New Era of Delivery: Electronic Bills of Lading and Drone Delivery
Trade has always been the main driver of transportation. Now the logistics industry, especially sea container transportation, are rapidly developing and implementing new technologies due to the increased demand for e-commerce in the retail and wholesale sectors, which has increased the requirements for the industry as a whole. Therefore, the topics of process digitalization and unmanned or autonomous vehicles are more relevant than ever. Let's consider in more detail the connection of e-commerce with transportation, electronic bills of lading and drone delivery.
Changes in trade increase demand for delivery
In recent years, e-commerce has become not just popular, but a certain trendsetter for shipping, transportation and related areas. The number of shipments is growing and new technologies and approaches are being introduced to minimize difficulties and successfully deliver millions of containers per year. Almost 50% of online retail sales take place in Asia, namely in China. But not only retail has increased, but small, medium and large businesses are increasingly using international maritime transportation for work. To meet all the demand, optimization is needed.
Transition to digital bills of lading
The preparation of various documents is a complex process, especially in maritime logistics. The bill of lading is an important document for transportation. To simplify this document flow, the idea of an electronic bill of lading, also known as eBL, was born.
It is a great idea to simplify the registration, transfer and control of documents for all participants. According to FIT, less than half of the respondents surveyed use a dual format of documentation, paper and electronic at the same time, and even fewer use the electronic version. Over 70% of respondents indicated that they are considering switching to an electronic format in the coming years.
In the course of such development of information technologies such idea should be implemented at full capacity. Unfortunately, there are a number of obstacles. What prevents to switch to eBL according to experts:
1. Technical base. A large-scale project requires appropriate technical support for all participants in the process. Currently, there are several platforms that implement this work. But for a larger number of users, large-scale solutions are needed, which requires large investments in development.
2. Resistance to change. The paper system is clear and well-established. Innovations in business often cause resistance.
3. Regulatory clarity. The regulatory framework may not be fully adapted to such technologies. The logistics industry is not keeping up with digitalization, so there may be difficulties.
4. Competitiveness. The development and implementation of eBL requires a lot of financial and technical resources. While the paper format no longer requires investments.
5. Financial viability. Currently, the development is subsidized by stakeholders. However, when the project reaches a global scale, additional funding may be required. It is expected that there may be a fee for using eBL. However, it should not be forgotten that the costs of regular document delivery will be significantly reduced.
It is important to emphasize that the implementation of electronic bills of lading is not just a transfer of a document into an electronic file, but part of a comprehensive approach to optimizing trade processes. Global trade is developing rapidly, in recent years the total turnover of paper documents has reached several billions. This entails a large carbon footprint and costs. A global solution is needed.
This is understood by leading ocean carriers, 9 of which have committed to fully transitioning to an electronic bill of lading by 2030. Therefore, with the support of states, major players in the industry, and time, eBL will become the mainstay in transportation.
Drones – a new stage in transportation
In addition to the new format of working with documents, logistics is actively working on the delivery of the “last mile” or other transportation. This can apply to cargo samples and documents, to the delivery of certain goods. The use of drones and unmanned systems that are controlled without visual contact with the pilot opens up many opportunities for cargo transportation by sea.
The perspective opened by the use of drones:
1. The drone can be several times faster, especially at short distances.
2. More human resources are available for other tasks, not just transportation.
3. It is more cost-effective than classic deliveries.
4. A single drone emits significantly less carbon emissions than any other form of transportation.
A number of countries have already begun testing the use of drones in their port infrastructures on a regular basis, such as recent news about Brazil.
The main work that drones are currently doing:
1. Delivery from shore to ship and back
2. Transportation of small parcels through the port area
3. Testing delivery from warehouse to retail customer
4. Emergency response
5. Survey of territories and vessels
Of course, the use of drones has its own technical and safety challenges. However, the capabilities of drones currently average up to 6 kilograms over a distance of 25-50 kilometers, but there is an ambitious goal to develop a drone that can carry 100 kilograms of cargo over 100 kilometers. Some leading companies are already receiving funding for this. Along with the development of technology, the field of logistics will change.
