Paperless Shipping Process Between Syngenta and HSBC With TradeLens
The world of trade finances saw a new record today as the first entirely paperless transaction occurred between Syngenta and HSBC. The transaction refers to a digital bill of lending processed by A.P.Moller-Maersk and IBM’s company, TradeLens. They used blockchain technology to complete a letter of credit between the two companies mentioned above.
Maersk issued a notice that elaborated that the paperless process was regarding agrochemical products from South Korea to Bangladesh. It further added that this transaction is an important event in the global trade ecosystem. It will lead to better supply chain efficiency and trade finance modernization.
During this entire transaction, the TradeLens platform shared all related important documents like bank collection documents, analysis and origin certificates, and the commercial invoice between the two companies. In addition, they also delivered an entirely digital bill of lending from Sealand, a Maesrk company, the ocean carrier.
Till now, there have been very few bills of lending that have been completely digitized. But now, with TradeLens’s end-to-end SaaS solutions, the number of electronic bills of lending can be increased to provide an entirely paperless process between companies.
More than 700 companies, including several ocean carriers, use the TradeLens system. They represent almost 2/3rd of the global market trying to help the trade finance industry modernize themselves by working alongside several trade finance banks in various countries around the globe. In addition, TradeLens tracks almost 25 million published documents, 4.7 billion events, and 55 million container shipments.
Head and CEO of TradeLens, Michael White, explained how important it is to modernize infrastructure with digital-first technology, and the elimination of physical documentation during the pandemic. He further elaborated that their eBL system is the solution to this problem. It is the future in the trade finance world as it will provide paperless trade tools to make trade smoother. In addition, it can help clients to realize their immediate cost savings. He also added that they are thrilled to be working alongside several leading banks like HSBC to bring their new solution to the global market.
The Regional Head of Receivable Finance, Global Trade, and Product Management, Asia Pacific, HSBC, Sanjay Tandon, described a similar picture. He said that excessive paperwork leads to higher costs and trade delays between proximate markets. He also explained that making this a paperless transaction will minimize documentary complexity, improve the appeal of credit letters, and improve trade velocity and efficiency.