emotional experiences to the Libiao innovation team at certain moments, but our focus and goal is always on how to provide customers with better solutions, how to protect customers’ time and safety through technological innovation. It is our quest to enable the logistics industry become more efficient and smarter. Finally, Libiao hopes that everyone will pay attention to our passion for innovation and belief in innovation through our systems. If AirRob can inspire the innovative spirit of more imitators and ignite the fire of innovation, Libiao is willing to be one of the few sparks.”

Innovation Advantage Through Strong Competition

When asked how Libiao manages to maintain its innovation advantage in face of fierce competition from within the industry, Ms. Xia cited four distinct points: “First, we understand that imitation is an inevitable phenomenon in the development of the industry. Just like when our ‘mini yellows’ (Libiao’s highly acclaimed AMRs) first appeared, they also encountered many imitators and the pressure was really great at that time. But at the same time, we are also very grateful to those strong competitors. As the saying goes: ‘To succeed, you need friends, and to achieve great success, you need strong competitors.’ It is these competitors that have driven our growth.

“Second, each of Libiao’s product designs is based on a deep understanding of the industry, aiming to solve pain points, provide value to customers, and solve problems fundamentally. Therefore, Libiao attaches great importance to intellectual property protection and has deployed a comprehensive patent strategy around the world, especially in developed countries, where strict legal systems can be used to safeguard its rights and interests. It is precisely because of its insistence on originality that Libiao is respected in the industry, and many industry leaders are willing to discuss the future with us, to share technology and dynamics, which allows us to ‘stand on the shoulders of giants’.

Xia Huiling

“Third, I think innovation can be divided into original creation and re-creation. Original creation requires special genes and the spirit of ‘making the world better’. Libiao has always insisted on original creation since its establishment; my definition of re-creation is to repeat innovation on the basis of original creation. Imitators belong to re-creation, and the goals of re-creators are relatively consistent, namely economic benefits. However, the values of original creation and re-creation are different, and their contributions to the world are also different. Libiao’s ultimate goal is to ‘make the world more efficient’.

“Finally, despite the tremendous changes in the logistics industry, there are still many pain points and on-site problems that need to be solved. Libiao hopes to lead the industry into a new era of healthy competition and collaboration through its own persistence and practice. Therefore, we call on more companies to join the ranks of innovators with the goal of ‘making the world more efficient’, focus on solving the core pain points of the logistics industry, and promote the industry to develop in a more efficient, smarter and more sustainable direction.”

Future Developments

As competitors circle the market aggressively with their AirRob-like products hoping to capture business from high-volume retailers and eCommerce operations, Ms. Xia is focused on Libiao’s future development strategy. “I feel that competition in the logistics industry is not fierce,” she acknowledges. “The reason why everyone feels that competition is fierce is more because of homogeneous competition, that is, price wars, which is also what everyone calls ‘volume’.

“Libiao has always insisted on differentiated competition. By solving new problems and creating new scenarios, we let users realise that modern technology can support their imagination and break the shackles of traditional thinking. Users can reorganise and optimise processes like building blocks. We are also very happy to cooperate with all parties to give full play to their respective advantages and provide more innovative possibilities and imagination space for the logistics industry. Just as the Internet once reshaped the physical industry, the logistics industry is now standing at the forefront of such a transformation.”

In a highly competitive industry sector, where technology is developing at a considerable rate, Libiao has recorded tremendous growth by bringing innovative – some have described them as pioneering – products into the marketplace that are designed to solve real challenges customers have in real situations. AirRob, which was nominated for a prestigious IFOY Award in 2023, is a prime example of that, and it is therefore no surprise that it has spurned AirRob-like imitations from companies who looked on jealously at the technology and realised they needed to catch up. Ms. Xia believes that by continuing to innovate, further growth will come.

“We hope that all our peers can realise that competition is the driving force of industry progress, but true success comes from contribution to society,” she said. “The future of the logistics industry is full of opportunities and challenges. As I said before, we are being imitated by others actually because we are doing the right thing. We are on the right path, and there is no hesitation. Engineering culture is the DNA of Libiao. We will continue to focus on flexible automation technology innovation and create value for customers. Libiao believes that true success comes from a deep insight into customer needs and unremitting efforts. We are willing to work with users and partners to protect customers’ time and value and make the world more efficient,” concluded Ms. Xia.

