A Hong Kong-based company is utilizing the blockchain by launching its own digital currency in an attempt to improve the security of the container shipping industry in how its paying for services.
Hong Kong-based 300cubits has started to distributed its TEU token to prevent overbookings and shipper no-shows, according to Port Technology.
By issuing the token, it’s hoped that it will remove the trust factor within the shipping industry when needing to make secure deposits for bookings. Interestingly, enough, once the TEU tokens have been used to book a shipment and the customer fails to turn up with the cargo or a carrier doesn’t load the cargo, then they could lose the value of the TEU tokens.
At present, the shipping industry booking process creates $23 billion of yearly wastage. It’s hoped that the implementation of the TEU ecosystem into the shipping industry will cut down on the costs of no-shows and overbookings.
The founders of 300cubits said:
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.
This isn’t the first time that the container shipping industry has employed innovative technology to improve its services.
Last September, it was reported that Blockfreight, designed as the first end-to-end blockchain solution for the global cargo shipping industry, had launched a token sale to increase market access and build financial strength in global trade.
Whereas, in May it was announced that Korea’s shipping industry could be revolutionized by the blockchain technology by the end of 2017.
Through the launch of a pilot blockchain project, Samsung SDS, the IT subsidiary and technology provider for electronics giant Samsung, will look at Korea’s shipping logistics industry to track exports, imports and the location of cargo shipments in real-time through the blockchain.
At the time, a spokesperson for Korea Customs Service said:
When this pilot project is established successfully, this will simplify customs clearance of companies and save logistics costs.
Featured image from Shutterstock.