Nine ocean carrier majors and terminal operators signed on Tuesday issued a formal statement of intent for a Memorandum of Understanding (MOU) to form a blockchain consortium.
The consortium, named the Global Shipping Business Network (GSBN) includes CMA CGM, Cosco Shipping Lines, Evergreen Marine, OOCL, and Yang Ming; terminal operators DP World, Hutchison Ports, PSA International Pte, and Shanghai International Port; and software solutions provider CargoSmart.
The open digital platform aims to connect all stakeholders, including carriers, terminal operators, customs, shippers, and logistics service providers to transform the supply chain and boost its effectiveness.
Blockchain is expected to resolve siloed shipment management procedures and disruptive information gaps in the container shipping sector.
CargoSmart said that the first planned application of the technology will allow shippers to digitize and organize their dangerous goods documents and automatically connect with relevant parties to streamline the approval process.
The application is scheduled to be available in December 2018.
“The GSBN blockchain consortium has the potential to enable faster, more accurate processing of cargo information and more transparency of terminal operations to cargo owners,” said Yan Jun, president of Shanghai International Port.
“As a founding member of the GSBN consortium, Hutchison Ports recognises the potential of blockchain technology to be the key game changer with far-reaching impact on global supply chains, bringing immense benefits to all aspects of operations and end-to-end visibility throughout the entire supply chain.
This collaboration brings together major industry players who strive to develop an open digital platform that will deliver efficiency gains and reduce costs of transactions,” said Ivor Chow, Director – Corporate Finance & Business Development of Hutchison Ports.