ABSTRACT
The paper bill of lading is used extensively in the maritime trade. It performs three functions. It is evidence of the contract of carriage between the shipper and the carrier, it acts as a receipt for goods received, and it is a document of title. It is the bill of lading’s function as a document of title that makes it such a useful document. First, the holder of a bill of lading can sell the goods in question simply by negotiating the bill of lading to another person, even whilst the goods are still in transit. Secondly, the bill of lading can act as a security in letter of credit transactions. However, in this day and age, the use of traditional paper bills of lading brings with it many disadvantages. The bill of lading now travels much more slowly than the ships on which the goods are being carried. The consequence is that the goods arrive at the port of discharge long before the paper bill of lading. This delay in the arrival of the bill of lading causes port congestion, demurrage costs, and poor turnaround of ships in ports. Another disadvantage is the high costs incurred from generating and processing paper documents. Thus, the shipping community is now looking at ways to replace the paper bill of lading. One option is to replace the bill of lading with a sea waybill. The other option is to use Electronic Data Interchange (EDI). EDI is emerging as the new way of communicating business information. It provides an alternative medium that is faster, more efficient and more convenient. Already, some industries, such as banks, are switching to EDI. Even the paper sea waybill has, in some areas, been replaced by an electronic sea waybill.
