International Group recognises CargoDocs™, essDOCS electronic bill of lading service
Mutualisation of cover by leading P&I Clubs set to increase take-up of electronic shipping documents
essDOCS, the leading shipping provider of electronic shipping documents is pleased to announce that the International Group of P&I Clubs has confirmed that essDOCS CargoDocs™ electronic bills of lading used in accordance with version 2009.3 of the essDOCS-Databridge™ Services and Users Agreement (DSUA) are approved for the purposes of standard P & I cover.
In circulars published in September 2010, the 13 Clubs in the International Group advised all members that standard P & I risks associated with the carriage of cargo under an eB/L issued using essDOCS CargoDocs™ Services under version 2009.3 of the DSUA fall within members’ standard terms of cover.
This recognition, which replaces the previous third party insurance cover for IG members for ‘eRisks’ , is crucial to the wider adoption of electronic bills of lading, which have been available to essDOCS clients since the start of 2010. Terminals, shipowners and charterers can now accelerate their move towards secure, efficient electronic document processes.
Until the 2010/11 Policy Year, P&I Clubs excluded liabilities and losses arising from the use of any electronic trading system, to the extent that such ‘eRisks’ would not have arisen under a paper trading system (the Paperless Trading Exclusion).
After reviewing the legal framework associated with essDOCS CargoDocs™ Services, the IG decided that standard P&I cover arising in respect of the carriage of cargo using documentation transacted in the essDOCS Exchange under version 2009.3 of the DSUA would not be subject to the Paperless Trading Exclusion. As a result, members of the 13 IG P&I Clubs using CargoDocs™ are assured that they have cover for standard P & I risks when doing so, subject to the terms of that cover and of DSUA version 2009.3.
Alex Goulandris, chief executive officer of essDOCS, said:
“We are delighted that the International Group has approved essDOCS CargoDocs™. This creates the conditions for significant growth and take-up of electronic bills of lading and gives the shipping industry the opportunity to move ahead with a proven technology which is already in use by some of the world’s biggest maritime trading companies.”
The IG decision came after an exhaustive review of the essDOCS legal framework agreement, and the Group is satisfied that version 2009.3 of the DSUA meets the IG conditions for use of electronic trading systems. Current signatories of the DSUA, which forms the basis of any live use of essDOCS CargoDocs™ services, include ExxonMobil, BP Trading, Broström Tankers, BP Shipping, DONG Energy, A.P. Moller - Maersk, Morgan Stanley, Mabanaft, INEOS, Shell-STASCO, Teekay Tankers, AET, Saybolt, Inspectorate and Denholm-Barwil.
Links to the P&I Club Circulars are set out below:
NB: under the terms of their cover, Members may be required to notify the Associations before using CargoDocs™ Services. It is therefore recommended that users check their Club Rules to ensure that any formal requirements are satisfied prior to their first use of the essDOCS Exchange.
Notes to Editors
Copyright © essDOCS. CargoDocs™, essDOCS-Databridge™, SafetyDocs and CustomsDocs™ are copyright of essDOCS Limited 2010. All other trademarks are property of their respective owners.