On 1 February 2021, the Singapore parliament passed the Electronic Transactions (Amendment) Bill2 which adopts the UNICTRAL Model Law on Electronic Transferable Records (“Model Law”), with certain modifications.
Members are often asked to accept letters of indemnity (LOIs) from their shippers or charterers in return for the delivery of cargo without presentation of original bills of lading, the delivery of cargo at a port other than that named in the bill of lading (or both) and in various other circumstances.
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.
Further to the UK Club’s recent Legal Update on Electronic Bills of Lading (Part I & Part II), the Frequently Asked Questions and Answers are provided for Members’ additional guidance.
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.
The digital revolution gathers momentum, and almost every day there are new technological developments. This briefing looks at one of these developments; blockchain contracts, also known as 'smart contracts', the benefits as well as the legal issues that may arise under these contracts.
We have recently seen many of our Members switching to electronic bills of lading ("eBLs") on some of their trades. The move towards a paperless trade is therefore gaining momentum. The Club is, however, still receiving many questions about eBLs and about the three eBL systems approved by the International Group of P&I Clubs, namely Bolero, essDOCS and e-titleTM. This Legal Briefing provides brief explanations on these three systems and how each of them works.
