digital docs

Royal assent for Electronic Trade Documents Bill

Aug 3, 2023 | , , ,

Exactly two weeks ago the Electronic Trade Documents Act 2023 (The Act) received Royal Assent from King Charles III and will come into effect on the 20th September 2023. It sets out the basis upon which trade documents can exist and be dealt with in electronic form, such that an electronic trade document has the same effect as an equivalent paper trade document.

The Act paves the way for a significant shift in international trade. It states that a person may possess, endorse and part with possession of an electronic trade document, and anything done in relation to an electronic trade document has the same effect in relation to the document as it would have in relation to an equivalent paper trade document.

The International Chamber of Commerce has estimated that digitalising trade documents could generate £25 billion in new economic growth by 2024, and free up £224 billion in efficiency savings.

Prior to the Act, under English law it was not possible to possess electronic trade documents and therefore key English law principles in relation to documentary intangibles (such as bills of exchange) could not be applied to electronic forms of those documents.

The Act also amends the Bills of Exchange Act 1882 and the Carriage of Goods by Sea Act 1992 to remove certain incompatible provisions and means that businesses can now exchange trade documents electronically, such as bills of exchange, bills of lading, waybills, and insurance certificates.

The Act speeds up trade transactions and removes the need for paper documents in many cases. It also addresses transferability issues by permitting the legal concept of ‘possession’ to apply to an electronic document. 

The transfer of documents of title, which can take days, could now happen in moments, but the UK is the first G7 country to pass this capability into law, so the government must now take the lead in building the systems and getting the digital economy agreements in place with the rest of the world. 

The United States and Germany, have legislation enabling the use of most transferable documents already in place, while France is not far behind and Japan is exploring digital bills of lading and already possesses laws for digital promissory notes.

The UK’s move is likely to encourage similar shifts elsewhere. Already, there is talk of comparable bills in other jurisdictions, which may act as a catalyst, prompting a domino effect in other countries. 

The Act does not outline specific requirements for an electronic trade document system, which allows for the development of industry standards for such systems, such as the Digital Container Shipping Association (DCSA)’s e-bill of lading, the ICC’s Digital Standards Initiative (DSI), and the Future International Trade (“FIT”) Alliance. 

The Act will be transformative to trade and trade finance processes, but in the short-term users of trade documents and finance providers will need to deploy "reliable systems”, get comfortable with the risks associated with them and prepare for governments in other key jurisdictions to adopt similar legislation. 

Metro is leading the industry in developing the technologies and platforms that integrate with critical trade documents, including electronic bills of lading (eBL).

We have a seat at the UN/CEFACT forum and are members of the bodies that agree the standards and frameworks for standardised industry e-bill of lading and critical documents.

Please EMAIL Andrew Smith, CCO, now for further Information on our digital capability and how this can benefit your own continued global trade growth ambitions.

Award 1

Service more important than assets

Jul 4, 2023 |

Despite continuous efforts by air and sea carriers to increase direct shipper relationships beyond the largest volume (BCO) contracts, freight forwarders still control the vast majority of air freight and last month NVO’s like Metro handled over half of FCL’s sailing from Asia, suggesting that importers are prioritising service over assets.

The COVID19 pandemic and the disruption it generated throughout sea freight supply chains bought into focus the issues that really matter to shippers, because price is irrelevant if there is no reliability or consistency of service.

Using a shipping line and even the largest carrier, that control ships, trucks, warehouses and other assets was no guarantee that  cargo would be lifted, or shipped, with even the biggest volume shippers having their containers rolled and contracted space allocations ignored.

Given the critical importance of their supply chains, shippers are typically adept at selecting the right solutions for their needs, when they focus on solutions and service capability above assets and Metro’s sole focus is providing consistently high-quality solutions with proprietary technology and embedded service culture.

We leverage the outstanding relationships we have built with all the leading air and sea carriers over 40+ years and shippers’ appreciation of the value that NVO’s like us can bring is growing, with the percentage of Asia import trade handled by NVOs versus direct shipper-carrier contracts increasing to 54%, an uptick of 8% in two years. 

Cash-rich after the pandemic’s sky-high freight rates, carriers have been extending capabilities from their core asset-based position, but freight industry history is replete with attempts by shipping lines to extend operations up-stream and down-stream, usually with little or no success.

We negotiate long-term volume and price contracts with airlines and shipping lines across all three alliances to secure space and rates, for the widest selection of NVO services.

