Shipping Industry Explores Blockchain Application

Experts in the shipping and logistics industries weighed the benefits of integrating blockchain in their sectors at a forum in Shanghai.

Experts in the shipping and logistics industries recently convened in China for the fifth International Shipping and Internet Summit to discuss ways of applying blockchain in their business, the China Daily reports.

More than 200 local and foreign entrepreneurs gathered in Shanghai, where they talked about the exponential growth of blockchain and potential uses of the technology in their field. Blockchain, the distributed ledger technology created in 2008 to underpin Bitcoin, is showing great promise in payment systems and cryptocurrency is also gaining acceptance as a payment method.

Digital transformation of the shipping industry

At the Shanghai summit, participants discussed the digitization of the shipping industry, as well as the prevention of internet risks in shipping, big data, and the potential synergy between shipping and blockchain.

The business model of the maritime industry would evolve in line with the digital world once it has embraced new technologies such as cloud computing, artificial intelligence, and blockchain, according to Huang Jin, vice-president of DNV GL, an internally accredited registrar and shipping classification society.

Digitizing the maritime sector would boost the efficiency of shipping companies because it would eliminate their dependence on intermediaries.

Lian Min, whose 300cubits was the first shipping blockchain company in the world, said that using its TEU cryptocurrency would reduce some of the economic pressures on shipping investors, going on to add that blockchain could be effective in solving some of the industry’s internal problems, such as booking deposits and breach of contracts.

In a recent interview for Cryptovest, Shiptek Solutions founder and CEO Eugenio Ynion Jr said that blockchain would disrupt the shipping and logistics industries to make the sector more efficient. Shiptek has launched XLOG, the first fully-integrated blockchain-based end-to-end shipping and logistics platform in the world.

Ynion said during the official launch of XLOG:

"I have been in the shipping business for more than 24 years, and I've noticed that the industry has not changed significantly and we have been doing the same thing over and over. While some brokerage or some companies involved in this industry might have digitized some of their operations, as a whole, it’s all the same as it was decades ago. So I thought, ‘Why don’t I disrupt my own business by creating a one-stop shop marketplace?’” 

Nico Gonzales, marketing and sales director of XLOG, told Cryptovest:

“Integrating blockchain in the logistics space will eliminate shady deals and provide peace of mind to importers. XLOG allows importers to track their shipments real time,” Gonzales said.