London, 14 October, 2016 — Attached is Marsh’s latest report, “Switching From Paper to Electronic Bills of Lading”, which looks at bills of lading (BOL) fraud in the maritime and marine industries.
The report covers:
· How, as paper-based BOLs are replaced by electronic bills of lading (eBOL) to evidence receipt, contract of carriage and title, new cyber risks are being created which are not traditionally covered by marine insurance.
· How the lack of universal acceptance of eBOLs across international markets could result in trading disputes and litigation in the event of fraud.
· How, even though under the United Nations’ ‘Rotterdam Rules’, eBOLs are now considered legally equivalent to paper BOLs, only three of 20 countries have so far ratified the Convention.
· Marsh’s recommendations, including heightened cyber awareness and the adoption of eBOL clauses for P&I clubs and their members under charterparty agreements.
Gordon Street, Marine Claims Leader, Marsh, said: “While eBOLs are a more secure method of trade, no single solution can claim 100% invulnerability. In order to avoid the pitfalls associated with eBOLs, maritime and marine insurance practitioners should identify their eBOL exposures and align them with their existing risk management strategies.”