POSCO International Launches e-B/L Consortium to Digitize Trade

POSCO International (047050.KS) is accelerating the digitization of its entire trade process by converting paper bills of lading into digital documents.

The company said on the 26th that it signed a memorandum of understanding on the 25th at the POSCO Center in Seoul with POSCO Flow, global shipping line ZIM, Hana Bank, the Korea Trade Network (KTNET) and Taeoung Logistics (124560.KS) to promote electronic bills of lading (e-B/L), officially launching an e-B/L consortium.

The consortium brings together core players in trade transactions, including a general trading company, a shipping line, a logistics firm, an electronic trade platform operator and a financial institution. The participants will jointly build infrastructure for issuing and trading e-B/Ls. They will also work to expand the use of e-B/Ls by shippers and financial institutions while cooperating on related regulatory improvements and legislation.

A bill of lading is a core trade document that serves as the basis for cargo ownership and payment settlement. Most bills of lading are currently issued as paper originals, and it takes about five to 10 days for them to pass through exporters, importers, shipping lines and banks. This process incurs international express courier costs and carries risks of delivery delays, loss and forgery.

An e-B/L replaces these paper originals with digital documents, handling issuance and trading online.

In July, POSCO International conducted a pilot test applying ZIM's e-B/L platform WAVE BL to a transaction exporting auto parts from Busan to Charleston in the United States. After reviewing the issuance and trading of the bill of lading and the cargo delivery process, the company confirmed that it could reduce document transfer times and related costs and lower the risks of document loss and forgery. Based on those results, it signed this agreement to apply e-B/Ls across its trade operations.

POSCO International, which is leading the consortium, will oversee the spread of e-B/Ls and drive the digitization of trade finance. POSCO Flow, which handles POSCO International's container transport contracts, will help mediate between shipping lines and shippers to expand e-B/L issuance.

ZIM will support e-B/L issuance and platform integration and distribution, while KTNET will handle the operation of the electronic trade platform for e-B/L distribution and its integration with trade finance systems. Hana Bank will provide advisory services on trade finance processes and cooperate on related financial services, and Taeoung Logistics will support logistics operations and the e-B/L issuance process.

POSCO International expects that as e-B/Ls become more widespread, trade document turnaround times could be reduced to within a few hours. It also anticipates cutting international express courier and document processing costs by up to 80%, along with reductions in carbon emissions.

POSCO International plans to make e-B/Ls a core task of its trade digital transformation (DX) and apply them to import and export operations in stages. It will also build an "e-Nego" system that digitizes trade finance procedures such as the purchase of export bills of exchange, aiming to enhance overall digital connectivity spanning document preparation, logistics, finance and payment collection.

Jeong Kyung-jin, a division head at POSCO International, said, "This consortium will set a new standard for a Korean-style e-B/L ecosystem. Beyond simply digitizing documents, we will accelerate the digital transformation of the entire trade process and contribute to strengthening national logistics competitiveness."