One of the leading developers of online payment systems for business-to-business (B2B) exchanges has announced a partnership with one of the largest providers of marine cargo insurance. Tradepaq's partnership with CNA's marine division aims to enable customers to complete trade transactions for ocean shipping faster and more reliably.

Exporters taking out maritime insurance cover usually do so on a per transaction basis or on blanket coverage not to exceed a certain amount. On a per transaction basis, exporters will submit an insurance certificate application to the insurer for approval before forwarding it to the bank. On a blanket basis, exporters report their transactions to the insurer periodically.

Direct connection reduces risks

Both options are time consuming, error-prone and require extensive administrative costs. They also involve risk since mistakes can cause uninsured goods to be shipped. The Tradepaq alternative is to offer customers a direct connection to CNA's OMMni (Ocean Marine Manager network interface) system.

With this interface, exporters can automatically send secure messages, rather than paper-based documents, directly to CNA. The insurer will then process the message and e-mail back an approval number so exporters can print pre-approved insurance certificates from their Tradepaq system.

Documentary credit management

Tradepaq's claims that its systems allow enterprises to manage shipping requirements of electronic commerce, generate multi-lingual trade documents, and maintain compliance with international trade regulations. Its solutions include facilities for documentary credit creation, receipt, management, and collections.

Exporters are provided with the regulatory and logistics documents to ship cross-border. If documentary credits are part of the transaction, Tradepaq assures that the documents meet the bank's needs, thereby assuring prompt payment of the transaction.

Tradepaq also provides importers with the purchasing and banking-related documents for in bound shipments. If documentary credits are part of the transaction, the system provides an interface with the bank so the necessary credits for settlement can be created.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.