The Global Shipping Business Network (GSBN) has signed a memorandum of understanding (MoU) with the Bank of China Hong Kong (BOCHK) to promote the digital transformation of maritime supply chains.
The collaboration, a joint statement read, will help streamline trade finance processes and increase transactional security. In signing the MoU, the BOCHK has become the first financial institution to partner with GSBN in its goal to digitally transform supply chains.
Through the collaboration, BOCHK can obtain relevant cargo information directly from GSBN members based on the shipping document serial number and authorisation provided by corporate customers when they submitted trade finance applications.
This will help to eliminate the need for paper cargo receipts, increasing the efficiency of trade finance authentication checks and lowering customers’ management costs.
During the initial phase of collaboration, BOCHK has successfully completed pilot transactions with two founding members of GSBN, namely COSCO SHIPPING LINES and OOCL, proving the benefits of incorporating real-time shipping information in trade finance.
Teng Linhui, General Manager, Transaction Banking Department, BOCHK, said the company is committed to “strengthening its cooperation with the shipping industry” and aims to “accelerate process optimisation, information transmission and service innovation between the finance and shipping industry”.
“All these will enhance operational efficiency of supply chains and promote the development of international trade.
“As GSBN’s founding members are international key players and participants in the shipping industry, the collaboration enables BOCHK to build a secure and trusted supply chain finance ecosystem with its partners in the shipping industry.
“Going forward, both parties will work together to explore different scenarios and models and bring about integration of trade finance and shipping logistics, the two important elements in supply chains, in order to promote trade facilitation and create value for customers.”
Bertrand Chen, CEO, GSBN, said the collaboration will facilitate the sharing of data to streamline operations, improve the user experience and create value for all stakeholders in the supply chain.
“We are here to simplify trade for all. The collaboration with the BOCHK aims to extend this digital transformation beyond logistics service providers to financial institutions.”