A Korean blockchain consortium focused on the shipping logistics industry has successfully completed its first trial run.
Established by Samsung SDS, the IT and technology provider for electronics behemoth Samsung, a consortium comprising of government agencies, port operators and shipping giants and logistics companies took shape in May. AS reported by CCN at the time, the consortium began working on a blockchain platform that will track imports, exports and location of cargo shipments in real-time. The consortium’s lofty goal saw the intent to launch a pilot project for “all exports and imports by the end of this year.”
In wasting little time, the consortium has now completed a shipment delivery from Korea to China using the innovative technology, a report Korea Joongang Daily reveals.
Details from the report reveal that the entire process – booking the shipment in Korea to delivering the cargo in China – was facilitated by a blockchain. While details are scarce, the early trial saw freighter Hyundai Merchant Marine install sensors on reefer containers (shipping containers with product sensitive to temperature variations), enabling multiple parties in the supply chain to monitor the container in real time.
Certificate of origin & customs clearance documents were also encrypted and recorded on the decentralized ledger, which led to an overall reduction in paperwork and increased efficiency between shipping companies, port operators and cargo owners.
Kim Hung-tae, executive vice president at Samsung SDS stated:
Top-notch technologies like blockchain and Internet of Things [for container sensors] will be a game changer for the traditional logistics business.
As reported by CCN earlier in April, Samsung SDS launched its enterprise-ready blockchain platform Nexledger. Korea, which is home to some of the world’s largest shipping ports, could see its shipping industry among the earliest adopters of blockchain technology – an innovation that could be the core component of a game-changing tech for the industry. The consortium’s members include the likes of the Korea Customs Service, Korea’s Ministry of Oceans and Fisheries and IBM Korea, among others.
The consortium further added that it hopes to expand its blockchain endeavor to finance and insurance providers linked with shipping and logistics while expanding trials on longer maritime trade routes to Southeast Asia, the Middle East and Europe.
Earlier this year, Maersk – the world’s largest ocean container shipper – partnered IBM to implement blockchain technology for its supply chain process. IBM is also helping the government of Dubai to launch a blockchain initiative for trade finance. In Singapore, one of the world’s busiest shipping ports, IBM is helping two maritime giants to trial blockchain for supply chain networks in the region.
Featured image from Shutterstock.Follow us on Telegram.