Lloyds Bank has successfully executed a digital trade transaction using electronic bills of lading (eBLs), simplifying cross-border trade and reducing paperwork for businesses.
Bills of lading are pivotal in global trade, serving as receipts for shipped goods. Despite their importance, digital adoption has been slow due to the requirement for physical possession. However, electronic trade documentation platforms like Israel’s WaveBL enable seamless transfer of fully digital Bills of Lading, leveraging blockchain technology to ensure authenticity and streamline trade processes worldwide.
Following Lloyds Bank’s recent integration into the WaveBL platform, its clients can securely and seamlessly transfer fully digital eBLs based on blockchain between organisations on the WaveBL network, which boasts members in 136 countries and includes four of the world’s 10 largest container shipping carriers.
Lloyds Bank’s recent deal involved Paull’s Matting, a Somerset-based supplier, importing goods from an Indian exporter. The transaction utilised an eBL issued by Mediterranean Shipping Company through WaveBL, processed via Federal Bank to Lloyds Bank.
This digital approach significantly reduced completion time, costs, and administrative burdens compared to traditional paper-based processes from 15 days to just over 24 hours. Additionally, a digital Promissory Note (dPN) facilitated payment, enhancing efficiency and eliminating the need for physical documentation exchange.
Digital trade in action
Rogier van Lammeren, head of trade and working capital products at Lloyds Bank, said: “Together, the eBL and the dPN have eradicated the need for any physical paper to change hands. This has meant a faster transaction, which helps shorten parties’ working capital cycles, with less risk, at lower cost and with significantly less admin for the businesses involved.
“We’re looking forward to helping more companies take advantage of the significant benefits digital trade offers.”
While Ofer Ein Bar, VP of financial institutions at WaveBL, also added: “The WaveBL platform boasts a proven track record in managing electronic trade documents, with over 500,000 electronic bills of lading issued via our platform since its inception.
“Utilising eBLs and other electronic trade documents in a presentation to banks seamlessly extends our trade digitalisation initiative. We’re proud to jointly lead this effort with Lloyds and Federal Bank.”
