Two of the world’s largest shipping players have joined other industry leaders by adopting blockchain technology. TradeLens is the blockchain-enabled digital shipping platform co-developed and owned by multinational IT company IBM and the world's largest container shipping company, Maersk.
TradeLens has modernized the world’s supply chain ecosystems. The platform provides businesses and authorities along the supply chain with a single, secure source of shipping data. Users connect to share information and collaborate across the shipping ecosystem. This in turn drives more efficient global trade.
Mediterranean Shipping Company and CMA-CGM are the second and fourth largest in terms of cargo carrying capacity. They join other major carriers and over 100 supply chain operators on TradeLens. When combined, comprehensive data for nearly half of the world’s ocean container cargo is now available on the platform.
"Digital collaboration is a key to the evolution of the container shipping industry. The TradeLens platform has enormous potential to spur the industry to digitize the supply chain and build collaboration around common standards," said André Simha, Chief Digital & Information Officer, MSC Mediterranean Shipping Company.
The move to replace old legacy systems with solutions utilising a public leger will add levels of transparency, accuracy, visibility, security and flexibility to shipping networks. Underpinned by blockchain encryption, TradeLens helps users to collaborate and create a secured, transparent, and undisputable record of transactions and the movement of cargo around the world.
The increased visibility and heightened security of goods in transit offered will help fix the weak links that facilitate illicit trade. Millions of transactions are processed each day in the shipping industry, yet historically, processes for the transportation and trading of goods were costly and dependent on unreliable manual and paper-based systems. To date, the lack of rigorous screening processes within shipping and visibility of goods passing through trade zones have been exploited by criminal networks to support illegal activity and illicit trade around the world.
Philip Morris International (PMI) is one of the signatories of the Declaration of Intent to prevent the maritime transportation of counterfeit goods. Tomas Garcia-Lomas, Head of Illicit Trade Prevention Logistics projects at PMI, commented on this recent adoption of blockchain technology: “the fight against illegal networks must be supported by robust frameworks, and platforms that offer participants a transparent and secure exchange of information will increase trust across the global supply chain, and are a welcome step in the right direction to tackle illicit trade.”
TradeLens has continued its expansion with addition of major ocean carriers Hapag-Lloyd and Ocean Network Express joining the platform.
To find out more about how the adoption of blockchain is set to revolutionise the fight against illicit trade in the shipping industry, click here.
Written by STOP: ILLEGAL