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What are the Advantages of Electronic Bills of Lading for Sea, Land and Air Transportation

Electronic Bill of Lading for Sea, Land and Air Transport by Basenton Logistics

An electronic bill of lading is a procedure for transferring control of goods en route by sea using the EDI system. EDI (Electronic Data Interchange) is electronic data interchange system information, referred to as EDI system, is a special communication project that uses computer networking facilities to exchange information through special passwords and notify the transfer of control over goods.

Three characteristics of electronic bill of lading:

(1) The seller, the consignor, the bank, the buyer and the harvester all take the carrier (or ship) as the center, and notify the transfer time and object of the right to control the goods in transit by transferring the computer password.

(2) In the process of completing the transportation of the goods, usually no written documents appear. (3) When the consignee picks up the goods, he only needs to show a valid certificate to prove his identity, and the shipping agent can state it.

Advantages of electronic bill of lading:

(1) The transfer of the right to control the goods can be realized quickly and accurately.

(2) It is convenient to use the sea waybill. Especially when the sea transportation voyage is short, it can completely avoid the situation that the ship arrives and the bill of lading has not been sent due to the traditional bill of lading.

(3) It can prevent false claim and avoid miscommunication. 

The use of electronic bills of lading

(1) The seller makes a booking with the carrier, and the carrier confirms it. Confirmation should include terms that both parties agree to.

(2) The buyer provides a detailed description of the goods, the carrier confirms whether to carry the goods, and the buyer indicates the bank of the letter of credit to the carrier at the same time.


(3) The seller handed over the goods to the carrier, and the carrier sent the seller a telecommunication that received the goods and could make some reservations at the same time. At this point, the seller is still legally in control of the shipment.


(4) After the carrier loads the goods, it not only informs the seller but also the bank.


(5) The seller can withdraw the money with the letter of credit. After the seller withdraws the money, the right to control the goods in this order is transferred from the buyer to the bank. The seller informs the carrier of the transfer of the right to the goods, and the carrier destroys the communication with the seller. password and confirm with the bank. The bank gets a new password from the carrier. At this point, the seller’s liability does not end legally.


(6) The seller tells the bank who is the buyer.


(7) After the buyer pays the payment for the goods and obtains the right to control the goods, the bank will notify the carrier of the transfer of the rights of the goods. The carrier destroys the password with the bank, confirms to the seller that it controls the goods, and gives the seller a new password.


(8) After the ship arrives at the port of destination, the carrier informs the buyer. The buyer is obliged to designate a consignee, otherwise, the buyer is regarded as the consignee in law.


(9) The consignee notifies the carrier after the consignee actually accepts the goods, and the seller’s right to control the goods is terminated. At this point, the carrier destroys the password with the buyer. 

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