EMAIL our Chief Commercial Officer, Andy Smith to learn about our NVO solutions, customer commitment and supply chain technology.

Multimodal 2023

Metro at Multimodal 2023

Jun 21, 2023 |

The UK freight industry’s only dedicated conference and exhibition – Multimodal – returned to Birmingham’s NEC centre last week and, being the largest forwarder in the neighbourhood, we popped in to catch the industry gossip and meet up with customers, partners and suppliers in the hall. 

We are big advocates of Multimodal, in showcasing our industry, and really value the work that Robert Jervis and his team have down over the years to make Multimodal the juggernaut of an event that it has become!

While we may not always have the opportunity to exhibit at Multimodal, we are happy to provide expert speakers, support key partners like our industry association BIFA and participate in the Multimodal Awards, which have become a regular diary event.

And with the NEC literally around the corner, our team are encouraged to visit the show, to develop their industry knowledge and meet key contacts.

After several years of sky-high profits and basement-level service it was probably not surprising to see so many ocean and air carriers exhibiting, in an effort to promote a more customer-friendly and conciliatory image.

Perhaps understandably, many shippers and forwarders, having endured poor communication and woeful service levels over the last two years, simply wanted to ‘vent their spleen’ at the carriers’ representatives. 

From our perspective, the carriers' presence presented the ideal opportunity to reinforce the personal relationships and shared understanding, that build the foundation for a better  commercial understanding and can get so many positive things done - behind the scenes.

We were particularly pleased to see the exhibiting premiere of our group shipping line, Ellerman City Liners, who were promoting their new Express Europe - USA service, which, judging by the crowds on the stand, was very well received.

Founded over 120 years ago, Ellerman’s heritage is steeped in British maritime history, with its substantial merchant fleet providing a massive contribution to the country in peacetime and during both World Wars.

It is with immense pride that we see this sleeping giant bought back to life, as part of our group of companies and wonderful to see our colleagues so warmly received in Birmingham; home of Multimodal and Metro.

To discuss any of the issues raised in this article please EMAIL Andrew Smith, Chief Commercial Officer.

solar panels

Delivering the sustainable future, today

Jun 21, 2023 | , , ,

Alongside customers in key verticals, including food, drink, cars and commercial vehicles, Metro is committed to the highest environmental standards, by maintaining carbon neutrality, investing in alternative fuels and supporting our customers with technology-enabled sustainable supply chains.

The global food system will face significant  pressures over the medium term as demand for resources and the effects of climate change intensify, which is why the sector is fully committed to cutting CO2 emissions, embedding environmental standards in transport and increasing sustainable supply chains.

Despite the challenges that 2022 brought, including supply chain issues, labour shortages and threats to energy security, our food and drink customers remain focused on sustainable, resilient, and responsible supply chains, with an ambition to reach Net Zero by 2040 – a decade earlier than government targets.

The automotive sector continues to improve its sustainability, reducing energy use, sourcing more responsibly and increasing recycling. Indeed, total energy use has declined, by -6.1% on last year, and water use per vehicle fell -6.3%. Waste to landfill also hit a record low, of 0.6%, with 17 leading companies reporting zero waste.

Supply chains need to become more sustainable but you can’t change what you can’t see and experts at Automotive Logistics’ supply chain events agreed that better tools and partnerships are needed to identify emissions in complex supply chains, as a means to start reducing them, because what you can’t measure, you can’t work on.

Hot on the heals of our industry investment in Sustainable Air Fuel (SAF) and the Sustainable Flight Challenge, Metro has invested in solar panels at our UKHQ to move beyond our net zero achievement, toward Climate Positive and joined the Midlands Net Zero Hub, to share the region's vision to decarbonise and support key priorities for the Midlands.

With Metro’s MVT Eco module, all the CO2 measuring and emission analysis tools our customers need can be found in one single place. Eco calculations conform to EN 16258, to provide data and reporting that complies with the most demanding frameworks and methodologies.

Our ‘on demand calculator’ module means that shippers can predict CO2 impact, by any mode and location, based on IATA or UNLOC codes and use those insights to create efficient, low-carbon supply chain solutions.

Using our latest generation MVT Eco module, we develop intelligent supply chain solutions, based on accurate and representative data, that are respectful of the environment. 

Low-carbon multi-modal solutions that blend air, road, sea, inland waterways and rail, together with NGV and electric vehicles.

The MVT ECO module is available free-of-charge to customers on their MVT dashboard. To request a demo or discuss your requirements, please EMAIL Simon George.

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