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India Today
19 hours ago
- Business
- India Today
Paper to port: How Bills of Lading Bill signals India's next shipping logistics leap
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 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 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 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 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 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 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 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 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 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 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 to India Today Magazine- Ends advertisement
Time of India
a day ago
- Business
- Time of India
Bills Of Lading 2025: Rajya Sabha Passes Landmark 'Bills of Lading, 2025'; Set for Presidential AssentETInfra
Advt Minister's remarks in Parliament Key provisions of the bill By , ETInfra Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. On the first day of the Monsoon Session, the Rajya Sabha passed the 'Bills of Lading, 2025' bill, clearing the way for it to become law pending Presidential assent . The legislation, already cleared by the Lok Sabha, was tabled in the Upper House by Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal The bill seeks to repeal and replace the Indian Bills of Lading Act , 1856, introducing a revised legal framework for shipping documentation . According to the government, the legislation updates legal definitions and provisions to bring India in line with current international the bill, Sarbananda Sonowal said, 'This vision is not merely aspirational; it is a call to action, urging us to align our efforts and aspirations with the promise of a new and prosperous Bharat. In the words of the Hon'ble Prime Minister, 'India must act with speed and scale to reform its systems and transform its future'.'Sonowal further said, 'Today, as we reflect on the 76th year since the adoption of the Indian Constitution , it is the perfect moment to cast aside the remnants of colonial and pre-constitutional legacies that hinder our progress. 'Swarnim Bharat' needs a statute that is contemporary, crafted by our own people, and capable of addressing the challenges of the modern era.'The new law updates the terminology and framework used in shipping documentation in India. It outlines the rights and obligations of carriers, shippers, and lawful legislation also includes a clause allowing the central government to issue directions for implementation, and a standard repeal and saving clause to ensure the continuity of past actions under the previous calling for support in the House, said, ''The Bills of Lading, 2025' bill reflects our constitutional values and marks a vital step in replacing outdated colonial laws with a modern, accessible framework. As our maritime sector expands rapidly, this reform will boost ease of doing business , reduce disputes, and strengthen India's global trade standing. As the saying goes — 'Whoever rules the waves, rules the world' — it's time India leads from the front.'
