Fonterra, one of the world’s leading international dairy processors, has completed its first electronic presentation for a shipment from New Zealand to China using WAVE BL’s blockchain-based technology with HSBC as the banker.
This fully digital end-to-end Letter of Credit presentation, in which digital documents were cryptographically signed and presented using WAVE BL’s platform, is an example of the regular flow of documents between companies and banks during the international exchange of goods.
On September 21st,2020, the carrier issued its electronic Bill of Lading for a shipment of milk powder and sent it to Fonterra. Fonterra added additional trade documents and presented the digital envelope to HSBC New Zealand. HSBC verified that the documents and commercial terms matched the Letter of Credit and eUCP600 rules and forwarded them to the issuing bank, HSBC China. HSBC China then sent the documentation to Sichuan New Hope Trading, which surrendered the Bill of Lading back to the carrier and released the cargo. The entire documentation presentation was digital and completed in under 24 hours instead of a couple of weeks from beginning to end for regular paper documentation.
This speed and efficiency was something Fonterra had sought to achieve for years, but until recently the right technological solution did not exist to support its wide-ranging activity. In WAVE BL’s blockchain solution, Fonterra has found a technological advance that can finally match its operational needs.
Fonterra performs thousands of Letter of Credit transactions per year. Digitizing trade workflows will streamline Fonterra’s supply chain process and save money. Simply digitizing single New Zealand to China trade described in this article will reduce costs and slash the risk of human errors, document loss, forgery and delays.
Rob Roughan, Interim CEO of HSBC New Zealand said, “We are pleased to have been able to assist Fonterra with this ground-breaking Blockchain transaction, their first using an Electronic Bill of Lading between New Zealand and China. This development supports the digitization of Fonterra’s supply chain into the key market of China, a further example of HSBC facilitating Fonterra’s international banking requirements.”
WAVE BL’s CEO, Gadi Ruschin, adds, “I’m very excited to see these industry leaders joining the network and making trade simpler, quicker, safer and greener. I would like to thank HSBC for leading this innovative journey and enabling their customers to enjoy cutting edge digital solutions. We invite additional corporates to follow Fonterra’s proactive approach and digitize their trade activity.”
WAVE BL is a blockchain-based digital courier platform that mirrors the traditional process for transferring original paper documents—electronically. WAVE BL’s solution enables instant, encrypted and authenticated transfer of unique digital documents. https://wavebl.com/