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BLOCKCHAIN brings a new vibe in Shipping Industry

Blockchain is one of the hottest technologies in today's world. It is just a distributed database where information can be stored, shared with multiple stake holders simultaneously and reconciled but cannot be corrupted. The other main highlights are its excellent features like below:

  • Single source of truth
  • Trustworthy audit trail
  • Less paper work
  • No redundant data sharing which implies to increased efficiency  
  • No tampered transactions as anything written on the ledger cannot be altered

A shared platform is the most powerful offering by blockchain as it increases trust and transparency among all the involved stake holders although they belong to separate organizations.

While banking and payment industries are mainly utilizing the obvious blockchain advantages today, we can also very soon see other industries, joining the same horde. For sure one of them will be the shipping and logistics industry.

There are several stake holders, currently tangled with each other in shipping industry like the shipper, consignee, forwarder, ocean carrier, customs, trucker, port authority, container repair vendor, surveyor etc. Daily thousands of transactions are happening among them and many transactions and notifications are kind of redundant as the same data is needed by multiple parties. Also as separate enterprises are using separate technologies and middleware there is a need to support diverse platforms and employ multiple IT teams in one organizations to maintain the interfaces.

If every party accepts a blockchain solution then entire shipping process can be easier, secured and cost-friendly like never before.

HOW and WHY?

The advantages:

  • Distributed and simultaneous customs manifest data sharing among multiple parties, that will also reduce unnecessary penalties
  • Less paper work to maintain sales contracts, bill of lading, port documents, manifest load-list reports etc
  • Minimized communication delay and dependency
  • Customs can deal with more transactions quicker to ease the flow of international supply chain
  • Real time Cargo tracking by shipper and consignee
  • Real time container tracking between trucker, carrier, vessel owner, terminal
  • No fraudulent transactions will result into increased cross border and inter customs security.
  • Minimized cargo delay/ faster Terminal operations
  • Less delay in communication implies to less dwell time for carriers
  • Transaction transparency among stake holders of maintenance and repair department

 While Maersk and Marine Transport International have already started thinking blockchain based cargo and VGM tracking, the logistics industry in Korea could also be seen, accepting blockchain by end of 2017. According to the Korea Herald, the pilot project will be done under the recently launched consortium, including Korean customs service, Ministry of Oceans and Fisheries, other local logistics companies, Hyundai Merchant Marine, Ktnet etc.

  1.  Ref# Koean Herald



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