Digitization is not only more current than ever, but the restrictions imposed by the COVID 19 pandemic have even more led to the optimal use of these technologies. This is like Blockchain technology is evolving and is adopted by many business areas.
In this sense, A statement announced that the Puerto Cartagena Group in Colombia has decided to register its two terminals for the TradeLens collaborative system, which is based on blockchain technology protected by software giant IBM.
This action gives the port company access to a supply chain and logistics network with data coverage of more than half of the global volume of container shipments.
TradeLens is a networked ecosystem of supply chain partners, including freight owners, sea and land transportation companies, freight forwarders and logistics service providers, ports and terminals, customs authorities and other industry players.
It also collects data from across the global supply chain ecosystem, including shippers, port operators, and shipping companies. The aim is also to modernize paper and manual documents and replace them with blockchain-enabled digital solutions.
The platform, which is executed on a matrix of authorizations and blockchain, avoids the linear process process step by step. This allows you to manage everything in one block and execute a large transaction that moves from one location to another, avoiding numerous steps.
“With the intervention of the Puerto Cartagena Group, it remains a current player in international trade and is at the forefront of major technological transformations and advances in major shipping lines,” the company said in the statement above.
The Puerto de Cartagena Group facilitates Colombian foreign trade and global connectivity, thus promoting socio-economic development not only in the region but also across the country. It represents a state-of-the-art platform in the Caribbean and offers port and logistics services for cargo and passenger ships. The productivity indicators are among the highest in the world.
Innovation is the spearhead in the constant effort to generate added value for freight and increase the competitiveness of its customers, their own company and the country in general.
It consists of sea terminals – Cartagena Port Society (SPRC) and Cartagena Container Terminal (Contecar) – and complementary companies that offer port operations and logistics services.
They also underline that the productivity and freight volume that is mobilized in the Puerto de Cartagena group have increased steadily in the last decade.. This growth has always been accompanied by the highest standards in terms of efficiency and quality, both for handling and for import and export goods.
IBM TradeLens blockchain platform
But … How did TradeLens come about? Maersk is one of the companies that has covered the most kilometers in its digital transformation, some experts agree. In August 2018, he presented with IBM one of the innovations that generated the industry’s greatest echo: the blockchain platform TradeLens.
This platform was developed from an IBM project for the shipping company and enables the actors in the maritime transport chain to exchange information and thus retrieve all data about the life cycle of a container. from the time it leaves the exporter’s house until it reaches the importer’s house.
In TradeLens, the various actors in the chain share information that cannot be manipulated thanks to blockchain technology and can also create other functions to use the data. It promotes a more efficient, predictable and secure exchange of information and promotes better collaboration and trust across the supply chain.
According to IBM, more than 50 ports and terminals in Latin America have connected to TradeLens, which also include shipping companies such as MSC. The company strives to include more importers and exporters.
Although the introduction of new technologies is an added value for maritime transport services today, the digital transformation is already a question of survival for many specialists.
Governments and shipping companies around the world have compelling reasons to modernize, digitize and integrate their systems and infrastructure. In particular, all the facts associated with bureaucratic delays, outdated and outdated procedures. With a combination or mix of digital and physical forms, world trade can be made easier for the global economy. Blockchain technology can be an essential part of such modernization.
Blockchain can help avoid unnecessary activities in the logistics process and provide information about companies and steps that may be responsible for unnecessary costs and delays in the global shipping industry.
Blockchain and its disruption in global shipping
The global shipping industry is battling high costs and high pollution. Blockchain technology can help solve both problems, reduce administrative costs, and provide environmentally friendly solutions. At the same time, the industry is protected from cybercrime and piracy and a fairer treatment is guaranteed for everyone involved.
One of the most promising parts of blockchain for the global shipping industry is its potential ability to eliminate paperwork. The document review process is time consuming, which in the worst case takes longer than the actual transport from the port of origin to the port of destination. This slows down the transport process and increases the price of goods.
Blockchain technology eliminates the routing of paper documents, speeds up the logistics of freight transfers, minimizes the risk of penalties for compliance with customs regulations for customers, and saves the maritime industry hundreds of millions of dollars annually.
Just as the advent of the container has changed global trade and shipping in recent decades, blockchain has a fundamental impact on the way the shipping industry approaches information exchange between parties.. Blockchain technology has the potential to change the way parties act and interact across the global shipping value chain and to open doors for new players worldwide.