According to a report published by Globenewswire on April 7, OOCL’s CargoSmart software company conducted a pilot project for a new application with Cosco, Shanghai International Port Group (SIPG) and Tesla aimed at transforming the cargo release process through blockchain technology.
This is among the first pilot projects with an ocean carrier implementing the real-time exchange of shipment data via blockchain with a terminal operator.
The pilot project was planned to reduce the steps of verification of the consignee and shipping agent with their ocean carriers in order to facilitate the release of sea waybills.
The company plans to digitize the paperwork and the total amount of time required to pick up items from shipping terminals, thus minimizing delivery times.
Once it is officially established, the application will be further developed for Global Shipping Business Network (GSBN) blockchain consortium participants.
“The application will undoubtedly accelerate the digitalization of shipping industry processes and the further optimization of currently stressed global supply chains,”
CargoSmart said today.
Blockchain will be a game-changer for the shipping industry
As blockchain technology evolves, it has gained a fair share of lovers and haters, but despite this, the shipping industry is increasingly embracing it due to its proven cost efficiency capability.
Blockchain could remove or significantly reduce the paperwork that is such a big part of shipping. Large amounts of paperwork accompany transactions like lading bills, purchase contracts, credit notes, and contracts with charter parties, port papers, etc.
Such papers move through a host of various parties to bring and distribute the goods to materialise and make payments which are complex and time-consuming procedures.
The blockchain will save and generate billions by digitizing the paper trail of shipping, signed and marked cargo and freight papers containing hundreds of pages that need to be physically delivered to thousands of different governments, banks, customs offices and other organizations by raising product marketing time, reducing trade barriers.
It is hoped that blockchain technology will create a network that is not dominated by endless paperwork and complicated transactions, but instead entirely digital, allowing for more efficient freight movement and reduced costs and waste of resources
It is still early days and a long way to go before the industry can comprehend the full potential of blockchain shipping.