02/03/2022, 16:25 Blockchain – The case for digitalising shipping | Hellenic Shipping News Worldwide

RECENT NEWS Hanseaticsoft announces new Japanese client Fukujin Kisen and expands Asia market presence

HOME SHIPPING NEWS COMMODITIES REPORT / ANALYSIS OIL & ENERGY WORLD ECONOM

⌂ Home / Shipping News / International Shipping News / Blockchain – The case for
SPONSO
digitalising shipping

Blockchain – The case for digitalising

shipping
 in International Shipping News  08/02/2019

As blockchain technology (of cryptocurrency fame) develops, it has gained

its fair share of supporters and detractors, but despite this, it is quickly being
adopted by the marine industry because of its proven ability to optimise
costs.

“Shipping is a slow and age-old industry still conducted in large part by

phone and email. Possibly the last true disruption to the industry was containerisation,” says
Daniel Wilson, Director of Business Development at TradeLens. And he should definitely know.
After all, TradeLens was launched in January 2018 by A.P. Moller – Maersk and IBM to apply
blockchain to the global supply chain.

The TradeLens ‘ecosystem’ currently includes more than 40 port and terminal operators across
the globe, as well as customs authorities, brokers, cargo owners, freight forwarders,
transportation and logistics companies, and others. The TradeLens platform empowers
multiple trading partners to collaborate on a single shared view of a transaction without
compromising details, privacy or confidentiality. Think of it as cloud-based shipping where
every transaction is sealed and stamped electronically.

The next big revolution in shipping? WEEKLY

ESTIMAT
During a 12-month trial, Maersk and IBM applied blockchain to the shipping industry and found
that the transit time of a shipment of packaging materials to a production line in the United
States could be reduced by 40%, avoiding thousands of dollars in cost.

“We believe blockchain can play an important role in digitising global shipping, an area of the
global economy that moves many trillion dollars of goods every year. However, success with
the technology rests on bringing the entire ecosystem together around a common approach
that benefits all participants equally with an open and neutral system,” continues Wilson.
Privacy - Terms

https://www.hellenicshippingnews.com/blockchain-the-case-for-digitalising-shipping/ 1/5
02/03/2022, 16:25 Blockchain – The case for digitalising shipping | Hellenic Shipping News Worldwide

The ramifications are huge and some see it as a revolution akin to when container shipping
replaced stevedores and sacks of rice. Read More

So how does it work? Instead of keeping sensitive and often proprietary ledger records or WEEKLY
ESTIMAT

asset registries in one place, on a computer in one warehouse for example, or in an office
somewhere else only to be emailed back and forth, blockchain systems offer a tamper-proof
way of exchanging data (or time-stamped blocks, as they are called) because of the simple
fact that they are never just located in one place. The information that can be held on a
blockchain – money, information, a contract, a bill of lading – exists as a shared and secured
decentralised and encrypted public ledger. It is inherently resistant to modification and is thus
easily verifiable.

“The application of blockchain technology in the shipping industry has the potential to cut
administrative and operational risks for shipowners, charterers and brokers,” says Michael
Read More
Saava, a partner on the shipping team at law firm Watson Farley & Williams in Dubai, and co-
author of an important paper on the subject. WEEKLY

The case for blockchain

FOLLOW
By digitising the paper trail of international shipping – signed and stamped cargo and freight
documents involving hundreds pages that need to be physically delivered to dozens of
different agencies, banks, customs bureaus and other entities – the blockchain could save, and  
make billions by increasing time to market for products, cut trade barriers and thereby create
jobs.
LIVE SHI
“The expectation is that blockchain technology will create a platform not anchored down by
endless paperwork and complex transactions but instead be fully digital thus enabling more
fluid freight movement and reduced costs and resource waste,” continues Saava in Dubai. Read More

But unless the whole world can agree on one open blockchain standard, not unlike today’s
email, GPS or GSM mobile communications standards, detractors see a situation where a few
global players will retain their own ‘siloed’ and proprietary way of working. This benefits no
one.

“How all this will be achieved remains to be seen,” admits TradeLens’ Wilson. “But we are STOCK N
growing at a rapid clip.”

The hope of course, as with other important world standards, is that companies, governments,
authorities, and other interested parties will be able to agree on a common and basic standard SPONSO
that works with existing systems, and then apply monetisable applications on top of it all.

Wärtsilä, for its part, is closely monitoring all these developments and is actively participating
in accelerator programs with start-up companies on all fronts of the maritime sector. The new
maritime business accelerator programme formed in Turku, Finland in August 2018, is a case in
point. It brought together innovative start-ups and maritime industry companies like Wärtsilä,
Royal Caribbean, and others to find new growth companies for partnerships.

With more stakeholders coming together in this manner, a future where growth is enabled by
blockchain isn’t that far off the horizon.

Unblocking Blockchain Privacy - Terms

https://www.hellenicshippingnews.com/blockchain-the-case-for-digitalising-shipping/ 2/5
02/03/2022, 16:25 Blockchain – The case for digitalising shipping | Hellenic Shipping News Worldwide

While many industry players have been trying to come up with a blockchain solution to help
strengthen industry collaboration, the idea of a truly open platform where all could collaborate
without any inhibition still needs some work.

In November last year, five shipping lines and four terminal operators had announced a 
consortium to develop a blockchain platform to digitise the industry and transform
documentation flows.

Christened the Global Shipping Business Network (GSBN), the collaboration consists of the
Ocean Alliance members CMA CGM, Cosco/OOCL and Evergreen, Yang Ming, DP World,
Hutchison Ports, PSA and Shanghai International Port. The tech company is CargoSmart.

