Leveraging Blockchain Technology to increase profitability in Shipping

21st February 2018

Blockchain technology provides the opportunity for the container shipping industry to fully digitise and simplify current procedures, enforcing effective processes that modernise the supply chain offering traceability, transparency and security.

According to IBM and Danish transport and logistics firm Maersk, the digitalisation of the supply chain has the potential to save the industry billions of dollars.The importance placed on Blockchain technology will be reflected within the Intermodal Asia conference next month in Shanghai. The forum ‘Blockchain Technology: digitizing the supply chain’ will address how it can be used effectively within the shipping industry’s supply chain to leverage the opportunity presented by this technological advancement.

“Blockchain is an important topic to discuss because the technology is moving from proof-of-concept to deployed systems” explains Mr. Pindar Wong, Chairman of VeriFi (Hong Kong) Ltd who will present the session ‘Containerising Risk: reducing customs clearance costs, financial uncertainty and multi-jurisdictional legal friction using blockchain technology’.  

“Lack of scale (moving from small prototypes to complex working systems) is an issue currently being faced by the industry and the lack of large scale deployments of blockchain technology, led us to understand in 2017 that ‘time does not scale’.” explains Wong. “I hope that those attending my conference session will receive knowledge of why blockchain is important and take action to deploy the digital identifiers for both their smart companies and their smart containers.”

“Providing a blockchain digital identity for all parties involved in intermodal shipping would be the first step to adopt in the next few years to ensure market sustainability and growth” suggests Wong. “Knowing your counter parties is a very powerful foundation to kick-start new digital technologies. China has an opportunity to work together with other nations to build this new standard using blockchain for the Belt and Road.”

Cryptocurrency

Blockchain-based company 300cubits will launch its own cryptocurrency ‘TEU tokens’, for container carriers to encourage them to use the firm’s new system. The TEU tokens have been custom designed as digital shipping booking deposits, using smart contract blockchain technology to solve the no show and rolling problems ever-present within the container shipping industry. Its co-founder, Johnson Leung, will discuss how Cryptocurrency will impact the industry within the Blockchain Technology forum at Intermodal Asia.

Also confirmed to provide unique insight on digitising the supply chain are; Mr. Nicolas de Loisy, President of SCMO, who will present a much-needed ‘Introduction to Blockchain’; Capt. Jonathan Foong Kah Keong, CEO of Marine Chain, presenting a live case study of ship owners using blockchain and Mr. Alan Robertson, Director of Webster Robertson discussing ‘Blockchain and Cryptodynamics’.

The Intermodal Asia 2018 Exhibition and Conference will run from the 20-22 March 2018 at the SWEECC in Shanghai. ‘Blockchain Technology: digitizing the supply chain’ will take place on Tuesday 20th March, within a 2-day Smart Shipping focused Forum.  Other topics within this Smart Shipping Forum will be Smart Ports, Container Optimization and the Future for Platform Collaboration, Cyber Security, the Internet of Things and Big Data in Tracking, Intelligent Equipment and Reefer Telematics.