Bunge executes first ever CargoDocs Agri shipment under Letter of Credit into China
essDOCS customer Bunge recently executed the first ever CargoDocs Agri transaction under a Letter of Credit (LC) into China, marking a major milestone for the agribusiness and food company as it continues to expand digitization of its trade and trade finance processes.
The transaction involved a bulk cargo of Brazilian soybeans exported from Brazil to China, with a leading UK-headquartered bank acting as Advising bank on behalf of Bunge Asia, and a major Chinese bank acting as Issuing bank for the end receiver, one of Bunge’s crush facilities in China.
The electronic Bills of Lading (eB/Ls) were signed and issued by the Agents on behalf of the Owner to Bunge Alimentos, Brazil, in early March, who endorsed them directly to Bunge Asia. By using ePresentation under LC, the electronic documents were then presented to the Advising bank which, in turn, transferred them within the same day to the Issuing bank. The original eB/Ls were sent directly to the final buyer by the Issuing Bank – eliminating the time spent delivering the physical documents to the buyer – and thereafter to the disport Agents for vessel’s discharge. The use of electronic documents enabled the timely discharge of the cargo against original documents, eradicating the need for a discharge LOI.
Bunge’s digital trade practices provide the company with greater visibility and transparency, significantly reducing operational risk arising from manual document handling and delays related to discrepancies, enabling the company and its banks to increase performance and efficiency. By using electronic documents, Bunge benefits from valuable time-saving in multiple phases of the trade lifecycle.
Bunge embraced CargoDocs in early 2015, signing up to gradually rollout electronic Bills of Lading and ePresentation across its grain and oilseed trade routes worldwide. Today, the leading agribusiness and food company continues to expand digitizing processes across additional trade lanes, primarily focusing on ex-Americas to Europe and Asia Pacific flows.