Blockchain to revolutionize shipping industry
Globalization has brought some tremendous progress in trading and logistics networks which includes the fastest and biggest vessels, ports operated by robots and computer databases to track cargoes. Even though this field is well developed, still requires millions of paper documents to enter the data and information about the cargo and logistic details. This process requires so much time, effort and manpower.
A.P. Moeller-Maersk A/S and other container shipping lines have joined together to put an end to this process. They teamed up to upgrade the world’s most complex logistics network. To make this happen, dozens of shipping lines and thousands of related businesses around the world, including manufacturers, banks, insurers, brokers and port authorities will have to advance a protocol that can connect whole of the new systems to one vast and wide platform.
For shipping, there requires a lot of paper documentation process, which begins when a cargo owner books area on a ship to move goods and ends when the goods get delivered to the receiver. Papers need to be filled in and approved before a cargo enters and leave a port. Single shipment requires hundreds of pages which need to deliver to dozens of different banks, agencies, customs bureau and other entities.
If they succeed in the process, then the documentation will take not more than minutes which will eventually reduce manpower also. This will put an end to the documentation that takes days and days to complete eventually. Also, one major effect that will happen is the cost of moving goods will significantly decrease. This process will ultimately make the logistics process faster, which will enable moving goods faster than before.
Rahul Kapoor, an analyst at Bloomberg Intelligence in Singapore said, “This would be the biggest innovation in the industry since the containerization,” “It basically brings more transparency and efficiency. The container shipping lines are coming out of their shells and playing catch-up in technology.”
How to achieve this? Now a day every industry from mango farmers to multinational companies like IBM, and Deloitte are behind blockchain. And they are implementing blockchain in every part of their life. The distributed ledger technology allows transactions to be verified autonomously. By implementing this system would benefit not only shipping but the communications and border administrative process can also be improved. According to World Economic Forum, this could generate an additional $1 trillion in global trade.
It was last month that APL Ltd., owned by the world’s third-largest container line CMA CGM SA, together with Anheuser-Busch InBev NV, Accenture Plc, a European customs organization and other companies reported that tested blockchain-based platform.