A merican Club Circular No. 18/19 1 JUNE 13, 2019 CIRCULAR NO. 18/19 TO MEMBERS OF THE ASSOCIATION Dear Member: ELECTRONIC (PAPERLESS) TRADING: ELECTRONIC SHIPPING SOLUTIONS: BOLERO INTERNATIONAL LTD, E-TITLE AUTHORITY PTE LTD, GLOBAL SHARE S.A. (EDOX ONLINE PLATFORM) Members should note that the International Group of P&I Clubs (IG) has approved the Global Share S.A. edoxOnline platform. Members may recall, as reported in Circular No. 24/10 of September 16, 2010, that until February 2010 the rules of all of IG clubs specifically excluded liabilities in respect of the carriage of cargo under all electronic, i.e. paperless, trading systems to the extent that the liabilities under such systems would not have arisen under a ‘normal’ paper system i.e. one using transferable paper documentation. From February 20, 2010 liabilities arising in respect of the carriage of cargo under such paperless trading systems were covered, provided that the system had first been approved by the IG. Since then the IG has approved electronic i.e. paperless, systems administered by Electronic Shipping Solutions, by Bolero International Ltd (more specifically the Rulebook/Operating procedures September 1999.) e-title TM solution and now Global Share S.A. edoxOnline has been added to the list of IG approved systems. edoxOnline provides an electronic paperless system which is supported by a legal framework to facilitate transfer and endorsement of electronic bills of lading, removing the need for a paper bill although there is scope to revert to paper where it is necessary to do so. This is the first approved system to use blockchain technology.. Further details can be found on the company’s website at: www.globalshare.com.ar . The legal documentation and Terms of Use associated with the use and operation of the edoxOnline platform is the e-BL Terms and Conditions (T&C). That documentation has been reviewed and approved by the IG. Other exclusions of cover under IG club rules relating to the carriage of cargo will of course continue to apply in respect of ESS, Bolero, E-Title and edoxOnline in the same way as for paper systems. These exclusions include discharge at a port or place other than the port or place provided for in the contract of carriage, the issue / creation of an ante or post-dated electronic document / record, and the delivery of cargo without the production of the negotiable electronic document / record, which in the case of an approved electronic trading system will mean delivery of cargo other than in accordance with the rules of that trading system. A merican Club Circular No. 18/19 2 As with previous electronic systems, it would be helpful to the IG, in monitoring the use and development of these three systems, if Members who are using any of them would advise the Club of any benefits or difficulties which they encounter, legal or practical, in the operation of the systems. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB All clubs in the International Group have issued a similar circular.