Blockchain has finally dipped its toes in the salt water and has found entry into the shipping sector. A leading UK port operator, Associated British Ports (ABP), is behind the integration of blockchain in this previously unchartered industry for the technology. ABP has recently sealed the deal with Marine Transport International, which is a comany that deals in digital logistics. The agreement signed refers to the development of a new blockchain for port logistics.
The growing need for a system like this was quite evident for ABP since each party in ABP’s supply chain has nothing to connect them to the others. Different systems are used by the port operators, carriers, and shippers and there is no homogeneity.
ABP is a huge company that operates in 21 ports and is responsible for 25 percent of the cargo shipments in England. Blockchain technology could make their logistics process, much more convenient. According to the agreement signed with Marine Transport International, they are soon to begin pilot shipments via blockchain technology.
Jody Cleworth, founder and CEO of Marine Transport International, said:
“With blockchain, we can connect all those systems to ensure data is accurately and quickly shared, helping speed-up and simplify the flow of trade in and out of the UK.”
It is not just Great Britain that has shown signs of blockchain integration in the shipping sector. A subsidiary of Abu Dhabi ports has launched a national blockchain solution to its logistical process. Blockchain technology has also been used to register ships in local ship registers in Denmark.
It is undeniable that blockchain has contributed to making logistics smoother in many industries across the world. Few notable examples being FedEx and Walmart who have started using blockchain to track shipments.