Swiss freight-forwarder Fracht AG has established a partnership with CargoX, a blockchain company focusing on digitizing shipping documents, to use its Smart Bill of Lading (B/L) with customers.
The platform allows companies to issue and handle original B/L on the Ethereum blockchain network, facilitating the digital transfer of ownership – of bills of lading and related assets – between shippers, consignees and release agents.
With an increasing number of enterprises accepting that efficient logistics produces a decisive competitive advantage, Fracht AG will now become the latest user of technology that CargoX claims can deliver documents at a fraction of the current time and cost.
CargoX has also designed the digital, paperless bill of lading solution to target the areas of reliability and safety in shipping as paper-based transfer has many security downfalls.
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Commenting on the agreement, Ruedi Reisdorf, CEO of Fracht AG, said: “We always had the opinion that there would be a revolution in the digitalization of shipping, in communication and documentation, and therefore we thoroughly studied all the different aspects of digital online development.
“Blockchain is ‘the thing’, but in our opinion also only for some uses and not for everything in the world. It is very good for trade and one of the very best uses, if not the best, is the use for the Bill of Lading.
“And now we teamed up with, in our opinion, the best start-up, the one that will bring in blockchain in shipping and in the Bill of Lading – it is called CargoX.”
Stefan Kukman, CEO and Founder of CargoX, also made a statement: “Fracht is one of the companies we look up to, as they prove that change is the only constant in business. They are always looking at how to adapt to business, where to find new opportunities, and how to always keep in mind the global common good.
“It is very similar to the idea how we designed our solution – by looking at the whole picture and anticipating what the future will bring! Not just profits, but optimal workflows, new technologies, and a multitude of benefits, from speedier and safer document ownership transfer, to optimised financial flow.”