Why is Blockchain on the High Seas?

Technology plays a vital role in the evolution of the world. Trading has been the part of global business and economies across the globe. From the ancient time till trade, trading plays a crucial role in establishing the growth of the nation and its economy. Despite being such an integral part, it’s unfortunate that this industry has seen minimal technological revolution as compared to other industries. However, the latest swirl of Blockchain has taken the trading and shipping industry in its grip.  It is set to change the rules of the shipping industry and its time to bid adios to the plethora of paperwork associated with shipping.

One of the shipping giants, the A.P Moller-Maersk A/S, and other container shipping lines are coming together along with technology companies to upgrade their logistic network with a desire to streamline the process and quicken the pace of working of this industry.

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Why do we need a change?

Before heading to understand the need for this new technology, it is essential to understand, how this industry works and why do we need to bring the change?

Working in the Shipping Industry

Well, the functioning of the industry is simple; the shipping paper train starts when the cargo owner books space on the ship to move his goods to another place. The series of documentation begins from this moment. One needs to fill out the document before entering the port, and after the cargo departs the port. Even a single shipment may sometimes require the person to fill hundreds of pages manually. These papers and then send to many other agencies like the banks, customs department and other entities involved in the shipping process.

Problem Area-

A single shipment and a humongous task of filling millions of papers (pun intended) before sending it across have been the key reason that the industry is lagging behind. This is the primary reason that the shipping industry has not seen a breakneck pace of growth as compared to the other industries.

However, it’s not that the industry is still living in an archaic era, there have been transformations, and many new electronic methods have been devised which have speeded up the process. But as they say, that change is the only constant thing; it is time that the shipping industry also takes the much-awaited leap into the zone of the blockchain.

The blockchain is looked up as the new technological revolution which is going to change the way of doing the business. It is safe, secure, transparent, easily trackable and immutable. All these characteristics make blockchain the most wanted technological change.

The shipping industry can also make use of this digital electrical ledger. Apart from tracking the information, and shipping, blockchain can imbibe better communication, border administration which can further generate a revenue of $1 trillion in global trade, as per the World Economic Forum.

Recent Developments-

The use of blockchain in the shipping industry is not a myth anymore; instead, there has been some development on ground zero. APL Ltd along with Accenture Plc, Anheuser-Busch InBev NV has tested a blockchain-based platform.

Example : BitNautic: – It is a blockchain based shipping and cargo platform which is also known as DIPSI. This platform has the potential to bring together the air, land and ship cargo on one platform. It allows the traders, producers, and consumers to trade their goods globally. Thus, it can defiantly re-shape the current shipping industry. Irrespective of the industry size, one can use this platform to simplify and ease the process.

Hyundai Merchant Marine Co. from South Korea has tested blockchain based system developed by Samsung SDS Co.

The future of logistics

The key feature of blockchain is to create a decentralized system where all the information is easily accessible to the people in the network. When we talk about the shipping industry, then there are a  large number of brokers and a plethora of information. Currently, this industry mainly relies on paperwork with some digital intervention. However, there remains a significant area which is in dire need of transformation. The blockchain is that technology which can bring the technological transformation which can completely change the face and working of the shipping industry. From leveraging the smart contracts to tracking the shipment, blockchain has all the features which will make it as the catalyst for the growth of the shipping and freight industry.