HONG KONG's Modern Terminals Limited (MTL) and Singapore's PSA International have signed on to blockchain cargo documentation systems to speed delivery and reduce fraud.
#MTL has become a participant of TradeLens, a blockchain platform developed by Maersk and computer giant IBM, now expected to become operational in a month's time, reports the South China Morning Post.
"That is the Holy Grail ?one place to see the whole supply chain in one spot," said MTL managing director Peter Levesque.
Singapore's Crimson Logic blockchain system now counts PSA International - operator of the city state’s container port as a 45 per cent shareholder. It is developing Global eTrade Services (GeTS) blockchain to integrate supply chains and documentation.
"Our partners in China are also working with us to help the supply chain and logistics players along the Southern Transport Corridor to make cross-border trade easier, more predictable and accessible," said Chong Kok Keong, chief executive of GeTS, adding that the solution is aimed at developing trade links between China, Singapore and the Association of Southeast Asian Nations (Asean). "We want to be in a position to serve this segment of the trade flow."
Modern Terminals chose to join TradeLens because of the vast network operated by Maersk, which accounts for more than 19 per cent of global shipping after its acquisition last year of Hamburg Sud.
The blockchain network is adding two members every week, with 105 at last count in October, including shipping companies, terminal and port operators and customs departments.
As estimated one million ship movements are captured everyday in the system, with nearly 240 million customs releases, invoices and bills of lading on the system as of November 23, said Maersk.
The problem with TradeLens is that it is the preserve of Maersk, and is therefore unusable to other shippers, said Hapag-Lloyd CEO Rolf Habben.
To ease concerns, Maersk convened a meeting of technology executives of Maersk, CMA-CGM, Hapag-Lloyd, the Mediterranean Shipping Company (MSC) and Ocean Network Express on November 15 to create an industry standard for shipping lines.