The Problems and Possibilities for Using Electronic Bills of Lading as Collateral

Abstract

Recent developments pose an important question: do we still need the negotiable electronic bill of lading, and if so, how should it be created? In this article, I argue that nonnegotiable transport documents, such as sea waybills, cannot entirely displace the negotiable bill of lading, and therefore, enactment of electronic bills of lading laws is desirable. Previous attempts to create an electronic bill of lading posed many issues, such as the questionable status of secured creditors, acceptability under letters of credit, transparency, and high costs for users. Recent developments in the area of secured transactions may, however, inspire confidence of merchants in this type of electronic document.

Keywords: electronic bill of lading, Bolero, collateral, security interest