We have recently completed the first ICE CargoDocs electronic Bill of Lading (eBL) transaction for imports into Bahrain, involving the sale of iron ore pellet feed from Acu Port, Brazil. DBS Bank acted as the advising bank on behalf of Anglo American the exporter, with HSBC Bahrain acting as the issuing bank on behalf of the buyer, Bahrain Steel. This milestone marks a significant step in our digitalisation journey by facilitating the adoption of an end-to-end paperless solution.
The use of electronic bills of lading (eBLs) increases efficiency, reduces costs and improves the overall transparency and security of trade. In contrast, paper bills of lading are inefficient, slow down trade and are vulnerable to fraud and human error. The eBL for this transaction was processed electronically through ICE CargoDocs, thus enabling secure, online real-time collaboration between all parties across drafting, approving, signing, issuance, transfer and electronic presentation of the eBL and relevant supporting documents.
Last year, BIMCO launched the “25 by 25 pledge”, a commitment where shippers commit to a target of moving at least 25% of a commodity on eBLs by 2025. Together with BHP, Rio Tinto and Vale, we were among the very first to sign up to the pledge and in an encouraging development for trade digitalisation, BIMCO's "25 by 25" campaign recently announced that it has already surpassed its initial target within its first year.
This early success marks a significant milestone in the ongoing effort to streamline supply chain processes and accelerate the digital transformation of trade in the bulk sector. Being able to achieve the target by participating iron ore shippers within a year into the campaign is a testament to the industry's commitment to digital transformation as well as the dedication of key players in the dry bulk sector to improving operational efficiency through digital solutions. The next step is to broaden the campaign to include other bulk trades.
Timo Smit, Executive Head of Marketing, said: “At Anglo American, we are committed to supporting initiatives that help to drive innovation and efficiency in our products’ supply chains. Digitisation is a key enabler for such a drive and the use of electronic bills of lading is a natural part of this journey. We are proud to be a signatory to the 25 by 25 pledge.”