New digital channel for trade documents between Europe and China cuts transaction time from weeks to hours

Published: October 16, 2024
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In a landmark collaboration, Enigio and TradeGo have developed an interoperable digital channel for electronic trade documents, facilitating trade between Europe and China.    

This connected digital channel streamlines the entire process for all stakeholders, including logistics providers, exporters, importers and their banks.  Whether using Letters of Credit, Documentary Collections or Open Account terms, this enables transactions that previously took up to two weeks to be completed in just one business day.   

TradeGo and Enigio have built an integration leveraging the Digital Container Shipping Association’s (DCSA) electronic bill of lading (eB/L) standards. This means that users of Enigio’s trace:original in Europe, or elsewhere, can now digitally transact with users of TradeGo in China.   

A real-world example of this success was demonstrated when global freight forwarder and carrier, Fr Meyer’s Sohn Seaways AG (FMS), issued an electronic bill of lading, under English law, to Global Forest Products Sweden AB, a pulp and paper trader. This bill of lading, together with other trade documents, was then electronically presented to one of the UK’s leading banks, Lloyds, who was the advising bank under a Letter of Credit issued by a major Chinese bank, and subject to the ICC’s e-rules for Documentary Credits – the eUCP.  Lloyds then transferred the eB/L and supporting documentation to the Chinese bank, who then transferred the documents electronically to the importer, a wood pulp importer in Jinan, China. To complete the transaction, the eB/L was surrendered by FMS Qingdao. 

This demonstrates that all the pieces needed to transact digitally are now in place, including the UNCITRAL Model Law for Electronic Transferable Records (“MLETR “) legal framework, ICCs eUCP and Enigio’s trace:original technology interoperable with the TradeGo platform. The highway of end-to-end global trade digitalisation is now open.    

“This is a breakthrough for exporters and importers across Europe and China,” said Ulf Eggefors, Director, Transport & Logistics, at Enigio. “Our digital solution now delivers global coverage and a secure, fast and sustainable network for trading digitally. What is most exciting is the ease of use. The days of relying on paper processes and waiting for courier envelopes are behind us.” 

Steven Zhou, Director, Commercial Dept., at TradeGo said “the best part of this collaboration is that users in different regions can conveniently choose the solution provider which suits them, especially for banks, who don’t have to put much effort into accessing multiple platforms. Solution providers can focus their efforts on serving the markets around them, thereby contributing to global trade digitalization as a whole." 

Heiko Voigt, CEO of Fr.Meyer’s Sohn, echoed the sentiment, saying, “We are extremely happy and proud to successfully digitalise the first LC based shipment from Europe to China. This is a great milestone on our path to lead trade digitalisation. Thanks to all involved partners and colleagues on this project.” 

Andreas Ceder, CEO of Global Forest Products Sweden AB, added, “Global Forest Products is committed to modernising the pulp and paper industry by adopting digital solutions to streamline traditionally manual processes. As part of our ongoing efforts to enhance operational efficiency and better serve our suppliers and customers, we are prioritising the digitisation of trade documentation across key markets, such as China.” 

Gwynne Master, Managing Director, Trade and Working Capital at Lloyds, said, “The opening of the Enigio and TradeGo digital highway between Europe and China demonstrates the value of global collaboration, underlining the importance of interoperability to drive the adoption of digital trade. We look forward to completing the first live transaction, and to leveraging this highway to make transacting between the UK and China faster, simpler, and more sustainable for our clients.” 

 

 

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