Shipping's Future Is Paperless and Digital: So What's Holding Us Back?

Recently, I shared an article called The Cost of NOT doing eBL (and other digital docs) . After reviewing the comments (thank you all for your input by the way!), I noticed a repeating theme: The benefits are clear, so why is adoption so slow?

A recent poll I posted on LinkedIn suggested that the perceived status of adoption is 34% — just a 3% increase on 31% from the same poll I posted two years ago. It seems like most see the benefits of eBL and digital documentation, so what’s holding us back??

There are obviously some practical and technical reasons that can slow adoption, but there are also perceptions and beliefs which can slow down adoption. These can be addressed through communication and change management. How we talk about it makes a huge difference in speeding up adoption.

Conversation accelerates transformation. The more we talk about it, the more we put it on the radar and the harder it is to ignore. But how exactly do we talk about it?

By understanding some of the most common objections, we can better work out how to overcome them through communication. Here are a few I’ve encountered.

Lack of understanding: the future of all documentation will be digital

In my conversations, I often hear comments that eBL is a ‘product’ pushed by carriers. The truth is that eBL is the first step in an industry-wide transition toward the digitalisation of all trade documentation.

While we focus on the eBL, it’s important to remember that the eBL is the beginning of a larger transition. The future will be digital, yet in 2024 a large percentage of shipping trade documentation is still paper-based.

As 80% of global cargo is shipped by sea— everything from food, fuel, clothing, medicine and all manner of consumer goods—the world depends on shipping, and at present, shipping still depends on paper.?

But paper is not suitable for the increasingly digital, data-centric world we live in. Its lack of visibility, accessibility, and data is not compatible with the direction the world is heading.

A digital-first world needs a digital-first shipping industry to support it. While each stakeholder has their own priorities, we have a responsibility as a collective to ensure the industry can support the world it serves.

Cost and ROI: taking a broader and longer-term view?

When looking at the cost and ROI of eBL, the total cost of paper often isn’t considered.?

Procurement, for example, may look at a $10 transaction cost, but not factor in the $100+ for couriering paper documents, the cost of lost, damaged or delayed documents or the cost of fraud or forgery. Not to mention the labour, lead time, storage, and printing costs. Any cost and ROI conversation needs to consider the total cost of paper.

Some organisations typically have better visibility of this total cost, which often means they are earlier to adopt. While others can be more siloed and have more entrenched systems and processes, which increases the perceived cost and difficulty of changing.

When talking about eBL and digital trade docs, it’s important we take a broader and longer-term view.

Viewed through the short-term lens only, eBL adoption can seem like more effort than it’s worth. But when we consider the long term, the picture is very different. Over time, the efficiency, ease, security and visibility of digital pays dividends. Data is the currency of today’s digital world and adoption of standards remains a crucial step to propel this forward. But with a solid foundation of standardised data, the increased access to information and the future ecosystems which will develop from it can yield even more upsides. When we acknowledge that the future is digital, it makes sense to adopt as soon as possible.

Conversations around the ROI have to be seen from a broader (total cost of paper) and longer term perspective (first-mover advantage, long-term efficiency gains). A shift in perspective can make all the difference.

A lack of urgency: we can’t wait until everything is perfect

A common objection to eBL is “even if I use eBL, other documents are still paper based so what’s the point?”

It reminds me of the saying “How do you eat an elephant? Piece by piece”. We can’t expect it to happen all at once. If adoption of the eBL—the most important document in shipping— remains low, why would we expect other docs to be digitalised?

The whole ecosystem does not emerge at once, it takes time and it takes consistent progress. In aviation, e-tickets weren’t on the phone immediately. It went through a consistent process of incremental improvement before we arrived where we are today.

If everyone waits for everyone else then nothing happens. Adoption itself is what accelerates progress (or another pandemic...). The sooner we take action, the sooner we get to the end goal.

Do you agree? What common objections do you see? How should we talk about eBL and digital trade to accelerate adoption?

Let me know in the comments below.