LEGAL IMPACTS OF DIGITALIZATION IN MARITIME TRADE: DATA SECURITY, SMART CONTRACTS AND TURKISH LAW

Legal Impacts of Digitalization in Maritime Trade: Digitalization in maritime trade is leading to fundamental changes in the sector and raising many new issues in terms of legal regulations. While digitalization accelerates transaction processes, it creates legal effects across a wide range, from data security to the legal validity of digital documents. Digitalization in maritime trade is creating major transformations in the sector, while also bringing new legal issues to the forefront. Developments such as smart ships, autonomous transportation, and blockchain technology necessitate a reassessment of traditional maritime trade law . 1. Legal Status of Digital Documents: Electronic Bill of Lading (E-Bill of Lading):  Definition: These are electronic documents that replace traditional paper bills of lading. It is a system that digitally documents the carriage, ownership, and terms of carriage of the cargo .  Legal Validity: Electronic bills of lading have gained validity in international and national law . The UNCITRAL Electronic Commerce Convention, adopted in 2005 , regulates how digital documents are accepted in legal systems . However, each country may have different ways of accepting and implementing these documents . Digital Signature and Encryption:  Definition: These are technologies used to ensure the security of digital documents. Digital signatures guarantee the accuracy and integrity of documents, while encryption protects data from unauthorized access.  Legal Issues: The legal validity of digital signatures and encryption is regulated by various international standards and local laws. For example, the European Union's eIDAS Regulation determines the legal validity of digital signatures and electronic transactions. 2. The Security and Data Protection Aspect of Digitalization: Data Security:  Definition: The security of digital systems used in maritime trade transactions involves protecting data and defending against unauthorized access.  Legal Regulations: Data protection laws are important for ensuring the security of personal and commercial information. For example, the European General Data Protection Regulation (GDPR)

Laws such as the GDPR and the US CCPA (California Consumer Privacy Act) set standards for data protection and privacy. Cybersecurity Risks:  Definition: Includes risks such as cyberattacks, data breaches, and system failures in digital systems .  Legal Obligations: Companies' obligations to manage cybersecurity risks are determined by regulations, and penalties may be applied in case of violations . 3. The Effects of Digitalization on Contracts: Smart Contracts:  Definition: Digital contracts executed automatically using blockchain technology .  Legal Status: Smart contracts have begun to be legally accepted in various countries . However, uncertainties and debates continue regarding the legal validity and enforceability of smart contracts. Digital Bidding and Procurement:  Definition: Offers and agreements made through digital platforms in ship buying and selling and other maritime transactions .  Legal Issues: Digital bidding and procurement transactions are regulated within the framework of local and international legal rules. The reliability and legal binding force of digital processes are determined by relevant laws and regulations. 4. Impacts of Digitalization on International and Local Law: International Practices:  UNCITRAL: Regulations developed by the United Nations Commission on International Trade Law establish standards for digital trade and the acceptance of electronic documents .  International Maritime Organization (IMO): This organization sets regulations and standards related to digitalization in maritime trade . Local Laws:

 Legal Frameworks: Each country has its own legal frameworks and regulations regarding digitalization and electronic documents. Inconsistencies between countries can lead to complications in commercial transactions. 5. Operational and Administrative Aspects of Digitalization: Loading and Unloading Processes:  Definition: Digital systems have facilitated the monitoring and management of loading and unloading systems.  Legal Implications: Digital monitoring of these processes can affect the determination of legal obligations and responsibilities. Therefore, accurate recording of processes is important. Digital Recording and Reporting:  Definition: Digital recording and reporting of transactions.  Legal Challenges: The accuracy and reliability of records and reports are critical for legal validity, therefore ensuring this reliability is necessary. The Impact of Digitalization on Turkish Maritime Law: Digitalization in maritime trade is profoundly affecting legal regulations in Turkey, as it is worldwide . Traditional maritime law concepts are being reshaped in the face of new technologies and business models. • Digitalization of Contracts: The provisions regarding signatures and contract formation in the Turkish Commercial Code are being updated to accommodate contracts made electronically . Issues such as the legal validity of electronic signatures, data storage, and security are gaining importance. • Data Security: The protection of personal data has also become a crucial issue in maritime transport . As the amount of data collected on ships increases, the protection of this data under the Personal Data Protection Law (KVKK) is necessary. • Autonomous Ships: If autonomous ships sail in Turkish territorial waters in the future , new regulations will be required regarding issues such as liability and compensation in case of accidents. • Smart Contracts: Smart contracts created with blockchain technology will be useful in ensuring security in maritime trade . However, the compatibility of these contracts with the Turkish legal system and their legal consequences are not yet fully clear.

• Remote Operation: Remote operation of ships will make maritime operations more efficient . However, this has created the need for new regulations regarding issues such as working conditions and occupational safety for seafarers . Actions Needed in Turkish Maritime Law: • Updating Legislation: All legislation regulating maritime trade, especially the Turkish Commercial Code, needs to be adapted to digitalization . • Compliance with International Standards: Compliance with standards set by international organizations such as the IMO (International Maritime Organization) is important. • Keeping Up with New Technologies: As the pace of digitalization increases, Turkish maritime law must keep pace with these developments and make the necessary adjustments. • Training: All stakeholders working in the maritime sector need to be trained on digitalization and its legal consequences. • International Cooperation: Cooperation with other countries to establish common standards and find solutions to problems together is important.

Digitalization in maritime trade, while leading to significant increases in efficiency and speed within the sector, also brings with it various legal regulations and compliance challenges. Understanding the legal implications of digitalization requires knowledge of how these changes will be managed and implemented. International and local regulations must comprehensively address the validity of digital documents, data security, and cyber risks

Law Student Intern Nursena İbanoğlu