The proposed transition from paper documents to digital documentation processes in the shipping sector has the potential to create significant carbon reductions, according to a report from Global Shipping Business Network (GSBN), which is a blockchain-based trade data exchange platform.
That’s important because while shipping remains more carbon-efficient than air transport, it still accounts for nearly 3% of greenhouse gas (GHG) emissions and international oversight bodies are seeking for the sector to achieve net zero by 2050.
As a means to move toward that goal, the report studied the impact of digitalized documentation processes including electronic Bills of Lading (eBL) and the use of paperless solutions during the cargo release process. Those steps would be contrast with the industry’s continued reliance on paper documents for legal and regulatory purposes, which adds to the industry's carbon footprint, according to the study, "Impact of Digitalization in Driving Decarbonization in Shipping,” which was commissioned by GSBN and conducted by global consulting firm Sia Partners.
According to GSBN, its global data infrastructure emerges as a good candidate to support interoperability and facilitate the transition to a digital ecosystem. Unlike blockchains such as the Bitcoin network, which rely on energy-intensive software “mining” programs to validate the data, GSBN says its blockchain infrastructure adopts a consensus algorithm which is more energy efficient, ensuring its carbon footprint is in line with sustainability goals.
The report found that:
- if carriers adopt eBLs by 2030, they would avoid printing an estimated 15.8 million paper bills issued annually, reducing carbon dioxide equivalent (CO2e) emissions by up to 440,820 metric tons.
- the potential CO2e reduction per electronic bill of lading (eBL) is about 27.9 kg approximately, and about 16.9 kg approximately for an electronic Delivery Order (eDO).
- in 2023, over 120,000 eBLs and more than 1 million shipments using GSBN’s Cargo Release solution contributed to an estimated CO2e reduction of up to 20,248 metric tons.
“Our study in collaboration with GSBN offers a clear case for digitization in the evolution of shipping efficiency, security, and decarbonization,” Maria Lee, Managing Director at Sia Partners, said in a release. “By embracing digital trade documentation such as eBLs and processes such as GSBN’s Cargo Release, not only can the industry cut GHG emissions, but also unlock greater speed, and efficiency and offer value to their customers.”
GSBN says the study is part of its ongoing efforts to support the industry’s decarbonization transition by partnering with organizations including Det Norske Veritas group (DNV), Global Centre for Maritime Decarbonisation (GCMD), and Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS).
