Paper to port: How Bills of Lading Bill signals India's next shipping logistics leap

India Today

7 hours ago

In a largely empty House, amidst the din of a post-lunch Opposition walkout on July 21, the Rajya Sabha quietly passed a piece of legislation that could transform India's maritime logistics and global trade flows. The Bills of Lading Bill, 2025, which replaces the archaic 169-year-old Indian Bills of Lading Act of 1856, might lack the dramatic political appeal but its implications could ripple far deeper than most realise.The bill was cleared by the Lok Sabha during the budget session in March and will now go for the president's assent before becoming a law.advertisementAt its heart, the new legislation aims to modernise how India handles the most fundamental document in global shipping—the bill of lading (BoL). For centuries, this humble document, often printed on crisp bonded paper, has served as the holy trinity of international commerce: a receipt of goods, a contract of carriage and, most crucially, a document of title. Whoever held it—physically—owned the cargo. Until now.The Bills of Lading Bill legally recognises electronic bills of lading, enabling shipping lines, freight forwarders, banks and importers/exporters to digitally issue, endorse and transfer BoLs. In essence, it does to international cargo what the Unified Payments Interface (UPI) did to money: it removes the friction of physical presence and accelerates trust through secure digital systems.
The bill's passage comes not a moment too soon. India is working aggressively to reduce logistics costs, currently hovering around 13-14 per cent of the GDP, well above global averages. If the country is to become a serious node in resilient global supply chains, it must offer more than cheap labour and tax incentives. It must offer speed, predictability and interoperability. And that's where the BoL reform matters.Shipping experts have long flagged the use of physical BoLs as a bottleneck in India's export value chain. When a container travels faster than the paper that certifies its ownership, cargo sits idle at ports, buyers incur demurrage, and insurers pull their hair out over liability gaps. In many cases, the absence or delay of BoLs forces importers to issue Letters of Indemnity (LoIs), exposing banks and businesses to legal and financial risk. These frictions aren't just technical—they're economic handbrakes.The government has finally responded with an overhaul backed by international best practices. The new law aligns with the UNCITRAL Model Law on Electronic Transferable Records (MLETR)—a global framework adopted by countries such as Singapore, the UK and Bahrain to facilitate legally valid electronic documents in trade and shipping. It also syncs with India's broader Gati Shakti logistics platform, the National Logistics Policy and digital trade initiatives such as the Unified Logistics Interface Platform (ULIP).'This bill is not a procedural tweak—it's a statement of intent,' said a senior official in the shipping ministry. 'We are signalling to the world that India will no longer be held back by 19th-century processes for 21st-century trade.'Data from the Digital Container Shipping Association (DCSA) suggests that global adoption of electronic BoLs could save over $4 billion annually, not to mention the environmental savings from reduced paper, courier transport and redundant handling. Indian shippers stand to gain even more, especially in time-sensitive sectors such as textiles, pharmaceuticals and perishables, where even a 24-hour delay can mean loss of market or spoilage of goods.advertisementThe private sector has been cautiously optimistic. Platforms such as TradeLens (a now-defunct Maersk-IBM venture), CargoX and Bolero have already rolled out blockchain-based BoL solutions, but without a domestic legal framework, adoption in India remained stunted. With this law now passed, digital BoLs can be issued with legal confidence, negotiability and enforceability within Indian courts and regulatory systems.Yet, challenges remain. Critics such as Biju Janata Dal MP Niranjan Bishi raised concerns in the Rajya Sabha that loosening title transfer protocols without airtight cybersecurity could lead to fraud, data leaks or forged documents. Moreover, the real test will lie not in the law's text but its implementation. India's port systems remain unevenly digitised; many freight forwarders are small, informal operators who lack the tech backbone to adopt eBoLs overnight. Customs, excise and judicial authorities will also need training and updated protocols to recognise and process digital documents in disputes or enforcement cases.advertisementThere's also the international angle. For digital BoLs to be truly frictionless, cross-border recognition is essential. If Indian exporters are sending goods to countries that don't yet legally recognise eBoLs, or demand physical documents for banking, the full benefits of the new law may remain unrealised. Much like the journey of UPI's internationalisation, this too will require careful diplomatic and trade coordination.Nonetheless, the government's strategy seems clear. By pushing through the Bill now—despite the Opposition walkout and with minimal fanfare—it is laying the plumbing for India's emergence as a digitally savvy, high-efficiency trading power. With 90 per cent of India's trade by volume moving via sea, the digitisation of maritime paperwork could bring about a silent revolution in how India trades, settles disputes and scales its global presence.Some might dismiss the bill as a technical upgrade. But in the complex chessboard of global trade, even small moves—when executed well—can change the game. The Bills of Lading Bill, 2025 is one such move. Now, it's up to the shipping lines, exporters, fintech platforms and customs authorities to make the most of it.Subscribe to India Today Magazine- Ends
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