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Two of The Biggest Shipping Groups Joins Hand With Maersk Led Blockchain Platform

Maersk, the world’s largest shipping company which has recently launched a blockchain based platform called TradeLens which is focused on improving the complicated Shipping container industry. The aim is to streamline the working efficiency by cutting down tons of paperwork and also improve upon delivering on time. Maersk has joined hands with two of the largest shipping groups in the form of Mediterranean Shipping Co (MSC) and CMA CGM.

The platform would be tracking nearly 90% of the traded goods worldwide using blockchain and two shipping partners. A total of more than 100 companies, ports or authorities, such as Procter & Gamble and U.S. Customs and Border Protection, have signed up for the platform led by Copenhagen-based Maersk, the world’s largest container shipping company.

Maersk was launched last year with the collaboration of IBM, and it is being seen as a crucial step towards cutting the high costs in the shipping industry, which has not seen any significant advancements in terms of innovation, ever since its inception in the 1950s.

Vincent Clerc, the Executive Vice President at Maersk said,

“Still, lots of processes in our industry actually predate the container. Even today customers live with the administrative burden of having to maintain the huge amount of paperwork and not having visibility of what is happening with their goods”

The blockchain platform TradeLens would help the customers, clients shipping lines, freight forwarders, port authorities, and customs authorities to manage the large trail of paperwork by digitizing the process and putting it on a blockchain based database. The platform would be powered by Bitcoin, while the database can be shared across a network of individual computers.

Shipping containers are responsible for carrying out $4 trillion worth of goods which is equivalent to 80% of the daily use items though sea. Maersk claims that once the platform becomes fully operational, it can help in cutting a significant amount of the administrative cost. Especially the paperwork which is responsible for 20% of the total paperwork.