Bulk liner G2 Ocean and emerging markets specialists Manuchar have announced the successful trial of CargoX’s blockchain-based Smart Bill of Lading (B/L) Solution, and in doing said the traditional bill of lading is “ready for retirement.”
According to a statement from G2 and Manuchar, the two companies concluded their test of the blockchain-based B/L system in April.
During the test, they transferred ownership of goods with shipments traveling from China to Peru. In total, five separate shipments were made from the Port of Tianjin on April 5, 2019, and reached Callao, Peru, 9,504 nautical miles away, on May 26.
The importer received the Smart B/Ls approximately two minutes after the journey finished instead of the usual days or even weeks it can take to send the same information as a hard copy via regular courier.
Leif Arne Strommen, Vice President of Innovation G2 Ocean, said the company will continue to pursue similar solutions.
“G2 Ocean consider Smart Contracts based on Distributed Ledgers or blockchain as a unique opportunity to digitalize and automate manual processes between its clients and subcontractors.
“The Bill of Lading is one of two priority areas in 2019 using blockchain technology. Based on these successful pilots, our next step will be to scale this up and offer it’s as a value-added service to our clients.”
As well as that, Bart Troubleyn, Chief Operating Officer, Manuchar, spoke of the importance of new technologies.
A recent Port Technology technical paper looked at blockchain's potential for increasing supply chain collaboration
“The implementation of new technologies is essential to establish and maintain our leading position in terms of cost-efficient sourcing & supply chain solutions for our customers.
“We focus on technologies that go beyond the hype and deliver real benefits in terms of speed, efficiency and the quality of service.
“That is exactly why this successful Smart B/L pilot is such an important next step in Manuchar’s digital transformation program: it provides real value. We thank G2 Ocean and CargoX for the excellent collaboration in achieving this success.”
Stefan Kukman, CEO and Founder of CargoX, praised G2 Ocean and Manuchar for the pilot and spoke of blockchain’s potential.
“G2 Ocean and Manuchar are among the most advanced companies in cargo shipping industry.
“They have recognized the potential of using tools of the future today – to secure trust, digitalize paper document processing, and reduce operating costs. All of this is obtained while investing minimally into the solution’s adoption.”