Presented by: Bevan Davies, VP Asia Pacific & Head of … · Presented by: Bevan Davies, VP Asia...
Transcript of Presented by: Bevan Davies, VP Asia Pacific & Head of … · Presented by: Bevan Davies, VP Asia...
CargoDocs for Trade Finance
Presented by: Bevan Davies, VP Asia Pacific & Head of Metals
© 2015 essDOCS Exchange Limited
© 2015 essDOCS Exchange Limited
essDOCS is the leading enabler of
Paperless Trade
© 2015 essDOCS Exchange Limited
2,800+Customers
incl. 10% of FORTUNE Global 500
15Solution Partners
In Numbers
46%Global Tanker Fleet, 23% Global Bulker Fleet, 22% Global Liner
Fleet
4Key Target Markets: Agri, Energy,
Chemicals, Metals & Minerals
22Major Banks (50+ branches)
15+ Industry Body approvals incl. IG P&I, TT Club, ITIC, BIMCO
© 2015 essDOCS Exchange Limited
In Use
CargoDocs Country
CargoDocs in testing
essDOCS Offices
© 2015 essDOCS Exchange Limited
CargoDocs for Trade Finance
Based on the global leading electronic Bill of Lading & supporting eDocs solution
Purpose to enable entirely paperless commodity finance operations
eTrade Finance modules:
o ePresentation
- eUCP letters of credit
- eDocumentary collections
o Bank Payment Obligation plus eDocs (BPO+)
In development:
o Single-sign on with eLCY
o eWarehouse Warrants
© 2015 essDOCS Exchange Limited
Finance Ecosystem
Traders/Exporters:
BHP Billiton
Vale
Anglo American
Rio Tinto
CNBM
Cargill
Bunge
Trafigura
Gunvor
Noble Resources
Looking to adopt:
Louis Dreyfus
COFCO
Exxon Chemicals
BP Chemicals
Vitol
© 2015 essDOCS Exchange Limited
Opportunities & Benefits
Improved compliance
Improved transparency
Eliminate risk of lost or fraudulent documents
STP / automation
Improved Customer Offerings
Reduced risk of disintermediation
© 2015 essDOCS Exchange Limited
PRESENT eSET
TRANSFER
Issuing Bank
Shipper or Freight Forwarder
End Receiver / Buyer
Negotiating Bank
Ship Owner or Agent
DRAFT
APPROVAL
eB/L Supporting eDocs
Workflow
CargoDocs
Cargo Delivery(B/L Accomplished)
© 2015 essDOCS Exchange Limited
Questions
Thank You
© 2015 essDOCS Exchange Limited
www.essdocs.com
CONTACT INFORMATION:
BEVAN DAVIES
M: + 65 8428 0991
© 2015 essDOCS Exchange Limited
Appendix I: About essDOCSAppendix I: About essDOCS
• Mission to simplify and automate global trade operations
• Private company, funded by neutral investors with long-term outlook
• Flagship solution, CargoDocs, enables paperless trade
• Customers include 10% of Fortune Global 500 companies, 20% of Fortune Global 100 & 60% of Fortune Global 10
• Expect 200-300% growth in 2015
• 40+ employees based in Valetta, London, Athens, New York, Singapore and Taipei
• Established in 2005
• More info at www.essdocs.com
© 2015 essDOCS Exchange Limited
Appendix II : Key Contacts
• Americas: Marisa Martin (New York)
• Asia & Metals / Minerals: Bevan Davies (Singapore)
• Chemicals & Banks: Ashley Skaanild (London)
• Energy & Agriculture: Cynthia Worley (London)
• Europe: Katerina Anagnostara (Athens)
© 2015 essDOCS Exchange Limited
Appendix III: Why eDocs and not Paper Docs?From a financing perspective, eB/Ls and/or BPO make a huge difference in shorter routes
Draft, Sign & Issue eB/L
Bank Review
2 4
Bank Review
3
eB/L + eUCP
Draft, Sign & Issue eB/L Courier to BankBank
Review Courier to BankBank
Review Courier to Buyer
Elapsed Days: 3 5 6 8 9 11
Paper Documents
(Sailing Time from Port Hedland to Shanghai) 11 days
1 2
BPO+
TSUDraft, Sign &
Issue eB/L
Assumptions: Docs are created, signed and issued to shipper in two days with paper and one with eDocs; all courier times are two business day and takes one day for each party to process documents; no mistakes, and/or rejections of documents!
