Blockchain based bills of lading making rapid progress
Another one bites the dust.. By this I mean another shipper that is moving away from Paper Bill of Lading..
It is inevitable that influential shippers and shipping lines are embracing digital technology one after the other..
Whether it is India’s first blockchain enabled Letter of Credit transaction, the first smart bill of lading issued using blockchain or the first blockchain based coffee exchange, technological innovations are here to stay in the shipping and freight industry..
G2 Ocean and Manuchar became the latest partnership to move away from Paper Bill of Lading after they completed a successful pilot trial of CargoX’s blockchain-based Smart Bill of Lading Solution..
The various benefits and uses of blockchain have been discussed at length on this blog, so I won’t go into those details again..
Although the digital world is progressing fast, the paper bill of lading is still quite active in the industry.. However, the adaptation of such technologies by the trade, proves that the paper bill of lading could be on its way out slowly but..
As per Rune Birkeland, CEO at G2 Ocean, “Paper Bills of Lading are already considered a historic artifact. The Smart B/L™ solution gives both us and our clients the power of a modern, reliable, and efficient tool. It will bring cost optimization and improved data security into their processes. The document transaction reliability in this system is undisputable.”
During the test of the CargoX Smart B/L™ the two companies transferred ownership of goods on shipments traveling from China to Peru..
This is a quick and cost-effective solution involving digital transfer of Bills of Lading issued worldwide.. The system completes the document ownership transfer securely and reliably within minutes as opposed to the days or weeks it takes to send a document via regular courier services and conventional methods..
This new approach prevents delays, business damage or loss, demurrage and other costs while also providing safety, security and reliability never before experienced in the morning business world..
Since it started with its Smart Bill of Lading options, CargoX have completed five separate pilot shipments involving Smart Bills of Lading…
The documentary process involving a bill of lading on a shipment travelling a distance of 9,504 nautical miles between Xingang in China and Callao in Peru was covered within a couple of minutes when the importer received the Smart B/L a couple of minutes after the sailing of the vessel..
If this doesn’t bring the world that much closer, I don’t know what else can..
Commenting on this unique move, Leif Arne Strømmen, Vice President of Innovation G2 Ocean commented that “G2 Ocean consider Smart Contracts based on Distributed Ledgers or blockchain as a unique opportunity to digitalize and automate manual processes between its clients and subcontractors. The Bill of Lading is one of two priority areas in 2019 using blockchain technology. Based on these successful pilots, our next step will be to scale this up and offer it’s as a value-added service to our clients.”
“The implementation of new technologies is essential to establish and maintain our leading position in terms of cost-efficient sourcing & supply chain solutions for our customers.
We focus on technologies that go beyond the hype and deliver real benefits in terms of speed, efficiency and the quality of service. That is exactly why this successful Smart B/L pilot is such an important next step in Manuchar’s digital transformation program: it provides real value.
We thank G2 Ocean and CargoX for the excellent collaboration in achieving this success.” Bart Troubleyn, COO of Manuchar stated..
The solution is powered by the Blockchain Document Transaction System (BDTS) technology.. Compared to classic IT systems, the CargoX Smart B/L™ enables users to clearly state and transfer ownership, create Bills of Lading, and also attach other accompanying documentation in electronic format..
Documents can be transacted among parties to a specific process in a way similar to a banking transaction. They can also be amended or annulled if needed to..
“G2 Ocean and Manuchar are among the most advanced companies in cargo shipping industry. They have recognized the potential of using tools of the future today – to secure trust, digitalize paper document processing, and reduce operating costs. All of this is obtained while investing minimally into the solution’s adoption,” said Stefan Kukman, CEO and founder of CargoX.
“We will thank Manuchar for their open mind and eagerness to test out this new technology. We look forward to further develop and digitalize our joint manual processes. That will change the way trade is being done and at the same time secure trust and reduce operating costs,” said Leif Arne Strømmen, of G2 Ocean..
With all these technological options available, It is no wonder that the line between the services that digital freight forwarders can provide vs digital shipping lines is quite blurred.. The best is yet to come though and am sure its capabilities will leave us all gasping for breath..