ABSTRACT

As discussed above, the paper bill of lading performs three functions – it is evidence of the contract of carriage between the shipper and the carrier, it acts as a receipt for the cargo received for shipment, and it is a negotiable document of title to the goods shipped. If EDI were to replace the paper bill of lading, the electronic bill of lading must be capable of performing these three functions.44 Replicating the ‘receipt’ and ‘evidence of the contract of carriage’ functions would not be a problem. So long as the electronic message contains information acknowledging receipt of the goods and the contract of carriage, then the message satisfies the ‘receipt’ and ‘evidence of contract’ functions of a bill of lading.45 As noted by the UNCITRAL Working Group on Electronic Commerce, the ‘receipt’ and ‘evidence of contract’ functions can easily be performed by EDI as it is simply a transmission of information from carrier to shipper, and the UN/EDIFACT46 message IFTMCS47 can be used for this purpose.48 The fact that EDI has been successful in replacing the sea waybill is evidence that the ‘receipt’ and ‘evidence of contract’ functions of the paper bill of lading poses no difficulty.