GoodFuels Marine, a supplier of low carbon marine fuels, has worked with Blockchain Labs for Open Collaboration (BLOC) to complete the world’s first bunker delivery and transaction using blockchain.
The delivery, a ‘landmark moment for the shipping industry’ according to a statement by GoodFuels, was made to a Samskip vessel in Rotterdam on September 7, 2018.
Unlike traditional bunker delivery notes (BDN), a paper document still widely used, blockchain provides end to-end traceability of marine bunkering transactions from storage, to the barge or jetty, and on to the vessel’s fuel tank.
This provides increased assurance to shipowners, shippers and charterers, who benefit from a decentralised, distributed and public digital ledger.
Katherine Foster, BLOC's Chief Strategy Officer, will be a speaker at Port Technology's Smart Ports and Supply Chain Technologies Conference (#SPSC18)
This is also the first transaction for Maritime Blockchain Labs (MBL), an initiative by BLOC which comprises several pilot projects conducted in collaboration with blockchain practitioners and industry actors.
In addition to this, the event marked the first sustainable low carbon marine fuel delivery as part of the GoodShipping Program, a part of MBL.
The GoodShipping Program requires shippers to commit to a reduction in their sea freight CO2 emissions by purchasing sustainable biofuels.
Read more about BLOC's work is changing the maritime sector by reading a Port Technology technical paper
Dirk Kronemeijer, CEO and Founder of GoodFuels Marine, said: “For too long shipping has been reliant upon paper transaction notes when bunkering, which expose shipowners, shippers and charterers to the potential of being misled on the quality and quantity of fuel.
“At GoodFuels, we are always striving to break convention – not for the sake of it, but because in this era there is no technological barrier to providing customers better assurance.
Deanna McDonald, CEO of BLOC, added: “This project not only allows us to validate the value of blockchain technology in the marine fuels supply chain, but also to identify incentives to ensure that users input correct information into systems, and that any technology and systems created can be used as widely as possible.
“The bunker industry – with its multiple large volume transactions, and history of fraudulent claims – provides an ideal platform to examine where blockchain’s digital platform can be utilised to increase transparency, and create better compliance and strong governance.”