Blockchain technology has rapidly expanded beyond just the fintech sector over the last few years. There is hardly any industry that has not been disrupted by this next-generation tech. From chain, healthcare, green energy trading and much more, blockchain is being used as a tool to streamline processes.
The global shipping industry is one of the sectors that have recently started to experience blockchain-based innovation. The shipping industry has followed the traditional ways for a long time and the formalities related to the entire process are mostly on paper, which can often be quite chaotic.
Enhancing the Shipping industry
In order to make these processes more seamless, blockchain-based solutions are coming into play. As per reports, India’s biggest port operator Adani Ports and Special Economic Zone Limited (APSEZ) has joined hands with tech behemoth IBM, to leverage its TradeLens platform to digitize its supply chain system.
TradeLens is the result of a collaboration between Maersk and IBM, and utilizes IBM’s Blockchain technology as the foundation for digital supply chains, empowering multiple trading partners to collaborate by establishing a single shared view of a transaction without compromising details, privacy or confidentiality.
Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in global trade.
APSEZ is set to use the TradeLens platform across its major courier management facilities placed around six Indian states — four in Gujarat and one each in Odisha, Tamil Nadu, Goa, Chennai, Andhra Pradesh and Kerala. This move was in response to the bypass the various shortcomings of the traditional supply chain system exposed by the Covid-19 crisis.
A quote from an official familiar to the matter stated:
“During the pandemic, we realized the price of not digitizing the industry. There will be a mindset change now and more firms will adopt the technology.”
A research conducted by QBIS Consulting on Total Transport and Logistics Costs (TTLC) revealed that digitizing the supply chain can help importers of a single major port save up to $220 million every year. Exporters are also estimated to save around $40 million each year.
TradeLens has become a pioneer in digitizing trade lines with its blockchain-based solutions, partnering with major industry players in an effort to enhance their supply chains. Last year it announced its partnership with major Asian shipping terminal Cái Mép International Terminal.
As previously reported by The Daily Chain, another blockchain company, CargoSmart, the software arm of Hong Kong-based Orient Overseas Container Line, partnered with Cosco, Shanghai International Port Group (SIPG), and the electric vehicle giant Tesla, to conduct a pilot program for an application that would revolutionize the cargo release process in the shipping industry.