A new blockchain-based technology is making a move to revolutionize the way in which the container shipping industry is paying for services by introducing a cryptocurrency into the market.
Hong Kong-based 300cubits has begun distributing its ‘TEU’ token, named after the standardised container measurement, to ocean shipping lines and shippers as a solution to overbooking and shipper no-shows.
The cryptocurrency aims to remove the need for trust by securing deposits for shipment bookings and allow users to penalize bad behavior, acting as a container shipping Bitcoin — the currency used in blockchain transactions to provide greater visibility into transactions.
According to a 300cubits white paper, once TEU tokens are used to book shipment their value could be lost if a customer does not turn up with cargo or a carrier does not load cargo according to a confirmed booking.
In a public announcement, the Founders of 300cubits stated: “To start, we will promote TEU tokens as the deposit for the shipment booking process, which creates $23 billion annual wastage today.
“Unlike ticket booking in airlines, customers in container shipping do not bear any consequence for not showing up for bookings.
“A TEU ecosystem will be developed to help seamlessly implement TEU tokens into the daily operation of the industry.”
“Going forward, TEU tokens could also provide better foresight and a hedging tool to tackle the volatility of the container shipping cycle.
“We see TEU tokens could become the de facto crypto currency for the container shipping industry.”
