Today was a big day for shipping and blockchain. This morning, the world’s second and fourth largest shipping companies announced they would be joining Maersk on their blockchain platform, TradeLens.
The two companies, Mediterranean Shipping Co (MSC) and CMA CGM will become a part of the project which will result in around 50% of all sea cargoes being tracked by blockchain.
TradeLens that was developed in a joint venture between IBM and Maersk which was launched last year. Its aim was to completely overhaul an revamp the global supply chain from shipping and logistics operators to customs authorities across the world. It also encourages cooperation between rivalling enterprises in a bid to enhance the efficiency of cargo shipments.
Whilst the platform had initially suffered some issues in attracting new carriers, TradeLens now has over 100 organisations signed up, as well as some of Maersk’s biggest competitors. This is good news for both the TradeLens platform, and the adoption of blockchain technology overall.
Other entities involved in the project include the US Customs and Border Protection, Procter & Gamble, Saudi Customs, Canada Border Services Agency, and the Customs Administration of the Netherlands.
Chief Executive Chairman of CMA CGM, Rondolphe Saade said:”the fact that we are joining forces and creating a standard in the industry is very powerful.”
Vincent Clerc, Executive Vice President of Maersk said that the inclusion of CMA CGM and MSC was a “game changer”. He added: “Even today customers live with the administrative burden of having to maintain the huge amount of paperwork and not having visibility of what is happening with their goods.”
Clerc added that around 20% of the cost of paperwork for each shipping container can be cut, due to using the TradeLens platform.
Also announced today was the news that the world’s biggest shipbuilder would be making a move onto the blockchain.
South Korean Hyundai Group and its subsidiary Hyundai Heavy Industries will now use the HiPRO blockchain platform, created by Hyundai, in order to manage purchases, factories, and supply chain management. They are the biggest shipbuilder in the world and posted net profits of $2.4 million for the first three months of 2019.
The company intends to process over $6 billion through the blockchain platform, including contracts, receipts, payments, negotiations and procurement.