COVID-19 has resulted in unprecedented disruption to the mechanics of most economies, placing a major strain on the world’s supply chains, including essential linkages relating to food and medicines. The current state of supply chain logistics has exacerbated this strain, creating unnecessary delays caused by the manual and paper-based processes still used in some vital links in the chain.
Take, for example, the bill of lading (B/L). In the container journeys, B/Ls are still often being printed on paper and passed from hand to hand as the container passes from vehicle to vehicle, from land to sea, and from country to country. As a result of the pandemic, cargo is getting stuck in ports waiting for paperwork that is delayed due to flight disruptions, people not being in the office to print B/Ls, or banks not being able to process the documentation in time. Having the electronic bill of lading (eBL) as the dominant format for B/Ls would reduce such delays.
This is just one of many examples of how digitalization can help future-proof the container shipping industry, improving efficiency, agility, innovation, and customer service. But to digitalize the supply chain from end to end, IT solutions must be interoperable at every link in the chain. This requires widespread adoption of digital standards such as those DCSA and its members and collaborators are working to develop.
In banking, telecommunications, and e-commerce, a standardized approach to digitalization has produced a better customer experience and increased efficiency and innovation for some time. Container shipping can enjoy the same benefits that have enabled these industries to weather the COVID-19 storm without impacting the customer experience. Change will take time, so the industry must start collaborating now on the adoption of standards that will help future-proof the industry, such as those published by DCSA.