Digital trade finance network Contour has reached an agreement to connect its letter of credit (L/C) solution with the TradeLens blockchain-based supply chain platform that enables the secure and transparent transfer of electronic bills of lading (eBLs).

The collaboration sees an apparently significant merging of the TradeLens digital platform launched by IBM and A P Moller-Maersk with it's direct access to major ocean carriers with Contour's established trade finance network.

Vital digital partnerships

Contour says that no one solution can provide end-to-end digitisation, but through partnerships like this one, corporates and banks can synchronise their trade finance requirements with the physical shipment and benefit from an interoperable, end-to-end paperless transaction.

Because the bill of lading is an essential document used to facilitate shipments, digitally transforming eBLs aims to simplify and streamline the entire trade finance process.

eBL benefits

The TradeLens eBL simplifies the issuance, transfer and surrender of original shipping documents by digitising the transfer of title process.

It is an eBL solution accepted by the industry, including ocean carriers, banks and regulators and complements a supply chain ecosystem that facilitates information exchange for more than 65 per cent of containerised trade.

Partnership example

The Countour-TradeLens partnership could work, for example, when a party using the Contour digital L/C solution and it's counterparty specify the TradeLens eBL as the required proof of shipment.

This should reduce the need to receive, send, and amend paper documents, thereby enhancing the overall user experience by reducing complex workflows and improving turnaround times.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.