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Shipping Finance Closer to Net Zero Alignment

Posted on by Keith McKinley

Continued growth of climate transparency from financial institutions show that the global finance portfolio for shipping has moved closer to alignment with ambitious decarbonisation trajectories set by the International Maritime Organization (IMO), aiming to remove emissions from international shipping by 2050.

The new insights are revealed in The Poseidon Principles’ fifth Annual Disclosure Report, which showcases the climate alignment of 35 major financial institutions across 13 countries, representing nearly 80% of the global ship finance portfolio. The Poseidon Principles are a global framework for financial institutions to assess and disclose the climate alignment of their shipping portfolios, aiming to promote decarbonisation in the maritime industry.

This year’s report, which also marks the fifth anniversary of the Poseidon Principles, highlights the transformative progress achieved since its launch in 2019, when it became the world’s first sector-specific framework for measuring and reporting climate alignment in shipping finance. What began as a conversation in 2017 and was introduced as a concept under development at the first Global Maritime Forum Annual Summit in Hong Kong in 2018 has since evolved into a celebrated model for industry-specific, transparent climate disclosure in shipping — one that has inspired similar initiatives in sectors like steel, aluminium, and aviation.

Key findings from the 2024 Annual Disclosure Report include:

• Transparency on the rise: An average of 93.3% of signatories’ portfolio activity was reported, with all signatories reporting ship emissions data from at least 70% of their portfolio, 28 signatories achieving a reporting rate of 90% or above, and eight achieving 100%.
• Climate alignment performance: The average climate alignment scores showed a noticeable progression from last year, with portfolios’ alignment to the IMO’s ‘minimum’ and ‘striving’ decarbonisation trajectories improving.
• Increased collaboration: Collaboration and engagement are increasing between financial institutions and their shipping clients, demonstrating the initiative’s pivotal role in guiding the industry toward achieving net zero emissions by 2050 in line with the 2023 IMO Greenhouse Gas Strategy.

“The Poseidon Principles have redefined what is possible in transparent climate reporting for the shipping industry,” said Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping & Logistics, Citi. “As we celebrate the fifth anniversary of this initiative, we recognise both the progress made and the opportunities ahead – this milestone shows how far we have come in five years, but also serves as a reminder that we are now five years closer to critical decarbonisation targets for 2030, 2040, and 2050. We must accelerate efforts, addressing key areas of misalignment and ensuring collective ambition turns into transformative action.”

By integrating real emissions data into financial decision-making, the framework has also enabled signatories to use climate alignment scores to shape financing decisions, guide sustainability-linked lending, and support investment in green technologies such as biofuels and alternative propulsion systems. Increased transparency has also fostered closer collaboration between financial institutions and shipowners, reinforcing a shared commitment to decarbonisation.

While celebrating significant progress, the report also acknowledges the challenges of aligning with IMO’s ambitious roadmap.

“We have much to celebrate in this annual disclosure report, especially in terms of increasing levels of transparency” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Societe Generale. “However, alignment with 2050 net zero goals remains a challenge, in particular for certain vessel types that are facing operational complexities. Now, the Poseidon Principles’ adoption of well-to-wake emissions reporting offers a robust foundation for addressing these challenges head on. The Poseidon Principles will continue to evolve, setting new benchmarks for transparency and commitment to a sustainable future.”

In 2023 the Poseidon Principles adopted well-to-wake emissions reporting, encompassing full lifecycle emissions of fuels and setting a new benchmark for climate reporting in line with the latest climate science and supporting the IMO’s latest ambition.

In just five years, the Poseidon Principles have set the global standard for climate transparency in ship finance and inspired other financial disclosure initiatives like the Sustainable STEEL Principles for steel financing, the Sustainable Aluminium Finance Framework for aluminium financing, and the Pegasus Guidelines for aviation financing. Climate disclosure reporting plays a crucial role in enhancing the transparency and accountability of climate and environmental impact, risk management, and strategic planning of participating organisations and their clients.

As the Poseidon Principles enter their sixth year, the Association celebrates the transformative power of collective action, and the tangible progress made toward decarbonising global shipping. While challenges remain, the shared commitment of signatories, shipping clients, and stakeholders is a testament to what can be achieved through collaboration and transparency.

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