21 July 2017
visit www.avoka.com

IBM and Maersk advance blockchain project for global trade

06 March 2017  |  8819 views  |  0 globe

IBM and transport and logistics outfit Maersk have unveiled a blockchain-based cross-border supply chain programme to manage and track the paper trail of tens of millions of shipping containers across the world.

Based on the Hyperledger Fabric, the initiative will see IBM and Maersk work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities in a bid to save the industry billion of dollars in costs from manual interventions.

The partners say the digitised process is designed to help reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost. Maersk found in 2014 that just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organisations, including more than 200 different interactions and communications among them.

The costs associated with trade documentation processing and administration are estimated to be up to one-fifth the actual physical transportation costs. A single vessel can carry thousands of shipments, and on top of the costs to move the paperwork, the documentation to support it can be delayed, lost or misplaced, leading to further complications.

The system, which connects all participants to a shipment on a permissioned blockchain, has already been tested in the transportation of goods from Schneider Electric on a Maersk Line container vessel from the Port of Rotterdam to the Port of Newark in a pilot under an EU research project. The international shipment of flowers to Royal FloraHolland from Kenya, Mandarin oranges from California, and pineapples from Colombia were also used to validate the service for shipments coming into the Port of Rotterdam.



Ibrahim Gokcen, chief digital officer, Maersk, says: “The projects we are doing with IBM aim at exploring a disruptive technology such as blockchain to solve real customer problems and create new innovative business models for the entire industry. We expect the solutions we are working on will not only reduce the cost of goods for consumers, but also make global trade more accessible to a much larger number of players from both emerging and developed countries.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

IBM and Dubai Government initiate blockchain logistics initiative

IBM and Dubai Government initiate blockchain logistics initiative

07 February 2017  |  12877 views  |  0 comments | 8 tweets | 9 linkedin
Seven banks plan blockchain platform for SMEs

Seven banks plan blockchain platform for SMEs

16 January 2017  |  18970 views  |  0 comments | 54 tweets | 54 linkedin
CBA and Wells Fargo combine blockchain and IoT to revolutionise trade finance

CBA and Wells Fargo combine blockchain and IoT to revolutionise trade finance

24 October 2016  |  15215 views  |  2 comments | 32 tweets | 35 linkedin
Emirates NBD and Icici demo blockchain application for trade finance

Emirates NBD and Icici demo blockchain application for trade finance

12 October 2016  |  7416 views  |  1 comments | 6 tweets | 15 linkedin
Microsoft takes it own blockchain medicine in trade finance deployment

Microsoft takes it own blockchain medicine in trade finance deployment

27 September 2016  |  8390 views  |  0 comments | 15 tweets | 29 linkedin
Bank consortia look to distributed ledgers and smart contracts to rewire trade finance

Bank consortia look to distributed ledgers and smart contracts to rewire trade finance

10 August 2016  |  21037 views  |  2 comments | 53 tweets | 57 linkedin
Trade finance first to be disrupted by Internet of Things say bank CIOs

Trade finance first to be disrupted by Internet of Things say bank CIOs

13 October 2015  |  12111 views  |  0 comments | 24 tweets | 20 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.www.fisglobal.comvisit www.ncr.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
12481 views comments | 19 tweets | 15 linkedin
EPC gears up for pan-European instant paymentsEPC gears up for pan-European instant paym...
9739 views comments | 10 tweets | 28 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
8575 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
7761 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
7615 views 0 | 5 tweets | 16 linkedin