Maersk Team Up With Saudi Arabia To Strengthen Blockchain Technology
Saudi Customs, in partnership with the Ministry of Communications and Information Technology (MCIT), the General Authority of Ports, and integrated logistics company Maersk, held a press conference to highlight the importance of blockchain technology in the shipping industry.
Saudi customs authority explained that blockchain technology supports the business development of major importers and traders by reducing time and cost and enhancing the security of supply chains. This step reflects the strategy of Saudi Customs to facilitate cross-border trade, especially through sea-ports, which account for roughly 80 percent of trade in the Kingdom.
Blockchain is one of the key emerging technologies that will have a significant impact on the commercial shipping business. It is viewed as a secure method of exchanging information for contracts in maritime. It minimizes paper use, reduces administration, cuts out duplication and prevents fraud.
Blockchain can improve the traceability of the cargo as it provides transparency in the supply chain and displays changes quickly and reliably to all stakeholders.
The major advantage of adapting a Blockchain Technology for Shipping Industry will be:
- Speedy processing time and real-time updates
- Accuracy
- Transparency
- Security
- Cost Saving
- Easier market access
Maersk and IBM have built the TradeLens platform, a common platform for users from airlines, ports, terminals, customs authorities, and customers, to automatically and reliably deliver their shipment data via blockchain technology.
In another example, container shipping companies CMA CGM, COSCO Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group have signed service agreements with Cargo Smart for the Global Shipping Business Network (GSBN).
Sources:
