Tesla, SIPG, Cosco Trial Blockchain Technology to Streamline Cargo Shipment
According to April 7, 2020, report by Splash 247, software firm CargoSmart, in partnership with Cosco, Shanghai International Port Group (SIPG), and Tesla recently conducted a pilot project to test a new application that could transform the cargo release process via blockchain technology.
Blockchain Technology to Help Change the Cargo Industry
Making waves across myriad industries courtesy of its robustness and innovative characteristics, distributed ledger technology (DLT) is not being tested to streamline operations in the cargo industry. Specifically, a group of various industry heavyweights is coming together to conduct a real-time exchange of shipment data between ocean carriers and terminal operators.
CargoSmart stated that the said application will “undoubtedly accelerate” the digitization of shipping industry processes and aid in further optimization and streamlining of currently stressed global supply chains.
Per sources close to the matter, after the establishment of the Global Shipping Business Network (GBSN) blockchain consortium, the application will be extended to its members.
The pilot, which was conducted sometime in December 2019, witnessed Cosco and SIPG streamline the cargo release process by enabling Tesla to accelerate its cargo pick up procedures on a trusted and secured platform.
Further, the pilot also helped SIPG view a single, trusted source of Cosco’s sea waybill data, which helped in the rapid preparation of delivery orders for consignees and their shipping agents. The application was further bolstered in March 2020 when CargoSmart tweaked it to display laden gate out, appointment date, and terminal release, to enable shippers to have granular visibility of their cargoes.
Henry Huang, a senior executive at SIPG, said:
“The pilot is a key component of our journey towards paperless, trusted, and seamless trade processes at the Port of Shanghai, and it demonstrates the benefits for supply chain stakeholders around the world.”
Notably, CargoShip also revealed that it will conduct similar pilots at ports in Xiamen, Qingdao, and Laem Chabang in Thailand.
Blockchain for Maritime Operations
As alluded to earlier, DLT is being increasingly used by enterprises across the globe whose business operations comprise long, complex, supply chain mechanisms.
BTCManager reported on May 21, 2019, how the Saudi Customs had departed the first shipment that was powered by blockchain technology.