On 20 July 2023, the UK enacted an important new law that promises to transform the way international trade is conducted electronically. The Electronic Trade Document Act 2023 means that businesses that rely on English law are now legally permitted to exchange bills of lading and other trade documents electronically.
Although it is a relatively minor change in the law, it is likely to have a significant impact on the way maritime trade is conducted. International shipping relies heavily on English law as the governing law for charter parties and other maritime agreements. This is also true for bills of lading where it is estimated that 80-90% of all bulk shipping bills are governed by English law. So, the impact of this new legislation will extend beyond the UK’s shores to embrace the global trade ecosystem. It is an extremely important milestone for trade digitalisation and supports similar initiatives to adopt electronic trade document laws in other countries, such as Singapore.