Presented by: Bevan Davies, VP Asia Pacific & Head of … · Presented by: Bevan Davies, VP Asia Pacific & Head of Metals ... eTrade Finance modules: ... Draft, Sign & Issue eB/L

CargoDocs for Trade Finance

Presented by: Bevan Davies, VP Asia Pacific & Head of Metals

© 2015 essDOCS Exchange Limited


essDOCS is the leading enabler of

Paperless Trade


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


In Use

CargoDocs Country

CargoDocs in testing

essDOCS Offices


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


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


Opportunities & Benefits

Improved compliance

Improved transparency

Eliminate risk of lost or fraudulent documents

STP / automation

Improved Customer Offerings

Reduced risk of disintermediation


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)


Demo

www.demo.essdatabridge.com

http://www.demo.essdatabridge.com/


Questions

Thank You


www.essdocs.com

CONTACT INFORMATION:

BEVAN DAVIES

M: + 65 8428 0991

E: [email protected]


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

http://www.essdocs.com/


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)


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!


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


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

http://www.essdocs.com/press-room/first-cargodocs-bpo-plus-transaction-completed-successfully



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


“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


http://www.reuters.com/article/2015/06/01/trade-finance-electronic-idUSL5N0YK35320150601

http://www.reuters.com/article/2015/06/01/trade-finance-electronic-idUSL5N0YK35320150601

http://www.cnbc.com/id/102722004

http://www.cnbc.com/id/102722004

https://finance.yahoo.com/news/commodities-trade-finance-goes-electronic-132927915.html

https://finance.yahoo.com/news/commodities-trade-finance-goes-electronic-132927915.html


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