A new blockchain solution from IBM and Maersk will help manage and track the paper trail of shipping containers across the world by digitizing the supply chain process.
IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs[ds_preview] authorities to build the new global trade digitization solution, which is expected to go into production later this year.
According to IBM, it has the potential to vastly reduce the cost and complexity of trading by using blockchain technology to establish transparency among parties. The solution is designed to help reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost.
The costs associated with trade documentation processing and administration are estimated to be up to one-fifth the actual physical transportation costs. A single vessel can carry thousands of shipments, and on top of the costs to move the paperwork, the documentation to support it can be delayed, lost or misplaced, leading to further complications.
Improved visibility and security
Blockchain, an immutable, security rich and transparent shared network, provides each participant end-to-end visibility based on their level of permission. Each participant in a supply chain ecosystem can view the progress of goods through the supply chain, understanding where a container is in transit. They can also see the status of customs documents, or view bills of lading and other data. Detailed visibility of the container’s progress through the supply chain is enhanced with the real time exchange of original supply chain events and documents.
No one party can modify, delete or even append any record without the consensus from others on the network. This level of transparency helps reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost.
The solution enables the real time exchange of original supply chain events and documents through a digital infrastructure, or data pipeline, that connects the participants in a supply chain ecosystem.
