IBM (NYSE:IBM) and Maersk came together in August to develop TradeLens, a blockchain shipping solution. At the time of launching, over 90 organizations were part of the community. Modern Terminals is the newest member of that blockchain shipping database.
TradeLens leverages blockchain to streamline global trade while securing cargo during transit. Further, the solution facilitates sharing of information among various players in the shipping industry. However, the most important aspect of TradeLens is that it upholds transparency in the industry.
The blockchain shipping database to facilitate transparent operations
Particularly, all parties on the blockchain shipping database can view tracking information during the transportation process. In essence, they will be able to view information such as shipment arrival times and documents such as customs releases, commercial invoices and bills of lading in near real time.
Speaking to the South China Morning Post, Modern Terminals’ managing director Peter Levesque believes TradeLens is the real deal. Levesque further insists that the platform is a very important aspect of the future of shipping.
“That is the Holy Grail – one place to see the whole [supply chain] in one spot. The platform would be the single system that shippers, freight forwarders, imports and terminal operators can all work with.”
AP Moeller-Maersk Group is the largest shipping firm in the world with over 90% of market share. So far, the company has taken part in many projects that will define the future of shipping.
More solutions coming
Interestingly, the company is so dominant that other players fear it will monopolize the whole industry. The TradeLens will roll out in the coming months.
The shipping solution takes papers out of the daily operations that facilitate shipping. Therefore, the industry will virtually go paperless if it adopts the solution. TradeLens is interested in increasing blockchain-based solutions that seek to facilitate smooth shipping operations globally. Global eTrade Services (GeTS) is another alternative with a similar aim to TradeLens.