90% of all Shipping to be Tracked Using Blockchain Technology

The second and fourth largest shipping companies, Mediterranean Shipping Co (MSC) and CMA CGM, have joined TradeLens the shipping blockchain platform according to recent Reuters report.

The Swiss and French based shipping giants have been on-boarded by Maersk who developed the platform in conjunction with tech firm IBM.

The purpose of the TradeLens platform is to reduce the mountain of paperwork, time and costs involved in the shipping industry and the surrounding logistics. With over 90% of goods transported through the shipping sector per year and an estimated value of over $4 Trillion, TradeLens is well positioned to streamline and improve efficiencies.

According to the report, the addition of MSC and CMA CGM will mean that almost 50% of all World trade cargo will be tracked using Distributed Ledger Technology (DLT).

Rodolphe Saade, CMA CGM’s chairman and chief executive stated that ‘The fact that we are joining forces and creating a standard in the industry is much more powerful.’

Even though the shipping industry has benefitted from enhanced technology over the past 50 years, little has changed by way of processes. As pointed out by Maersk Executive Vice President Vincent Clerc ‘Still lots of processes in our industry actually predate the container.’ And noted the newest technology as ‘crucial for cutting costs in an industry that has seen little innovation since the container was invented in the 1950s.’

As reported, the huge amount of paperwork required within the industry is insurmountable and can amount to almost 20% of the cost of shipping each container. TradeLens is designed to help reduce this and provide transparency to all authorities involved in the supply chain.

More than 100 companies have reportedly signed up to the TradeLens platform, these include ports and authorities, companies such as Procter & Gamble and U.S. Customs and Border Protection.

Customers of the shipping firms, shipping lines, freight forwarders, port authorities and customs authorities are all set to benefit from digitizing the supply chain process.

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