DBC Use Cases Electronic Bill of Lading EBL

Summary

Martijn, from the Port of Rotterdam, discusses the potential of blockchain technology in digitizing the Bill of Lading (BoL), a crucial document in maritime trade. He highlights the inefficiencies and costs associated with paper-based BoLs and the projected savings of around $4 billion annually through digitization. The 'The Liver' project, a collaboration with Samsung and ABN AMRO, aims to integrate digital ownership into the supply chain, demonstrating initial success with a technical proof of concept. Martijn envisions a future where digital documents are the global standard, facilitated by open-source blockchain solutions and international cooperation.

Takeaways

• 😀 Martijn works for the Port of Rotterdam, focusing on digital strategy and commercial applications, including blockchain technology which has significant potential.
• 📝 An eBL (electronic Bill of Lading) is an electronic version of a paper document that dates back to the Middle Ages, used to facilitate trade between different cultures and countries.
• 💼 The eBL is crucial as it often signifies ownership of goods, although this is not always the case, and the transition from paper to digital is complex due to legal and historical reasons.
• 🚢 Martijn is a co-founder of BLOC, an organization developing blockchain solutions for logistics and energy, and is also a co-author of a book on blockchain and supply chain management.
• 💡 The business case for eBL lies in efficiency, with potential savings of around 4 billion dollars annually in the maritime world due to reduced inefficiencies and errors.
• 🌐 The Port of Rotterdam, in collaboration with Samsung, ABN AMRO, and others, is working on a project called 'The Liver', aiming to achieve savings of about 2.5% of the value of goods through digitalization efforts.
• 🔒 The transition to digital Bills of Lading is challenging due to legal systems worldwide that often require paper documents with signatures, even in cases where digital versions are available.
• 🔄 The urgency for digitalization has increased due to COVID-19, where paper documents cannot be collected or delivered due to travel restrictions, impacting the shipment of goods.
• 🔑 Blockchain technology offers a solution to the challenges of digital Bills of Lading by providing a decentralized validation system, ensuring a single version of truth and clear ownership.
• 🤝 The Port of Rotterdam is collaborating with Singapore, a major port and trading hub, to develop and implement digital solutions for trade efficiency, including the use of eBL.
• 🌟 The collaboration between the Netherlands and Singapore is an open-source project, with shared codebases and a focus on international trade, aiming to make the digitalization of trade documents a global standard.

Q & A

Who is Martijn and what is his role at the Port of Rotterdam?

Martijn is a professional working at the Port of Rotterdam, where he is responsible for the digital strategy and commercial applications related to it. He is particularly involved with blockchain technology, which he sees as having a lot of potential.

What is the significance of an electronic Bill of Lading (eBL) in the context of the maritime world?

An eBL is an electronic version of a paper document that has been used since the Middle Ages to facilitate trade between different cultures and countries. It records the details of goods and their ownership, and in certain cases, owning the eBL can imply owning the goods themselves.

What is the potential business case for eBL in terms of efficiency and cost savings?

The business case for eBL lies in its potential to increase efficiency and reduce costs. In the maritime industry alone, it could lead to savings of around 4 billion dollars per year by eliminating inefficiencies and reducing errors from manual data entry.

What is the 'The Liver' project and how does it relate to the digitalization efforts of the Port of Rotterdam?

The 'The Liver' project is an initiative by the Port of Rotterdam in collaboration with Samsung, ABN AMRO, and others, aimed at digitalizing certain aspects of the maritime industry. It is part of broader efforts to achieve savings and increase the efficiency of goods transportation.

What is the current challenge in transitioning from paper Bills of Lading to electronic versions globally?

The challenge lies in the legal systems around the world that often require paper documents with signatures. Even when documents are digital, there is still a need for paper copies, making the transition complex and slow.

How does the COVID-19 pandemic highlight the need for digital Bills of Lading?

The pandemic has caused disruptions in the physical movement of paper documents, leading to situations where goods are shipped but the accompanying documents cannot be retrieved or delivered due to travel restrictions, emphasizing the urgent need for digital solutions.

What role does blockchain technology play in facilitating the digitalization of Bills of Lading?

Blockchain technology provides a decentralized way to validate and record transactions, ensuring that there is only one version of the document and clear ownership, which is essential for the digitalization of Bills of Lading.

What has been achieved so far in the collaboration between the Port of Rotterdam and Singapore in the context of digital Bills of Lading?

They have built a technical proof of concept to test the functionality of the digital Bills of Lading and are integrating it into the 'The Liver' platform. They have also conducted a demo and are working on legal adaptations for digital property transfer in Dutch legislation.

What are the next steps for the project after achieving the technical proof of concept?

The next steps include expanding the technical proof of concept to live environments, testing with actual container shipments between Singapore and the Netherlands, and eventually adapting legislation to accommodate the new standard of digital Bills of Lading.

What is Martijn's vision for the Port of Rotterdam and the Netherlands in the next five years regarding digital Bills of Lading?

Martijn hopes that within five years, the legislation will no longer specify 'paper' but will allow for both 'paper or digital' as valid forms of Bills of Lading, signifying a global standard for the industry.

How does the open-source approach benefit the collaboration between different parties involved in the digital Bills of Lading project?

The open-source approach allows for transparency, shared development, and the ability for anyone to download and use the software. It facilitates collaboration by providing a platform where ideas and code can be shared and improved upon by all participants.