Fonterra, one of the world’s leading dairy processors, completed its first blockchain trade transaction. It used Wave‘s platform for an electronic bill of lading (eBL) and other documents in order for HSBC to issue a Letter of Credit (LC). The shipment involved the export of milk powder from New Zealand to Sichuan New Hope Trading in China.
A bill of lading, the document provided to exporters when goods are loaded onto a ship, represents the ownership of the cargo contents. It will eventually be passed on to the buyer, who will use it to get the cargo released when the ship arrives.
For the seller, there’s a risk that the buyer won’t pay. So it often goes through the process of acquiring a Letter of Credit from a bank. The exporter’s bank makes the payment on presentation of the bill of lading and fulfilling other requirements.
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