Beyond MLETR: Legal Gaps and the Adoption of Electronic Bills of Lading

Abstract

This article examines the regulatory framework and governance mechanisms supporting the adoption of Electronic Bills of Lading (eBLs) in international trade amid the transition toward cross-border digital trade. Although eBLs can reduce costs, minimize risks associated with paper-based documents, and improve commercial efficiency, their implementation remains constrained by legal uncertainty, limitations of the trade ecosystem, and concerns regarding the reliability of digital systems. The article analyzes the interaction between the Model Law on Electronic Transferable Records (MLETR), the Reliability Assessment Framework developed by the International Chamber of Commerce Digital Standards Initiative (ICC DSI) in collaboration with the Digital Governance Council, and the risk management mechanisms established through the requirements of the International Group of Protection and Indemnity Clubs (IGP&I).

The study finds that MLETR plays a significant role in recognizing the legal validity of eBLs under the principle of functional equivalence by establishing key requirements such as control, singularity, and integrity of electronic records. However, as MLETR is a principle-based legal framework that does not provide detailed technical standards or risk-management mechanisms, additional technical standards and industry-based mechanisms are necessary to enhance trust and operational certainty in practice. In this regard, ICC DSI developed the Reliability Assessment Framework to translate the concept of “reliability” into verifiable technical criteria, while IGP&I manages and allocates risks through insurance mechanisms and the approval of eBL platforms.

The article argues that the governance of eBLs reflects a hybrid regulatory approach integrating legal, technological, and industry-based mechanisms. It further identifies major challenges, including interoperability issues between platforms, cross-border legal inconsistencies, the absence of effective dispute resolution mechanisms, and the limitations of legacy systems. Finally, the article recommends that Thailand reform its relevant legal framework, adopt international standards, and develop a digital trade ecosystem through experimental mechanisms such as regulatory sandboxes to support the effective implementation of eBLs in the future.