In a ground-breaking stride, an international consortium, comprised of key industry and technical leaders, and bolstered by the support of government, business and other major organisations, has announced the successful execution of the world's first entirely digitalised cross-border movement of goods.
This monumental step, geared towards transforming global trade to be more cost-effective, efficient, resilient and environmentally conscious, is built on the foundation set by the UK Electronic Trade Documents Act (ETDA) which came into force on 20 September 2023.
Facilitated by the British Chamber of Commerce in Singapore (Britcham) representing British businesses in Singapore, this pilot initiative stands as a testament to the ambitions of the UK-Southeast Asia Trade Digitalisation Pilot’s through a collaboration of organisations in both countries. What made this shipment remarkable was the utilisation of electronic trade documents and fully digital logistics documents, all of which were captured on an enterprise-grade permissioned distributed ledger technology (DLT) platform, across both jurisdictions.
Taking the baton at different stages of this historic transfer were Singapore Airlines,NG Transport, Woodland Group, BT Rune and EES Freight Services. The entire process was paperless, leveraging the robust capabilities of the LogChain platform. Notably, LogChain's platform, aligned with the UNCITRAL's Model Law on Electronic Transferable Records (MLETR) that enabled a flawless transition, indorsement, and verification of document, transfers across the diverse digital platforms employed by the involved parties. This promotes policy coherence and harmonising digital trading standards without causing hindrance to other parties involved in the transaction.
At the origin of the shipment was Fort Vale, a frontrunner in the design and production of valves and fittings essential for the chemical logistics domain. These components play a pivotal role in enhancing the esteemed manufacturing industry of Singapore.
Until this remarkable endeavour, only specific facets of supply chains enjoyed the benefits of digitalisation. However, with the UK’s ETDA endorsement, the notion of complete digitalisation in the movement of goods has transformed from a mere aspiration to reality. This act, which was instituted via the Law Commission Special Procedure, has ushered in a new era by offering electronic trade documents the same legal recognition as traditional paper documents, all without enforcing a complete shift.
Such advancements hold notable significance as trade documents under English jurisdiction dominate global trade. The International Chamber of Commerce (ICC) has reported that approximately 80% of worldwide trade documents are anchored in English law(1).
The demonstrable advantages of this moment are considerable with the following efficiencies delivered in this shipment:
- Reduction in paperwork >85%(2)
- Reduction in logistics processing time >89%
These efforts from the private sector were made possible by, and delivered upon, the progressive trade agreements recently made between the UK and Singapore governments for the betterment of both countries including; UK-Singapore Digital Economy Agreement, UK-Singapore Free Trade Agreement, and the Green Economy Framework.