digital docs

Royal assent for Electronic Trade Documents Bill

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.

solar panels

Survey confirms Metro’s strategy on environment

A survey by the British International Freight Association (BIFA) confirms that freight forwarders are coming under increasing pressure from customers to show evidence of decarbonisation, while those same customers need to get ready for carbon emission audits now.

The BIFA survey found that legislation compelling change in logistics decarbonisation will be a primary driver for respondents, with nearly a third citing client pressure as the leading motivator.

Results show 69% of respondents consider calculating emissions is part of their daily activities, yet 22% had assigned budgets of under £1,000 for green initiatives within their organisation. 

The conclusion is that there is growing awareness of environmental issues among the BIFA membership and, to some extent, a growing awareness of the need to measure carbon emissions and provide that information to clients.

It is also clear that it will be challenging to determine how they will use this data, and what they can actually do to reduce their carbon emissions. The general consensus is that significant changes will be required by forwarders, but what these will be are not clear at the moment.

The BIFA survey highlights just how far ahead Metro’s environmental strategy and actions are!

In consultation with customers Metro began development of our MVT ECO module in 2021. 

Today Metro is measuring and monitoring the emissions of every shipment, by every mode, for all of our customers, with offsetting alternatives, so they can work towards carbon neutrality in their global supply chain. 

As of 1st July 2023, MVT Eco has reported on 86,766 shipments, with a total CO2 equivalent of 279,864.58 tonnes.

Metro has committed to environmental transparency, using international sustainability reporting standards and through ISO 14001 accreditation, Metro has been fully offsetting emissions through verified carbon offsets.

Metro has been certified Carbon Neutral for two years.

The Corporate Sustainability Reporting Directive (CSRD) that becomes effective from 2024 will extend a company’s obligation to report on sustainability issues, to stimulate the EU’s transition to a sustainable economy.

However, it is likely to cause headaches for companies needing to report on Scope 3 emissions, which are outside their immediate control and brings reporting on emissions to the same level as financial auditing.

Scope 1 emissions are produced directly by companies, while Scope 2 is mainly from energy that is bought in and Scope 3 accounts for all other indirect emissions, the majority of which are in the supply chain. 

Scope 3 emissions account for the most – typically 10 times those of Scope 1 and 2 combined – and they are the hardest to measure, requiring a reliable, automated way to collect data and analyse it against targets.

UK companies operating in the EU will need to report Scope 3 emissions in CSRD and while reporting is currently voluntary in the UK, it will inevitably become mandatory.

MVT Eco uses reporting methodology that is in conformance with the Global Logistics Emissions Council (GLEC) and incorporates 30 pre-built charts and downloadable statements, to simplify Scope 3 reporting compliance for customers in the EU and UK.

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.

ECO globe

Sustainability is good business

As the effects of climate change intensify, the pressure on the food sector will increase over the coming decades, which is encapsulated by the FDF’s environmental ambition in creating a more sustainable food system. 

Supply chain issues, labour shortages, threats to energy security and rising inflation have added a new set of challenges for the food and drink industry over the last 12 months, however despite these obstacles, FDF members remain focused on their ambition to reach Net Zero by 2040 – a decade earlier than government targets.

The oft-quoted Forbes survey found that 82% of consumers want brands to practice sustainability and while some cracks have crept into the sustainability narrative as the cost of living crisis bites, the global pandemic and recent environmental disasters have maintained demand for sustainable practices and products.

Sustainability is good for business; it builds brand value, meets consumer expectations, attracts talent and creates new opportunities, but only if you communicate your efforts credibly, and avoid being perceived as greenwashing.

According to NielsenIQ survey data, 46% of consumers still expect brands to take the lead on bringing about sustainable change, which means that brands can no longer greenwash themselves. 

Packaging and last-mile delivery are primary sources of emissions with 53% of US and UK consumers wanting brands to produce less packaging and an average of 25% willing to pay a surcharge for eco-friendly delivery.

Manufacturers, producers, brands and retailers are already rethinking their practices, to find sustainable solutions, including the adoption of eco-friendly packaging, more climate-friendly shipping options, optimised waste management and completely eliminating packaging waste.

Despite today’s economic uncertainty, consumers are still open to sustainable products if they are affordable and offer value, which is why effective implementation and communication of these initiatives is critical.

Metro can help shippers switch to sustainable packaging for their products, by sourcing sustainable and ecological packaging materials, while our freight centres use renewable materials, which reduce packaging waste to a minimum.

Through our MVT ECO initiative, Metro is measuring and monitoring the emissions of every shipment, by every mode, for all of our customers, with offsetting alternatives, so they can work towards carbon neutrality in their global supply chain. 

CO2 emissions caused by transport are calculated according to EN 16258 to provide data and reporting that complies with the most demanding frameworks and methodologies. 

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

food visibility

Visibility in the food supply chain

For many importers, the underlying problem that prevented them from pivoting their supply chain as the pandemic’s impact became more pervasive was lack of visibility and control upstream. 

The food supply chain has stabilised since the pandemic, but new macro events continue to create disruption, including the war in Ukraine and the cost of living crisis and where there is a lack of visibility, it prevents the timely, proactive action that optimises operations in the face of disruption.

Participants across the food and drink sector still need that greater transparency and control, to ensure an effective, resilient and flexible supply chain is available, whatever challenges arise.

End-to-end visibility removes uncertainty in the supply chain, by providing the wider business with a view of inventory supply upstream and when they can expect to receive particular product batches. 

With clearer visibility and transparency between production, shipping, storage and distribution, it is easier to anticipate any supply shortages or delays, so they can immediately overcome the issue, or update the business, so that alternative sources may be accessed and implications for customers avoided. 

Delivering visibility in the food supply chain

This importer of food products and raw materials is a major international manufacturer of branded grocery products, that includes many market-leading household names and consequently has a vast integrated global supply chain, with many layers of complexity.

The supply chain visibility solution that has been developed for them by Metro comprises seven core functions, and a users portal with dashboard, which provides a real-time view of the entire supply chain, together with drill down options for each of the seven functions.

  • POMs (Purchase Order management)
    • We receive a feed of PO/SKU data, with suppliers confirming quantities, dates and place a booking at origin. Tolerances are set and approvals required for anything outside of certain dates or other values.
  • EBSA (E-booking space and allocation)
    • Vessels bookings are allocated to POs and carrier contracts.
  • Track and Trace with AI powered ETA
    • SKU level tracking with market leading predicted dates. Vessel AIS images and automated delay logging - with reasons.
  • Report centre
    • Key KPI reports such as average days a container is at port, transit and delivery times within SLA agreement, bookings per week by carrier split.
    • Bespoke reports also built around financial reporting and inbound forecasting.
  • DCM – Distribution centre management for 3rd party DCs
    • The DCM has been tailored to their requirements and includes integration with Port Health. Container landing, customs clearance, and released for collection are timed, so client can specify containers for priority, or ‘drill in’ to see the SKUs inside and prioritise collection accordingly.
  • My Notifications
    • Client is closely monitoring inbound vessel movements based around a strict tolerance.
  • MVT Eco
    • ECO tool measures emissions and GHG output, by individual shipment, within their supply chain.

EMAIL Simon George, Technical Solutions Director, to learn more.