Practicability of successfully achieving a paperless sea trade: electronic vs paper Bills of Lading.
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Date
2018
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Abstract
Increase in electronic commerce create challenges to the use of the existing laws and
the traditional modes of concluding contracts, including the use of paper bills of lading.
As a result, this induces a need for the shipping industry to conform to international
trade by adopting electronic trading tools such as electronic bill of lading and do away
with paper based bill of lading.
The purpose of this study is to examine the feasibility in replacing the paper bill of
lading with an electronic bill of lading. In addition, whether the paper bills of lading
functions, particularly that of transfer of ownership can be adequately replicated in an
electronic bill of lading. In addition, the study will address the lack of adequate
regulatory regimes and look at whether the Rotterdam Rules satisfactorily address
issues associated with the use of electronic bills of lading. Finally, an evaluation of
whether Africa is ready to deal with paperless sea trade or it is only the developed
states which are ready.
This thesis is based on a qualitative approach as opposed to quantitative approach.
As such it will involve a desktop review, analysis and critical evaluation of various legal
materials. Both primary and secondary legal authorities will be explored to provide the
nature, developments and feasibility of the electronic bills of lading.
The findings are that the existing legislations only recognises paper bills of lading. As
a result, merchants are reluctant to switch to electronic bills of lading for many reasons
including security. Further, that successfully achieving a paperless sea trade depends
on well drafted rules and regulations; its continuous existence and use greatly
depends on the shippers.
To address and overcome the challenges preventing the use of electronic commerce,
Electronic Bills of Lading, legislations should be enacted. These legislations should
incorporate, amongst other things, provisions affording electronic bills of lading the
same status as that of the paper bills of lading. That the Rotterdam Rules should be
amended in accordance to accommodate all the party’s needs. Lastly, that there must
be ways of ensuring secure electronic trading to eliminate the element of fraud.
Description
Masters Degree. University of KwaZulu-Natal, Durban.