To improve the efficiency of cargo release, shipping giants and Tesla jointly piloted blockchain applications

On April 7, CargoSmart, a provider of shipping logistics management solutions, issued a document saying that it has cooperated with COSCO Shipping, Shanghai International Port Group (SIPG) and Tesla to complete a Digitally transform the existing blockchain pilot application of the cargo release process, and point out that this is the first batch of pilot application projects in the shipping industry to realize real-time freight data exchange between ocean carriers and terminal operators through blockchain technology.

Blockchain + shipping

The cargo release process refers to the process in which the transport operator moves the delivery at the end of the journey. To avoid confusion and theft, customers need the original bill of lading or waybill (similar to a receipt) for the operator to verify identity and release the goods.

Under normal circumstances, the release process of the goods is very smooth, but if the sea bill of lading or waybill is lost or damaged, the entire process will become very slow, or even stop. Without these documents, the operator cannot move the delivery, which will cause delays to the entire supply chain and may cause the port authority to impose high fines on ships that stay at the terminal late.

The pilot application of the blockchain aims to reduce the verification steps of consignees, freight forwarders and shipping carriers in the cargo release process to speed up the issuance of shipping orders. How to speed it up? It is understood that this pilot project allows SIPG to view COSCO sea waybill data from a single trusted data source, which can quickly prepare a bill of lading for the consignee (Tesla) and its freight forwarder.

Wu Yu, general manager of COSCO's Enterprise Information Development Department, believes that the pilot application can ensure that a single data source of trusted cargo documents is shared among participants in the supply chain, which not only significantly improves the efficiency of cargo release, but also optimizes downstream supply chain planning.

The pilot was conducted in December 2019. In late March 2020, this pilot application was further upgraded, adding features such as heavy box appearance, appointment date and terminal release status, to provide shippers with an enhanced view of freight. In this pilot, COSCO and SIPG simplified the cargo release process and shortened the cargo release time, enabling Tesla to speed up its cargo pickup process on a safe and reliable platform. On the other hand, it has also achieved paperlessness in the entire trade process.

CargoSmart said that this pilot application not only demonstrates the advantages of a single data source for cargo documents, but also can improve the business operation efficiency of industry participants. In the future, it will accelerate the process of digital transformation of the entire shipping industry and further optimize and improve the current pressure. Global supply chain situation. Once the GSBN blockchain alliance is officially established, the cargo release application will benefit every member of the alliance.

Shipping Industry Blockchain Alliance GSBN

"In recent years, the shipping market has been trying to use new technologies to promote transformation and development. It has indeed made rapid progress in reducing costs, improving efficiency, and sharing information. It has been regarded as a new development momentum for the shipping industry. The hottest among them are Blockchain, blockchain technology may be a new trend leading the shipping in the new era. "Xu Zuyuan, Maritime Ambassador of the International Maritime Organization (IMO) and former Deputy Minister of Transportation, pointed out in a keynote speech at the 2019 Shanghai Shipping Trading Forum. GSBN is one of the achievements of the blockchain application in the shipping market.

On November 6, 2018, Dubai Global Port Group, Hutchison Port Group, PSA International Port Group, Shanghai Port Group (SIPG), French CMA Group, COSCO Shipping Container Lines (COSCO), Evergreen Shipping, OOCL, Yangming CargoSmart, a provider of shipping and software solutions, signed a letter of intent to reach a cooperation intention on building a shipping industry blockchain alliance-Global Shipping Business Network (GSBN).

After the establishment of GSBN, it will provide a collaborative data platform for relevant parties in the shipping supply chain. The platform is committed to accelerating technological innovation and research and development of solutions by providing reliable and secure data, establishing industry digital benchmarks, and driving collaborative innovation and digital transformation within the supply chain industry.

In February 2020, nine shipping carriers and terminal operators completed the signing of a shareholder agreement regarding their intention to become shareholders of GSBN. It is understood that GSBN will be formally established and put into operation after completing all regulatory approval procedures.

According to CargoSmart, once the GSBN blockchain alliance is officially established, the cargo release application will benefit every member of the alliance.

Reference materials:

"GSBN shareholders pilot innovative cargo release application in Shanghai" Source: CargoSmart

"Tesla Completes Blockchain Pilot to Speed ​​Up China's Import Process" Source: coindesk