The seaborne cargo’s have decided to take on blockchain technology with an aim to make its operational process cost effective and improve its facilitations towards tracking shipments. This ascending approach towards improvement shipment tracking operations have added two big containers in shipping operations.
Germany’s Hapag-Lloys AG and Japan’s Ocean Network Express said on Tuesday that they will collaborate with the TradeLens blockchain Platform which is being launched by A.P. Moller-Maersk A/S and International Business Machines Corp.,which leads five out of six worlds largest carriers that holds control over 60% of the ocean-going capacity of cargo containers.
In addition, Switzerland-based Mediterranean shipping Co. and France’s CMA CGM SA, which are the world’s second and third largest box ship operators after Maersk, had also taken a step forward by conjoining with TradeLens Block chain Platform in May, 2019.
The Managing director of Information Technology at Hapag-Lloyd, Martin Gnass said,“Now, with five of the world’s six largest carriers committed to the platform, we can accelerate that transformation to provide greater trust, transparency, and collaboration across supply chains and help promote global trade.”
With the use of Blockchain Technology, the ocean carriers can share information relatively as their goods moves through maritime-focused supply chains.
Embedding block chain technology will also benefit in reducing cost of paperwork. Towards its paper work concern, Maersk said that the cost required to process the documentation and administration work is huge which affects its physical transportation facilities. These conditions affects many goods that are shipped every year from which around one fifth makes up through its physical transportation costs.
Many companies, such as transportation operators and freight forwarders, who manage the flow of goods are unwilling to share any of the detailed information related to their shipments which are mostly handled by multiple cargo companies, with the fear that competitors may use the data to lure away their customers. With providing solutions to this concern, block chain platform allows only trusted participants who can contribute information towards its electronic ledger commonly.