Tech company IBM, along shipping lines Mitsui OSK Lines (Mol) and Maersk, is developing plans to use the blockchain technology in the maritime industry with plans like digitalize supply chain or the speeding of international commerce.
IBM, Mol and several subsidiaries of the Mol Group will run a proof of concept of an application that utilizes blockchain. The project will be focused on commercial agreements, logistics documents and insurance will be digitalized, stored and shared between participants, bringing a series of benefits about traditional commercial systems.
The test has the intention of verifying the effectiveness of blockchain for better security and reducing the time required to settle cross-border business transactions, discrepancies between related documents and administrative costs.
The proof of concept will use the framework of the Hyperledger Fabric block chain, developed by the Blockchain Hyperledger consortium promoted by the Linux Foundation.
SMFG recently stated that it was part of a group of Japanese financial institutions that successfully tested a prototype using blockchain technology distributed accounting technology (DLT) to streamline international transaction agreements.
On the other hand, IBM and Maersk are digitalizing the supply chain. The solution, based on Hyperledger Fabric block chain, will be available for shipping and logistics companies.
The solution will help manage and track the paper trail of tens of millions of shipping containers across the world by digitizing the supply chain process from end-to-end to enhance transparency and the highly secure sharing of information among trading partners.
Ninety percent of goods in global trade are carried by the ocean shipping industry each year. IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitization solution, which is expected to go into production later this year.
The solution has the potential to vastly reduce the cost and complexity of trading by using blockchain technology to establish transparency among parties. It is designed to help reduce fraud and errors, waste and cost, time products spend in the transit and shipping process, and improve inventory management.
The expectation is to begin developing the solution entered this year. It is estimated that it has the potential to vastly reduce the cost and complexity of trade by using blockchain technology, and so, establish transparency between parts. The solution is designed to help and reduce fraud and mistakes, the time products last in transit and sending process, better the management of inventory and reduce expenses and costs.
Germán Sánchez, blockchain expert of IBM in Spain, shared
blockchain applications in the shipping industry.
With information from:https://portalportuario.cl/mol-realizara-prueba-tecnologia-blockchain-operaciones-comerciales-transfronterizas/https://www-03.ibm.com/press/us/en/pressrelease/51712.wss