A collaboration including CargoSmart Limited, Cosco Shipping Lines (COSCO), Shanghai International Port Group (SIPG), and Tesla has tested a blockchain-based cargo release application. The app managed to significantly shorten the discharging time needed and made it easier for Tesla’s logistics teams to control the offloading process.
In a press release from earlier today, CargoSmart Limited announced the pilot project. It comes as a result of a partnership with COSCO, SIPG, and the popular American electric vehicle and clean energy company – Tesla.
The initial testing took place in December 2019. It was amongst the first projects with an ocean carrier conducting a real-time exchange of shipment data with a terminal operator through blockchain. It showcased the merits coming from transparent documentation and also the efficiency gains for industry participants.
Additionally, the pilot project minimizes consignee and shipment agent verification steps with their ocean carriers. Thus, it speeds up the release of sea waybills. Ultimately, this means that truckers can pick up the cargo at the corresponding terminal faster, which also expedites the deliveries.
During the pilot, Tesla noted seriously accelerated cargo pick up procedures.
SIPG Executive DGM of Operation and Business Department, Henry Huang, commented on the project:
“The pilot is a key component of our journey towards paperless, trusted, and seamless trade processes at the Port of Shanghai, and it demonstrates the benefits for supply chain stakeholders around the world. We look forward to extending the collaboration with more supply chain stakeholders to render extraordinary service to our community.”
Once the application is live, it will be developed for participants of the Global Shipping Business Network (GSBN) blockchain consortium.
According to Wu Yu, General Manager of Business Process and System Division of COSCO, the pilot satisfied all parties, and they can expect even further blockchain utilization:
“The pilot with SIPG and CargoSmart showcased significant efficiency gains not only in the cargo release process but also for downstream supply chain planning by presenting a single source of truth for documentation for all involved parties. We look forward to more blockchain-based applications that can create value for customers and the industry alike.”