Electronic Bills of Lading: Pros, Cons, and Effects on Shipping

The logistics industry is constantly evolving, particularly in terms of shipping. It's never the same from one decade to the next.

Hauling has been revolutionized repeatedly, with new technologies, services, and methods occurring almost daily.

If you work in the shipping industry or plan to do so soon, you may be aware of electronic bills of lading (eBills). This piece explains eBills, their benefits for businesses that use them, and potential challenges related to their adoption and its effects on the hauling industry.

Contents of Electronic Bills of Lading

The contents of an eBills will vary slightly depending on the businesses using it.

However, all eBills share a few characteristics. These include details about the shipped goods, the names of the parties involved, the issued date of the information, signatures from the parties involved, and more.

The eBills will also include information about the method of shipment, information about the carrier, and whether the goods are delivered on time as expected.

If the eBills system is implemented, businesses can track where their goods are at all times and determine the expected delivery date for the products.

Importance

Bills of lading are the contracts that determine the terms of shipping.

They indicate:

Who is sending the goods
Where are they being sent to
The quantity of the goods being shipped
The mode of carrier
The type of vessel and the port of exportation/importation

The bills of lading are crucial for importers and exporters simultaneously. The exporter needs the bill of lading to get paid, and the importer needs it to pay the exporter.

For example, the importer of a soybean shipment needs to pay the exporter for that soybean shipment. The importer can do so by purchasing the soybeans and issuing their own lading bill to the exporters. In this instance, the soybeans act as collateral for the bill of lading.

Purpose

The bill of lading tracking system is designed to provide information about the cargo's current location. It is mainly used by the shippers, consignees, and insurers of the shipment.

The bill of lading tracking system is integrated into the government, haulers, and insurers' existing information systems.

The system allows the shipping process participants to follow cargo from the port of departure to its final destination.

The two main methods for tracking lading bills are accessing the hauling company's website or calling a toll-free number provided by the company.

Tracking

Bills of lading record shipments containing the shipper, recipient, origin, destination, date, shipping type, and item description.

The bill of lading provides essential information about a shipment's source and belongings.

Hauling also requires a bill of lading by law; if not, fines or penalties may be applied.

Online bill of lading tracking tools let you monitor and manage shipments. They can trace orders from placement to delivery and offer delay and cancellation alerts.

There are several ways to track the package. For example, ShipStation and ShipHero provide free online tracking tools, as do Shipment Tracker and Ship Tracking.

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Electronic Bills of Lading

The traditional paper bills of lading used to ship goods worldwide are getting a significant makeover. While some companies already use electronic bills of lading, they haven't been widely adopted yet. However, the new technology offers several advantages over the old way of tracking shipments.

Before we discuss what makes eBills different from paper bills of lading, let's examine how the process works today.

A bill of lading lists everything about the shipment, including the name of the shipper, the consignee, the contents of the package, and where it's headed.

Then, you send the bill of lading to the transportation company, which tracks the shipment as it travels across borders.

Once the item arrives at its destination, the recipient fills out another form, called a waybill, to show that he received the shipment.

If something goes wrong during transit, the carrier will accept claims from both partners.

Types of Bills

There are three types of bills:

Electronic Bills of Lading (eBills): These are typically generated by carriers and delivery services. They include detailed information about the shipper and carrier engaged in the transaction. eBills are usually caused by scanning a paper copy of the bill of lading into a computer.
Global Trade Exchange (GTX) Bills of Lading: GTX bills of lading are used globally and are standardized across borders. They are frequently employed in international business dealings.

Customs Bills of Lading: Customs bills of lading are generated by customs authorities and are used primarily within the United States. They offer data on the entry of commodities into the United States.

Advantages

Unlike paper-based bills of lading, eBills are easier to create, track, and use. With eBills, all parties involved in a shipment can access the information related to the load in real-time, ensuring that everyone involved has the most up-to-date information.

In general, eBills have virtually eliminated paper-based transactions within the shipping industry, which has led to significant reductions in delivery costs.

Furthermore, eBills are more accessible to track than paper-based bills of lading. They are also more reliable than paper bills of lading and can be used in court to prove that a shipment was misdelivered or stolen. In addition, eBills are easier to prove as authentic than paper-based bills of lading.

Problems

An electronic bill of lading (eBill) transfers goods and property electronically. A bill of lading certifies the receipt of goods and property.

Electronic invoices are digitized and kept on digital systems, unlike traditional paper bills, which increases process security and efficiency. However, the downside of e-bills includes hacking and fraud.

The International Chamber of Commerce (ICC) defines an eBill as "a digital transaction record." eBills must include the shipper, receiver, consignee, terms of carriage, and delivery date.

But this system has serious flaws:

Common carriers don't always keep accurate records. According to the International Aviation Transport Association, around fifty percent of air freight shipments are lost.
The paperwork required to move items internationally is tedious and error-prone.
It takes a bit longer to complete the entire process.
Because most people don't know much about shipping, they often pay too much for international freight.

Effects on the Hauling Industry

The advent of electronic bills of lading has changed the hauling industry in many ways:

It has reduced the shipping industry's carbon footprint. Since eBills are digital and do not require paper, the shipping industry has reduced its carbon footprint by a large margin.
eBills have improved the transparency of the hauling industry. They have eliminated the need for paper-based transactions between the shipping parties and enabled real-time shipment tracking.
eBills have simplified the shipping industry.

eBills have reduced the time and cost of paper-based transactions. They have also made it easier to investigate the delivery or theft of shipments.

Conclusion

Electronic bills of lading have revolutionized the shipping industry by making it cleaner, more straightforward, and more transparent. They are also easier to create, track, and use than paper-based bills of lading.

Yet, there is no denying that paper-based bills of lading have served the hauling industry for decades and will continue to do so for a long time.

Therefore, if you're searching for an appropriate delivery method, you should get one that includes electronic bills of lading.

In addition, you might have a unique variety of bills that fulfill various requirements and contain sufficient information to guarantee the hauled cargo.

We are always available to assist customers in sending their goods securely.

If you have questions about our range of products, shipping prices, or information about bills of lading, our customer service team will be delighted to help. Feel free to contact us at any time, and we'll respond immediately.