Blockchain Labs for Open Collaboration (BLOC) has announced the creation of a consortium to explore how the marine fuel supply chain can become more transparent and efficient.
The consortium will be run through BLOC’s subsidiary Maritime Blockchain Labs (MBL), and includes Lloyd’s Register, Precious Shipping, Bostomor, the International Bunker Industry Association (IBIA) and GoodFuels, all of whom represent a different link in the marine fuel supply chain.
Deanna MacDonald, CEO and Co-Founder of BLOC, commented on the deal: “MBL takes an industry-led approach – meaning that the solutions will be identified, designed, and tested by the industry itself, with MBL facilitating governance and developing the technology to ensure these solutions are relevant and used.
“A consortium approach is essential due to the need to cross regulatory boundaries and work within different organizational bodies and systems.
“Too often with blockchain, and digital initiatives in shipping in general, we see a top-down approach where new technology is pushed on the industry. However, this means that complex human and governance elements are ignored, limiting the eventual adoption and usefulness of the technology.”
Katherine Foster, BLOC's Chief Strategy Officer, will be a speaker at Port Technology's Smart Ports and Supply chains Conference (#SPSC18)
Khalid Hashim, Managing Director of Precious Shipping, said: “As an off-taker of marine fuels, it’s vital for us to ensure that the fuel we use is compliant – particularly when we think about the market post-2020, and the need to ensure the quality of blended products coming in to meet the 0.5% Sulphur limit.
“Blockchain is ideally placed to create the reliable chain of custody we need to do this.”
Read more about BLOC's work is changing the maritime sector by reading a Port Technology technical paper
Grant Hunter, Head of Contracts and Clauses at BIMCO, added: “We are delighted to be involved with a consortium that could play an important role in realizing the transformative potential of blockchain within shipping, beginning with a timely and relevant first use case in the bunker industry.
“As the global leaders in the development of standard contracts and clauses used in shipping, we feel we have an essential role to play in investigating the use of new technologies that may help evolve the way contracts are used.
“Bunker purchase contracts are one part of a complex chain of activities in the bunker industry. Blockchain “Smart Contracts” based on harmonized terms and conditions like the BIMCO Bunker Terms 2018 could be a stepping stone for the industry to achieve greater transparency and efficiency.”