Chinese Shipping Firm to Study Blockchain for Upstream Supply Chain Funding
China’s government backed media outlet People’s Daily has revealed the plans of China Shipbuilding Industry Company Limited (CSICL) to study the benefits of blockchain in funding its upstream suppliers. Notably, CSICL is a sister concern of China Shipbuilding Industry Corporation (CSIC), one of China’s largest shipping consortia.
CSICL inked a strategic collaboration deal with Shanghai Bank for services related to supply chain (logistics). According to the terms of the deal, CSICL and Shanghai Bank will supposedly build a blockchain-powered online supply chain funding platform for upstream suppliers of CSIC.
The platform would supposedly provide funding for supply chains serving the 10 key product segments of the company: shipbuilding, marine engineering, turbochargers, large steel structure manufacturing, storage batteries, diesel engines, tobacco machinery, gas meters, port machinery and distribution systems for automation.
The recent pact is one among the overall idea of Shanghai Bank to enhance workflows using emerging technologies, according to the People’s Daily. Shanghai Bank supposedly introduced its Uplink e-Chain last October— a web based supply chain funding facility platform for SMEs. Blockchain technology has been commonly used throughout the shipping sector and in different supply chains.
The biggest cargo shipping enterprise in Israel, Zim, established a blockchain platform for digital bills of lading to all customers in selected transactions in January.
Last month, in collaboration with Moscow-based blockchain firm Iconic, Russian shipping logistics company Infotech Baltika will build a blockchain-based port operating software dubbed Edge. Port. The Singapore government revealed earlier in March that it would move forward with a trial of its blockchain powered maritime trade software TradeTrust.
The trial is based on a Memorandum of Understanding inked by Infocomm Media Development Authority, Maritime Port Authority, Singapore Customs and the Singapore Shipping Association in January.