Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

Freight forwarder Marine Transport International (MTI) has completed a successful blockchain pilot program to automate and digitize the entire supply chain process on a decentralized distributed ledger.

MTI has announced details of a blockchain pilot wherein multiple parties – the supplier, shipper, load point, customs and terminal authorities, were able to access real-time data over an interoperable blockchain. The results of the successful pilot were verified by computer scientists at the University of Copenhagen in Denmark and maritime technology leads at Blockchain Labs for Open Collaboration (BLOC).

“All parties involved in the supply chain benefit from automated data flows as the [blockchain] system allows complete interoperability of data sources, even including legacy systems” read an excerpt from a press release, hinting at the possibility of a straightforward implementation of the technology with existing infrastructure at shipping ports.

Jody Cleworth, CEO of Martine Transport International added:

The blockchain has proven to be an excellent way of connecting the different parties involved in any supply chain environment due to the transparency and security-by-design of the technology.


Advertisement:

With the promise of increased security and efficiency, Cleworth envisions blockchain technology to revolutionize “any type of supply chain business, be it marine-, air-, or land-based” with cost savings “as high as 90%” when compared to traditional, paper-intensive, manual-error ridden processes.

Globally, some of the world’s largest shipping giants and trading ports have already begun investing in blockchain technology.

Singaporean shipping giant PIL, one of Asia’s largest shipowners and the Port Authority of Singapore (PSA), among the world’s largest port operator partnered technology provider IBM in working on proof-of-concept blockchain solutions for the global supply chain as well as linking trade finance solutions with the supply chain business over a blockchain.

In a similar project, the government of Dubai partnered IBM to execute an initial pilot that saw fruits exported from India to Dubai by sea. A participating bank issued a letter of credit for the transaction wherein the fruits were turned into pulp in Dubai before their export to Spain.

Featured image from Shutterstock.

Advertisement:
Advertisement:

Posted by Samburaj Das