Kuehne + Nagel will leverage the benefits of blockchain technology in a large-scale operational environment with 800,000 transactions per month while upgrading its verified gross mass (VGM) portal.
The global transport and logistics company’s enhanced solution will aim to improve the ease of doing business for shippers as well as the degree of transparency on the VGM status of all customer shipments and the history of persisted information.
All information submitted via the portal is stored on-chain, which allows for using native blockchain interfaces for data exchange with third parties, removing the need for additional off-chain communication channels.
Kuehne + Nagel said it designed the solution to “strictly fulfil industry requirements of confidentiality and data privacy”, adding to blockchain’s natural features of immutability and traceability.
The first version of the Kuehne + Nagel VGM Portal went live in 2016 to give shippers a convenient solution for filing their VGM declarations as being required for seafreight shipments in consequence of the International Convention for the Safety of Life at Sea (SOLAS).
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Martin Kolbe, Chief Information Officer Kuehne + Nagel International AG, said: “The list of promises related to the use of blockchain in the logistics industry is long, but actual real-world applications are hard to find.
“The Kuehne + Nagel VGM Portal solution jointly developed by our seafreight experts and our IT team allows us to get a true hands-on experience with blockchain technology in an on-premise production environment and with a high number of transactions.
“Our customers benefit from a tamper-proof solution for information exchange with third parties with improved efficiency and higher transparency.
“Kuehne + Nagel engages in a number of blockchain projects with customers, suppliers and governmental bodies addressing industry challenges in various domains, as the full potential of blockchain can only be exploited when collaboratively working together with business partners.
“Our involvement in a consortium engaged in the digitalization of bill of ladings for seafreight is the best example.
“Operating the VGM Portal on blockchain in an operational high volume environment delivers valuable learnings and expertise for the development of joint blockchain applications.”