© 2015 essDOCS Exchange Limited
Best Regional Trade Finance Solution
BHP Billiton uses CargoDocs eB/L & eUCP Presentation
A typical shipment of trade financed metals from Australia to China for a four-corner presentation in just four days:
1. Seller/carrier draft original eB/L online
2. Ship owner approves, signs and issues the original eB/L
3. Seller uploads additional docs (invoice, certificates, etc) online to create the “eSet”
4. Whole ‘eSet’ is endorsed by Seller and presented electronically to Negotiating Bank under an eUCP600 letter of credit
5. Negotiating Bank examines the eDocs accepts them and transfers to Issuing Bank electronically, after which,
6. Issuing Bank sends eSet to the Buyer
7. Buyer takes Title to the cargo with the original eB/L and either:
1. Electronically endorses and passes the Title of the eB/L + eDocs on to their Buyer
2. Surrenders the eB/L to carrier at destination and takes delivery of the cargo
100% of documents required under the L/C were presented as original eDocs
Best Trade Finance Strategy
Award-winning Transaction:
DSO reduced from 15 to 4
days
Appendix IV: eUCP Presentation Case Study
© 2015 essDOCS Exchange Limited
First Live BPO+ transaction completed in April 2015 involving BHP Billiton, Cargill, Westpac & ANZ
Offers an out-of-the-box, entry-level solution for all participants in a 4-corner model
Solution provides:
(i) BPO application workflow to create the baseline;
(ii) final data submission workflow, with data feed from original eDocs, and the eB/L is held in escrow
Allows banks a low-cost solution to automate BPO prior to fully integration or obtain approval to buy more expensive, but complete solutions; eliminates all data re-entry by banks, resulting in a production-ready, scalable solution
Leverages essDOCS network of corporate customers who have commenced the process of automating paper processes and ensures their involvement
Highly flexible offering: web-based only, partially integrated or fully integrated
Appendix V: CargoDocs BPO+ Case Study
© 2015 essDOCS Exchange Limited
Appendix V: CargoDocs BPO+ Case Study
Exporter Importer
Recipient Bank Obligor Bank
1. Delivery contract (Iron Ore) and agreement on BPO as payment method
Previously via Letter of Credit
2. Data for Baseline
3. eB/L held in escrow 5. Release of eB/L
4. Matching of trade data to create Payment Obligation
3. ShippingDatasets
© 2015 essDOCS Exchange Limited
“Major milestone for global trade finance & cross-border payments achieved with four-corner BPO+ transaction”
“Our continued partnership with essDOCS, which started with eB/Ls, has now expanded to BPO and has added to our efforts to focus on the strategic goal of delivering added value via digitization of trade documents to all supply chain partners”
Featured on:
“An increasingly vital capability for any serious corporate trader”
Hari Janakiraman , Head of Global Core Trade Products
Nadeem Ashraf , Trade Execution Lead
“This is a prime example of how we are delivering innovative solutions for our customers in Australasia and Asia, helping them achieve greater trade efficiency and speed .”
Alex Boye-Miller , Head of Global Transactional Services
Appendix V: CargoDocs BPO+ Case Study
© 2015 essDOCS Exchange Limited
Appendix VII: CargoDocs Academy
Launced December 2014
essDOCS ’ interactive, web-based eLearning portal
Step-by-step guides & courses relevant to Drafters, Traders, Banks and End Receivers