POSCO International to Convert Paper Bills of Lading to Digital Format

Consortium Launched with Key Players in Shipping, Logistics, Finance, and Electronic Trade
Trade Document Distribution Accelerated from 5-10 Days to Just a Few Hours

POSCO International is accelerating the digital transformation of its trade processes by converting paper bills of lading to digital format.

On August 25, POSCO International held a signing ceremony at the POSCO Center in Seoul, entering into a "Memorandum of Understanding (MOU) for the Activation of Electronic Bills of Lading (e-B/L)" with POSCO Flow, global shipping company ZIM Integrated Shipping Services Ltd (hereafter ZIM), Hana Bank, Korea Trade Network (KTNET), and Taewoong Logistics. With this, the e-B/L consortium was officially launched.

Infographic on the Activation of Electronic Bill of Lading. POSCO International

The consortium brings together key companies in trade transactions, including a general trading firm, shipping company, logistics provider, electronic trade platform operator, and financial institution. Participating companies will jointly build e-B/L issuance and transaction infrastructure, promote greater usage among cargo owners and financial institutions, and collaborate on regulatory improvements and legislation related to electronic bills of lading.

The bill of lading (B/L) is a core trade document that serves as proof of ownership of cargo and as a basis for payment settlement. Currently, it is mostly issued in paper format, and transfer between exporters, importers, shipping companies, and banks usually takes 5 to 10 days. This process incurs international courier fees and also involves risks of delivery delays, loss, or forgery and alteration.

The e-B/L system replaces these paper originals with digital documents, enabling issuance and transactions to be processed online.

Prior to this agreement, POSCO International conducted a pilot test in July by utilizing ZIM's e-B/L platform 'WaveBL' for an export of auto parts from Busan to Charleston, USA. After examining the process of B/L issuance, transaction, and cargo delivery, POSCO International found that the new system could reduce document transmission time and related costs, while minimizing risks of document loss or falsification. This agreement is a follow-up measure, based on the successful pilot, to expand e-B/L adoption throughout all trade operations.

As the lead of the consortium, POSCO International will oversee the spread of e-B/L and spearhead the digitalization of trade financing. POSCO Flow will manage container transport contracts for POSCO International and facilitate cooperation between shipping companies and cargo owners to increase e-B/L issuance. ZIM will support e-B/L issuance and platform integration and distribution, while KTNET will operate the electronic trade platform for e-B/L transactions and handle integration with trade financing systems. Hana Bank will provide advisory services on trade finance processes and collaborate on related financial services, and Taewoong Logistics will support logistics operations and the e-B/L issuance process.

POSCO International anticipates that widespread adoption of e-B/L could reduce the trade document circulation period from the conventional 5 to 10 days down to just a few hours. The company expects that costs related to international express and document handling could be reduced by up to 80 percent. Furthermore, the reduction in paper documents and international shipping will help lower carbon emissions.

Jung Kyungjin, Executive Vice President at POSCO International, stated, "This consortium combines decades of accumulated trade expertise as a general trading company with Korea's top-tier electronic trade and financial partners, setting a new standard for the e-B/L ecosystem in Korea," and added, "We will accelerate the digital transformation of the entire trade process, going beyond simple document digitization, and contribute to enhancing national logistics competitiveness."

POSCO International plans to make e-B/L a core initiative of trade digital transformation (DX) and will apply it progressively to the company’s export and import operations. The company will also build an 'e-Nego' system to electronicize trade financing procedures such as export bill purchases, thereby enhancing digital connectivity across document preparation, logistics, finance, and payment collection. By doing so, POSCO International aims to improve connectivity and utilization of data generated throughout the process and to continually enhance operational efficiency.

This content was produced with the assistance of AI translation services.