Kerry Logistics, Deloitte and CargoSmart have successfully connected multiple distributed ledger technology (DLT) networks, as part of a joint-venture initiative to boost the efficiency of the shipping industry.
The formation of a platform which digitizes the exchange of shipping documents between forwarders and carriers, making them more traceable, is also expected to increase the transparency of the maritime sector.
The platform’s proof-of-concept (POC), which was completed in December 2018, is interoperable across different DLT and cloud networks commonly used by participants in global trade and finance.
Wilson Lee, Group Director of Information Technology at Kerry Logistics, commented: “Distributed ledger is a technology that could simplify the complicated transactions in logistics operations.
“When we eliminate redundant processes, we can bring new benefits to our customers and to the planet, which has always been one of Kerry Logistics’ beliefs.”
According to Kerry Logistics, blockchain is an optimal solution for improving the global supply chain and will define the shipping industry’s next digital age.
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Dr. Paul Sin, Blockchain Lab Leader at Deloitte, also made a statement: “A healthy logistics ecosystem is paramount in global trade, but complicated documentation has been a structural problem.
“Document digitalisation is not just the first step, but also a groundbreaking step in the transformation of the logistics industry.”
As well as coordinating the exchange of documents, DLT networks speed up the approval process and provide secure data that supports informed decision-making.
Dean Croke has discussed what blockchain could mean for logistics in a recent Port Technology technical paper
Lionel Louie, Chief Commercial Officer of CargoSmart, added: “CargoSmart is excited to work collaboratively with Deloitte and Kerry Logistics to bridge the gap between the shipping and finance industries by utilising distributed ledger technology.
“In this project, we proved the network-to-network interoperability and demonstrated the cross-industry collaboration.”
The three parties have agreed to drive innovation together, through technology, to create value for customers and facilitate the digital transformation of ocean shipping and logistics.