The maritime industry's reliance on computers and its increasing interconnectivity within the sector makes it highly vulnerable to cyber incidents. Cyber poses a threat to all parts of the shipping sector; Cyber risks can be defined as the risk of loss or damage or disruption from failure of electronic systems and technological networks.How can cyber risks occur in the shipping industry and what is covered under the P&I Rules. To help Members, the Club has compiled a Q&A on Cyber Risks and P&I Cover.
In Part I of this article, the authors introduced the three new eBL providers whose blockchain based systems were recently approved by the International Group (IG), and provided an overview on how their systems work. Here in Part II, we take a look at the recent products and initiatives of Bolero and essDOCS, two of the first generation eBL providers. We also take a look at cyber risks again and at whether the paper BL, as a tool, is still fit for purpose in today’s international trade.
The countdown is on and excitement grows as International Shipping week draws ever closer, a week that is firmly in the diary of all those related to the industry.
Three years ago, the UK P&I Club issued a Legal Briefing[1] on Electronic Bills of Lading (eBLs) in which we tried to de-mystify the concept of the eBL, by providing an insight into how the systems of the three eBL providers approved by the International Group of P&I Clubs (the “IG”) at the time, namely Bolero, essDOCS and e-Title™, work. We explained the legal principles relied upon by these providers to enable their eBLs to replicate the essential functions of a paper BL. We also tried to put cyber risks in context by explaining that these risks are risks associated with the general use of computers in our businesses, and are not risks specific to the use of eBLs.
