Major Shipping Lines Collaborate to Employ Blockchain for Improving Cargo Transportation
Global Shipping Business Network (GSBN) has revealed a partnership with COSCO Shipping Lines (COSCO), Orient Overseas Container Line (OOCL), and Shanghai Research Institute of Chemical Industry Testing Co., Ltd. (SICIT) in the utilization of blockchain technology. Collectively, all four businesses have utilized blockchain technology to create an industry-first proof-of-concept that improves maritime transportation protection.
By leveraging GSBN’s blockchain-powered platform, an innovative simplified procedure has been developed to guarantee that secure chemical transit credentials and the data they hold can be validated from the initial source and are accurate as well as trustworthy. To show off this simplified procedure, the four businesses have devised an effective proof-of-concept with the transporter and electrical gadget manufacturer Midea. COSCO and OOCL will be able to confirm the certificates received by Midea for their cargo straight with SICIT via GSBN, as reported by GSBN.
As per the company, the blockchain-powered framework of GSBN guarantees that certificate information is unchangeable, organized, and verifiable as the only single point of truth. This is expected to minimize errors by humans, improve cargo security, and speed up the process altogether. It is also anticipated to help with the future development of automated authentication in addition to the distribution of trustworthy certificate data recorded on the blockchain to multiple parties. Special cargo containing designated products, including chemicals and lithium batteries, must be validated as secure for the shipment before being transferred over to shipping and logistics businesses.
GSBN contends that this is essential as carriers will handle transit depending on the appropriate certification in order to reduce the likelihood of potential catastrophes and safeguard personnel. Historically, shippers would gather the certificate from a certification organization and provide a physical copy or a scanned copy of the paperwork to the carriers.
According to GSBN, it can be difficult for carriers and subsequent transportation companies in the supply chain to verify certificates in this format, posing risks such as mislabeling and fraud.
“Aside from improving transportation security, the simplified digital process also improves the overall effectiveness, reduces human mistakes triggered during manual information entry, and offers greater openness to all individuals across the distribution chain,” stated Gaojun Wang, Director of the Information Technology Department at SICIT.
Bertrand Chen, CEO of GSBN, stated: “The employment of blockchain framework technology in this proof-of-concept (PoC) with SICIT permits for organized and dependable validation to take place straight with SICIT, which, paired with the future usage of information from IoT gadgets, will render a considerable variance in risk elimination and effective improvement overall.”
This partnership has come within a month after GSBN and Kaleris, a provider of supply chain technology solutions, unveiled a partnership to broaden access to internet-based distribution chain solutions.