“To reach a port, we must set sail. Sail, not tie at anchor. Sail, not drift.” — Franklin D. Roosevelt.
The wide-ranging benefits of blockchain and emerging technology are revolutionizing the shipping, cargo, and marine industry:
Blockchain as a solution in shipping and logistics has been nullifying some of the issues that have been plaguing the industry for decades; ranging from administrative efficiency, order tracking to regulations in the sector.
Transactions in the maritime industry usually involve a very large number of stakeholders across the globe. This leads to a large number of data points being generated. Blockchain technology can provide a platform for sharing data with accurate permission controls & transparency amongst stakeholders who have visibility of the data.
Cross border transactions require a high degree of trust. Evidence based milestones require third party oversight as most data happens onboard ships. Digitised Transfer of titles & custody of cargo provide a higher level of confidence as they execute automatically on basis of payments, instructions or events that are legally pre-agreed/programmed.
Blockchain cryptography’s key management advantage is the transparency of the process. The technology uses a timestamp which cannot be changed, unlike a database and can provide means to link customer, order, carrier, payment in real-time with status.
The process of trade transactions has been tricky in all supply chain finance. Technology is seen by many as an interesting tool to improve the security of traditional trade finance transactions and to streamline and digitalize processes. Blockchain can track possession of package, auto-verify identity and verify the chain of custody.