New Era of Delivery: Electronic Bills of Lading and Drone Delivery
Trade has always been the main driver of transportation. Now the logistics industry, especially sea container transportation, are rapidly developing and implementing new technologies due to the increased demand for e-commerce in the retail and wholesale sectors, which has increased the requirements for the industry as a whole. Therefore, the topics of process digitalization and unmanned or autonomous vehicles are more relevant than ever. Let's consider in more detail the connection of e-commerce with transportation, electronic bills of lading and drone delivery.
Changes in trade increase demand for delivery
In recent years, e-commerce has become not just popular, but a certain trendsetter for shipping, transportation and related areas. The number of shipments is growing and new technologies and approaches are being introduced to minimize difficulties and successfully deliver millions of containers per year. Almost 50% of online retail sales take place in Asia, namely in China. But not only retail has increased, but small, medium and large businesses are increasingly using international maritime transportation for work. To meet all the demand, optimization is needed.
Transition to digital bills of lading
The preparation of various documents is a complex process, especially in maritime logistics. The bill of lading is an important document for transportation. To simplify this document flow, the idea of an electronic bill of lading, also known as eBL, was born.
It is a great idea to simplify the registration, transfer and control of documents for all participants. According to FIT, less than half of the respondents surveyed use a dual format of documentation, paper and electronic at the same time, and even fewer use the electronic version. Over 70% of respondents indicated that they are considering switching to an electronic format in the coming years.
In the course of such development of information technologies such idea should be implemented at full capacity. Unfortunately, there are a number of obstacles. What prevents to switch to eBL according to experts:
1. Technical base. A large-scale project requires appropriate technical support for all participants in the process. Currently, there are several platforms that implement this work. But for a larger number of users, large-scale solutions are needed, which requires large investments in development.
2. Resistance to change. The paper system is clear and well-established. Innovations in business often cause resistance.
3. Regulatory clarity. The regulatory framework may not be fully adapted to such technologies. The logistics industry is not keeping up with digitalization, so there may be difficulties.
4. Competitiveness. The development and implementation of eBL requires a lot of financial and technical resources. While the paper format no longer requires investments.
5. Financial viability. Currently, the development is subsidized by stakeholders. However, when the project reaches a global scale, additional funding may be required. It is expected that there may be a fee for using eBL. However, it should not be forgotten that the costs of regular document delivery will be significantly reduced.
It is important to emphasize that the implementation of electronic bills of lading is not just a transfer of a document into an electronic file, but part of a comprehensive approach to optimizing trade processes. Global trade is developing rapidly, in recent years the total turnover of paper documents has reached several billions. This entails a large carbon footprint and costs. A global solution is needed.
This is understood by leading ocean carriers, 9 of which have committed to fully transitioning to an electronic bill of lading by 2030. Therefore, with the support of states, major players in the industry, and time, eBL will become the mainstay in transportation.
Drones – a new stage in transportation
In addition to the new format of working with documents, logistics is actively working on the delivery of the “last mile” or other transportation. This can apply to cargo samples and documents, to the delivery of certain goods. The use of drones and unmanned systems that are controlled without visual contact with the pilot opens up many opportunities for cargo transportation by sea.
The perspective opened by the use of drones:
1. The drone can be several times faster, especially at short distances.
2. More human resources are available for other tasks, not just transportation.
3. It is more cost-effective than classic deliveries.
4. A single drone emits significantly less carbon emissions than any other form of transportation.
A number of countries have already begun testing the use of drones in their port infrastructures on a regular basis, such as recent news about Brazil.
The main work that drones are currently doing:
1. Delivery from shore to ship and back
2. Transportation of small parcels through the port area
3. Testing delivery from warehouse to retail customer
4. Emergency response
5. Survey of territories and vessels
Of course, the use of drones has its own technical and safety challenges. However, the capabilities of drones currently average up to 6 kilograms over a distance of 25-50 kilometers, but there is an ambitious goal to develop a drone that can carry 100 kilograms of cargo over 100 kilometers. Some leading companies are already receiving funding for this. Along with the development of technology, the field of logistics will change.
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