A container shipping blockchain consortium has moved forward after signing service agreements with major shipping lines and ports
Shipment management software solutions provider CargoSmart has executed Global Shipping Business Network (GSBN) services agreements with CMA CGM, COSCO Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group.
Under these agreements, each company commits to provide resources to support preparatory work required to establish the GSBN, a not-for-profit joint venture that aims to accelerate the digital transformation of the shipping industry. That preparatory work includes obtaining all necessary regulatory, competition and antitrust approvals required to establish GSBN. CargoSmart will provide software solutions and services to the GSBN once it is formed.
CMA CGM Group executive vice president IT and transformations Rajesh Krishnamurthy said, “In line with our customer centric and digital first approach, the CMA CGM Group is committed to facilitate increased transparency and to spur innovation with the entire supply chain ecosystem. The GSBN blockchain consortium provides us a concrete opportunity to bring greater value for our customers and the supply chain as a whole.”
Hapag-Lloyd managing director IT technology Martin Gnass added, “We are focused on offering our customers the best choices for their supply chain needs. Once it is established, the GSBN will work, with its JV structure and strong carrier and terminal participation, to increase efficiency in cross-network operation for the benefit of the various stakeholders in our industry.”
Upon its establishment, the GSBN intends to provide a platform for all shipping supply chain participants to work collaboratively to accelerate technology innovation and develop solutions through trusted and secure data exchange platforms.
CargoSmart explained that as part of the preparatory work required to set up the GSBN, “the signatories plan to establish strong data management and governance frameworks that will apply once the GSBN is formed, including the principle that participants should retain control over their data being shared through the GSBN”.
Upon its establishment, it is envisioned that GSBN will provide shipment visibility and transparency through a trusted data source. CargoSmart added “In addition to establishing a data governance framework, once it is formed the GSBN will also consider and lead the development of a roadmap of use cases, data access APIs and applications”.
The signatories of the GSBN services agreements plan to establish the GSBN in early 2020, subject to obtaining all requisite anti-trust, competition and regulatory approvals. CargoSmart said it will run pilot applications that test the viability of the GSBN and the potential for the GSBN to offer value to supply chain participants. It said initial preparatory efforts to explore and test the feasibility and value of using blockchain technologies are underway and showing promise.