A blockchain startup, logistics companies and financial institutions in China have formed a ‘Blockchain Application Sub-Committee’ initiated by the China Federation of Logistics and Purchasing,

Founded during the 2016 Fintech Global Summit held on December 20, 2016, the Sub-Committee will look to develop and introduce blockchain technology in the logistics industry, a press release revealed. Local blockchain startup Shenzen Digital Singularity, also known as BitKan, will lead and organize the Sub-Committee to help set standards and rules of blockchain adoption, for the logistics industry.

Liu Yang, CEO of Shenzen Digital Singularity Ltd., sees blockchain’s core characteristics of immutability and accountability to have a telling impact on the logistics industry, one that is traditionally plagued with problems. Cargo shipping and delivery errors and subsequent losses are of the norm. Blockchain would help provide powerful tracing abilities to help reduce losses and increase operational transparency, Yang added.

The Sub-Committee intends to develop and promote blockchain technology in the industry by focusing on training businesses on the benefits of the innovation, blockchain-based company credit infrastructure and R&D standards for blockchain development in the industry. Ultimately, the initiative claims to aim for the ‘total upgrading and re-direction of the logistics supply-chain industry.”

Blockchain technology has already been put to use in the global cargo shipping industry. Developed and deployed by UK-based Marine Transport International Limited (MTI), the global shipping industry now has access to a public blockchain solution that enables global shipping companies around the world to connect to the supply chain.

Globally, the shipping industry is responsible for $4 trillion in cargo being moved every year and the application of blockchain technology could have a significant impact in the industry.

More recently, Australian blockchain startup Blockfreight revealed its end-to-end solution for the global cargo shipping industry, built on the Ethereum blockchain, powered by smart contracts.