Electronic bills of lading – progress on key issues and hot topics

In March 2025, HFW hosted a seminar on electronic bills of lading (EBLs) in Geneva at which Marina Comninos, Co-Head of ICE Digital Trade, gave the keynote address. This was followed by a panel discussion with HFW partners Michael Buisset, Olivier Bazin, Matthew Wilmshurst, Anna Fomina and Daniel Martin. In this article we assess the key takeaways and hot topics which emerged.

Key takeaways

Take a first step. In her keynote address, Marina Comninos encouraged participants to take a step towards digitalisation, however small. She pointed out that the legal, regulatory and security questions around the use of EBLs have largely been resolved and although greater standardisation between the platforms is required for them to be truly interoperable, the platforms are actively working to improve this. Marina identified the 4 pillars of interoperability as standard based secure solutions, growing adoption by local laws, robust inter-platform liability agreements and IG P&I consent.

Progress in trade finance: Olivier Bazin discussed a landmark USD 2.885 billion borrowing base facility in late 2024 between Trafigura and 27 banks where ING acted as security agent. For the first time in a syndicated loan, the banks agreed to take security over English law EBLs. The ICE platform was advised by HFW. In addition to reducing the risk of fraud and double financing, Olivier highlighted that the switch to EBLs can enable banks to treat a pledge of a bill of lading as secured collateral, whereas paper bills are often classified as unsecured collateral only, given lack of possession. This is a major advantage of EBLs over paper bills.

Progress on reliability: Matthew Wilmshurst discussed the concept of a “reliable system” introduced by the UK Electronic Trade Documents Act 2023 and the importance of due diligence when using EBL platforms. Whilst reliability was a major focus of initial discussion about EBLs when the Act came into force, this now seems to be much less of a concern: the industry seems to have broadly accepted that there are reliable systems in operation, especially if they are approved by the International Group of P&I Clubs.

Progress in interoperability: The panel agreed that the technical challenges around interoperability have been largely resolved, with frameworks in place to ensure EBLs can be exchanged across different platforms. The next focus is on standardisation of data used by different platforms and further discussion on this was encouraged.

Hot topics:

Functionality and Visibility: Anna Fomina emphasised the potential for EBLs to reduce misdelivery claims against carriers resulting from the discharge of cargo without original bills of lading in exchange for a letter of indemnity (LOI). Many EBL platforms have the technical capability to make information available to carriers (and other users) in real time about the holder of an EBL and even, potentially, the status of the cargo; and to enable an EBL holder to present the “original” bill to the carrier in circumstances where previously, a paper bill would have been delayed in transit, misplaced or lost. The data available on an EBL platform offers an opportunity to the shipping industry to take a big leap from the obscurity that was prevalent for centuries in the paper trade.

Anna acknowledged that making some of this information visible in real time may be too much of a leap for the industry at this stage and there is a push from some industry players towards reproducing the functionality of a paper bill on the EBL platforms as closely as possible. We have seen some indications that the industry may even be comfortable with the current LOI model, where carriers are prepared to take on the risk of misdelivery claims in exchange for an LOI instead of insisting on surrender of an EBL. This may well be the extent of the first step towards digitalisation with which the industry is comfortable, but the question of how much visibility the industry wants has not yet been widely discussed amongst stakeholders. The platforms’ initial reaction is that they can provide a system which follows industry consensus on how much visibility is provided to a carrier before delivery.

Sanctions: Daniel Martin addressed the relevance of sanctions in the context of EBLs and the importance of compliance checks by both platforms and users.

The key issue likely to arise in the context of sanctions is the identity of the holder of the EBL. The transfer of an EBL to a person who or which is designated by a relevant sanctions authority will be a breach of the relevant asset freeze. Likewise, the delivery of goods to a designated individual or entity will breach sanctions.

Historically, carriers would potentially only learn that a paper bill had been transferred at the time of presentation, at which point there is very little time available for them to decide whether the goods may lawfully be delivered to the bill of lading holder. Going forward, carriers may push for greater visibility and “real time” information about each transfer of an EBL so that they can screen each holder of an EBL at the earliest opportunity.

Daniel made the point that if carriers receive “real time” information about transfers of EBLs then the EBL is going beyond merely replicating a paper instrument, and some participants may be concerned that the extra functionality creates extra exposure, in the event that an intermediate holder of an EBL (which never presents the EBL but instead transfers it) is a designated person. 

While that might give rise to exposure on the part of a carrier (as well as other participants), participants in those systems which rely on an agreed rulebook that binds each user (and to which users must agree in advance) may draw some comfort from the fact that each user is subject to a level of due diligence and compliance checks by the platform, and also that each user will commonly warrant that they will only use the system in full compliance with sanctions.

Ultimately the impact of sanctions on EBLs is a complex topic, and one which we may explore in more detail in future sessions.

Further discussion:

For more information on the topics raised in this article, please contact the partners named. 

HFW has received interest in a follow-up seminar addressing questions of interoperability, visibility and sanctions in more detail. If you would be interested in attending, please click here.