APPLICATION OF ELECTRONIC DATA INTERCHANGE (EDI) IN SHIPPING BUSINESS – AN EMPIRICAL STUDY

The study investigates the current impact of Electronic Data Interchange (EDI) adoption in shipping, logistics sea freight forwarding industry and in customs. It is found that the level of adoption of EDI applications in shipping logistics industry is considerably comprehensive. The observed perceived usefulness and perceived ease of use of EDI applications are high across the industry, particularly for web-based EDI applications. Merchants are increasingly using computers to facilitate international transactions, and many observers believe that full-fledged electronic commerce is nearing reality. At present, the business community uses electronic data interchange. The most significant perceived benefits brought by EDI implementation are found to be faster information response and access, improvement of efficiency and streamlining of logistics processes. Since EDI being both quick and efficient, the shipping industry is expected to benefit greatly from its adoption, particularly in the areas of bills of lading. Unfortunately, numerous technical and legal obstacles have slowed the introduction of EDI, with the chief impediment being the law's insistence on paper-based documentation. Recently however, several significant steps have been taken to promote the use of EDI and it is revealed that more Research &Development efforts focusing on the provision of real-time information are warmly anticipated by the industry.