GSBN will allow shippers to digitise and automate the documentation and processes around
‘dangerous goods’, a category of goods classed as hazardous and which is subject to a range
of regulatory schemes. However, the ultimate aim is to “facilitate the seamless sharing of
documents and data across all stages of the shipping lifecycle,” CMA CGM said in a statement.

GSBN drew obvious comparisons with its competitor platform TradeLens, a joint effort
between Maersk and IBM, which was launched in January 2018 and since then has been
criticised for alienating much-needed potential partners because of Maersk’s heavy
involvement.
NEWSLE
TradeLens allows trading partners to collaborate by establishing a single shared view of a
Subscribe
transaction without compromising confidentiality. Shippers, shipping lines, freight forwarders,
port and terminal operators, inland transportation and customs authorities can all have real- Name
time access to shipping data and shipping documents.

The new alliance also raised similar questions within the industry. For instance, how will private
data be handled? What processes will be covered in the platform? Will it be open to other
services? Will it have vendor lock-in by default, or will it enable companies to take out private Email
data and process it in their own way?

However, the new question is: will these new endeavours also trigger a competition within the
industry as companies compete for adoption? Subscr
this site
Industry experts point out that a major drawback is that these initiatives, which aim to provide
an industry platform, are controlled by a small group. Subscrib

In an ideal world, the industry would benefit the most if all were interconnected without having
to make a choice between platforms and offer smooth collaboration.

“Smart technology allows a much broader and horizontal approach to be taken across the
industry, replacing the vertical view traditionally followed today. This means soon enough we
will see a different approach to collaboration, competition, security, safety, and technology,”
explains Marco Ryan, Wärtsilä’s Chief Digital Officer and Executive Vice President.

Wärtsilä has always been at the forefront of cross-collaboration within the industry. In
November 2017, Wärtsilä had announced its vision for a Smart Marine Ecosystem. More
recently, in this year’s SMM held in Hamburg, the company unveiled ‘An Oceanic Awakening’ –
a global initiative focused on the radical transformation of the world’s marine and energy
industry into one supremely efficient, ecologically sound and digitally connected ecosystem.
Source: Wärtsilä
Privacy - Terms

https://www.hellenicshippingnews.com/blockchain-the-case-for-digitalising-shipping/ 3/5
02/03/2022, 16:25 Blockchain – The case for digitalising shipping | Hellenic Shipping News Worldwide

Välj språk
Drivs av Översätt

Tweet Share Share Save 2



Tagged with: TOPS

« Previous:
Korea’s Mega-Merger of Shipyards
Set to Dominate Global Shipbuilding
Trade War Cease-Fire Is Good News
For The Dry Bulk Sector
Next:
»
RELATED NEWS

Demand for Ship Long-Term Ocean Freight IRI Strengthens Support in

Recycling in Healthy Rates On The Rise Again, Asia with New Offices in
Level, Despite a Lack of As Demand, Congestion Vancouver and Qingdao
Candidates And Geopolitical  02/03/2022
 02/03/2022 Uncertainty Squeeze
Shippers
 02/03/2022

RECENT VIDEOS

Seamen’s Club offers home Pre-MEPC 77 Briefing: Arctic H2 Green unveils Clean
away from home Warming – How Will IMO & Energy Hub plan for
 10/12/2021 Shipping Industry Respond Shoreham Port
to COP26 Outcome?  16/11/2021

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and

International Shipping
Shipping News Commodities Report / Analysis
Top Stories Commodity News Weekly Dry Time Charter Estimates
Hellenic Shipping News Chinese iron ore and steelmaking Weekly Tanker Time Charter
International Shipping News prices Estimates
Dry Bulk Market Freight News Weekly Container Reports Index
Piracy and Security News Guide for Carriage of Hazardous Weekly Vessel Valuations Report
Materials Daily Tanker Market Rates
Shipping: Emission Possible
Ship Risk Profile Calculator Daily Bunker Report
Marine Insurance P&I Club News Privacy - Terms
Port News Cheapest Bunker Port Matrix
https://www.hellenicshippingnews.com/blockchain-the-case-for-digitalising-shipping/ 4/5
02/03/2022, 16:25 Blockchain – The case for digitalising shipping | Hellenic Shipping News Worldwide
Shipbuilding News World Economy Weekly Shipbrokers Reports
Shipping Law News World Economy News Monthly Shipbrokers Reports
Interviews IMF/OECD News Monthly Ship Auctions
Recent Videos Weekly Demolition Reports
Live Piracy Map Weekly Ship Sales 
Live Ships Worldwide Traffic Map
Oil & Energy Weekly Shipbuilding Reports
Real Time Marine Weather Oil & Companies News Marine Engine Specifications
DNV GL Maritime Academy Hellas General Energy News Shipping Glossary
Events and Training Courses Bunker Prices Worldwide
Sea Tourism and Yachting Connect with Us
Useful Links
Contact us - Send your news
Rss Feeds
Cookie Policy
Site Map
Privacy Policy
Mobile Applications and Social Media
Subscribe to our free daily newsletter

© 2022 Copyright Hellenic Shipping News Worldwide All Rights Reserved. Disclaimer - Web Design & Developm

This site uses cookies to enhance your user experience. By continuing to use this site, you No problem
agree to our use of cookies. For more info go to our Cookie Policy More info

Privacy - Terms

https://www.hellenicshippingnews.com/blockchain-the-case-for-digitalising-shipping/ 5/5