TradeLens Finally Completes Its First End-To-End Paperless Trade Finance Transaction
IBM and AP Moller-Maersk, the digital platform the TradeLens, has recently completed its first end-to-end paperless trade finance transaction. The contract involved the agreed shipment of agrichemicals from South Korea to Bangladesh by Syngenta, subsidized with a letter of credit from HSBC.
The parties shared all their requisite documents via the TradeLens platform. The documents include the commercial invoice, bank collection documents, the electronic bill of lading (eBL) directly from the ocean carrier Sealand and the packing list.
This procedure knocked 10 days off the standard document processing lead time for Syngenta and assisted in avoiding the extra costs due to delayed paperwork, TradeLens stated.
Besides, HSBC’s regional head of product management, global trade, and receivables finance for the Asia Pacific, Sanjay Tandon, stated, “trade between proximate markets is often encumbered by paperwork, leading to delays and higher costs. Removing paper from the process should not only increase the efficiency and velocity of trade but also enhance the appeal of the letter of credit as a trade finance solution by minimizing documentary complexity.”
The said transaction is marked as an expansion in focus for the TradeLens eBL, further targeting the shipping industry. It also gauges multiple terminals, customs authorities, inland depots, and intermodal providers among its associates.
GTR tells, Head of strategy and operations at TradeLens, Daniel Wilson stated, “there are simpler scenarios where there is just the shipper, or the shipper and their consignee involved – sometimes called telex release and straight consignments respectively. Those were our launch scenarios, as the dependencies for getting up and running are fewer.”
Besides this, he even added that TradeLens is currently exploring alliances with financial institutions and other platforms to construct a completely integrated experience for clients, combining digital LC or other instrument allotments through to final settlement and cargo clearance.