While ocean shipping has been steadily growing in recent years, multiple pressures are impacting the predictability of the far-flung supply chains and pressuring industry profits. Key to navigating these challenges for shippers, ocean carriers, terminal operators, and other parties involved with shipping ocean freight is better visibility and real-time access to information.
That’s a challenge given the sheer number of participants in a single shipment—and often leads to delays, disputes, and significant extra costs for shippers and carriers. But things are changing thanks to the help of emerging technology and the formation of a new blockchain consortium in this space pioneered by CargoSmart.
For the last year, CargoSmart and Oracle have been working together to develop a blockchain solution that aims to simplify the shipping documentation process and deliver a single source of truth for trusted, real-time sharing of information, thereby increasing trust and boosting efficiency.
More recently, CargoSmart announced a significant milestone in forming the Global Shipping Business Network (GSBN) blockchain consortium. Comprising of nine leading ocean carriers and terminal operators: CMA CGM, COSCO SHIPPING Lines, COSCO SHIPPING Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International, and Shanghai International Port Group. This not-for-profit joint venture aims to accelerate the digital transformation of the shipping industry, with CargoSmart providing the resources underpinning it.
“The close cooperation between our R&D group and Oracle’s blockchain team has already helped to accelerate the development of some pilot applications. By leveraging Oracle’s enriched technical support and advice, CargoSmart has been able to achieve high levels of operational capability, reduce R&D time, and significantly improve the productivity of its blockchain application developers,” said Romney Wong, Chief Technology Officer of CargoSmart.