In January 2019, a large carrier and local importer in Singapore was able to successfully complete a shipment using a blockchain electronic bill of lading system. The example showed the blockchain electronic bill of lading system was able to:
- Track the shipment of mandarin oranges from China in real-time
- Remove seven days transfer shipment documents processing time
Other benefits gained by using the blockchain electronic bill of lading system for this shipment included:
- Lower electricity costs as port refrigerated cargo containers usage was lessened while goods were waiting for collection
- Reduced port storage costs through shorter transfer times
- Cost savings from enhanced equipment utilization
- Stronger place of origin and tamper-proofing of documents helping to reduce fraud
- Improved traceable and real-time visibility of documents
Blockchain electronic bill of lading system proves a great success
Even more success for perishable goods
Companies that ship perishable items would benefit even more from this technology with its faster document processing and clearing of cargo. The shortened shipping times would:
- Increase opportunities for trade from farther away
- Reduce costs and spoilage for retailers
- Improve freshness and quality for consumers
This trial is an enormous step forward in creating massive efficiency, improved security and increasing opportunities for international shipping.
Why was this blockchain electronic bill of lading system trial so significant?
This trial is particularly significant because the Bill of Lading is one of the most crucial documents used in international trade. It is typically issued by a carrier to document the title or ownership of goods. The Bill of Lading also acts as both a shipment contract and goods receipt.
Overcoming complexity
To successfully complete a shipment using a blockchain system means it has been able to navigate and execute a very complex legal transaction. That, however, is only part of the success story.
Instant processing
Current administrative processes required to transfer the title deed take from five to seven days to execute. The blockchain electronic bill of lading system with automated document handling makes the digital transfer of cargo instant!
Improved security
The inherent cryptographic nature of blockchain technology means that Bill of Lading transactions are greatly improved. This will help reduce international shipping document fraud, which currently comprises 40% of all maritime fraud.
It is easy to see how this will make for faster and more efficient delivery of goods. The trial has shown how the international shipping process can be simplified, more transparent, more secure, and with significantly reduced costs.
Big players in blockchain electronic bill of lading system development
The trial was for an import of 108,000 of mandarin oranges in 1,500 cartons from China and involved several major industrial players, including:
- Hupco, led by Chairman and CEO, Tay Khiam Back, as Importer
- Pacific International Lines, led by Executive Director, Lisa Teo, as Carrier
- IBM Asia Pacific, led by CEO and Chairman, Harriet Green, as Software Developer
Carrier – Pacific International Lines
Pacific International Lines is the one of the world’s largest container ship operators, owning one of the largest fleets in Southeast Asia. The company has the following impressive statistics:
- Owns and operates 180 vessels
- Services over 500 ports
- Operates in 100 countries
Pacific International Lines is made up of several integrated businesses covering the following industrial sectors:
- Logistics and depot services
- Ship container manufacturing
- Marine services and ship recycling
- Real estate and property development
Software developer – IBM
IBM is one of the world’s largest software developers and a leader in enterprise level open-source blockchain solutions. The company has dedicated much research, technical and business expertise to advance blockchain development including:
- Achieved a dramatic reduction in transaction processing speeds
- Developed the most advanced cryptography to secure transactions
- Contributed millions of open source code lines
Since 2016, IBM has worked with scores of clients to implement a number of networks running blockchain applications to business sectors such as:
- Financial services
- Supply chain
- Government
- Retail
- Digital rights management
- Healthcare
IBM is a proud member of Hyperledger, an open source collaborative movement to advance cross-industry blockchain technologies.
More trails coming
Similar trials using blockchain systems are in progress for shipping between Singapore and Brunei with a negotiable electronic Bill of Lading. The key players participating including Bank of China Limited Singapore Branch (BOC).
Need assistance with international shipping?
The news is still good for those not using a blockchain electronic bill of lading system. If you are having trouble with your international shipping then let the team at Freight Forwarder Quote Online help with your international shipping. We offer a full range of international shipping services and are confident we can give you the help you need.
Our global freight network has more than 40,000 locations worldwide and we provide full-costing upfront international shipping with no hidden costs. Our international shipping service is fast, lean and transparent, so contact us online and send a message. You can even message us on Facebook for help on international shipping.
