300cubits, one of the first companies to focus on the use of blockchain applications for the container shipping industry, has signed up members of Coopernic Group to its blockchain Shipper Sign-Up Scheme.
Coopernic Group is a European-based strategic buying alliance of four independent trading companies, covering 21 countries, with a total turnover of US$ 163 billion (132 billion euros).
The scheme employs blockchain and its own cryptocurrency, the TEU token, to tackle no-shows.
This is a persistent pain point impacting the container shipping industry as customers who book without paying in advance are not facing any consequences when they waste shipment space aboard vessels by not delivering cargo.
Read a paper by Karim Jabbar, Department of Computer Science, University of Copenhagen, and Deanna MacDonald, CEO, Blockchain Labs for Open Collaboration, on the opportunities for the use of container streams as an interoperable blockchain-enabled, DLT-based system for the shipping industry
The consensus among industry participants says that 25-30% of bookings do not lead to a shipment due to no-shows.
Its TEU tokens have been designed as a digital shipping booking deposit to ensure customers follow through on their booking.
Since the project was launched on August 1, 2017, 300cubits have minted 100 million TEU tokens.
These will be used as booking deposit through the Booking Deposit Module, a cloud-based system built on blockchain.
The Booking Deposit Module will go live on 15 June 2018.
Stefan Blickensdörfer, Managing Director, SRTS Europe (a strategic partner of members of Coopernic Group), said: “We and some members of the Coopernic Group are of course interested in constantly optimizing the supply chain.
“Among other things, this includes minimizing the high number of no-shows on the part of the shippers and roll-over on the part of the shipping companies.
“Against this background, the innovative system of 300cubits is interesting for us as a network.”
Watch an interview with 300cubits Co-Founder Johnson Leung on Bloomberg News: