Global Shipping Business Network (GSBN) has launched a new blockchain platform to track a third of shipments across the globe. The independent, not-for-profit, technology consortium is looking to redefine its operations by partnering with Oracle, AntChain, Microsoft and Alibaba Cloud in building the new blockchain tracking platform. This would see it accelerate transformation in the digital world.
The development is targeting the Asian countries where GSBN predominantly operates.
GSBN was founded in March 2021 by eight global maritime terminal operators and shipping lines which make up a third of all containers handled in the world. The blockchain was meant to digitise the various shipping processes such as logistics data, document issuance and clearance. Once the full operation is digitized, the information on the extent of the organization’s influence will become clearer.
For a strong, reliable and scalable platform, GSBN is partnering with the best of the technology companies in developing the blockchain platform. For example, it partnered with Oracle Cloud for the underlying blockchain network due to the proficiency of its distributed ledger platforms for building permissioned platforms.
GSBN is relying on Microsoft Azure for its scalability, functionality, security and availability. AntChain comes in for deployment in China. It comes with a blockchain network for the IoT and other innovative technologies for the market. Alibaba Cloud will also be crucial in the deployment of the platform in Asia due to its popularity in the region.
Given the open-source nature of blockchain technology, questions on security do arise. GSBN ensures information control by encrypting data before it’s sent to the blockchain platform. This makes it only accessible with authorisation. Blockchain technology will enhance collaboration with other competing market participants.
GSBN had earlier in the year appointed IQAX as the technological partner in developing and operating the blockchain platform. It then in July released the first blockchain platform Cargo Release meant for speeding up the shipment processing time.
Is blockchain the future of global shipments?
“Shipping is a slow and age-old industry still conducted in large part by phone and email,” says Daniel Wilson, the Director of Business Development at TradeLens. TradeLens is a blockchain-based supply chain platform launched by Maersk and IBM in 2018.
In an industry that has traditionally been slow to react to technology, blockchain is a huge step in innovation that promises massive improvements in efficiency. However, global shipping as a whole is a very complex one with a lot of moving parts.
Blockchain’s many advantages are especially suited to shipping. Information security guaranteed by immutability, semi-public chains giving access to global stakeholders, and smart contracts automating clearance and customs checks could result in vast time, labour and cost savings.
However, despite these strong advantages from a technical standpoint, blockchain still faces a lot of bureaucratic and even political challenges. Industry collaboration will have to step up to ensure uniform blockchain adoption at all levels, across the globe.
GSBN has started on the right foot by bringing together some of the biggest players in the global shipping market. Only time will tell whether the benefits will help the rest of the industry to lay down their differences and allow seamless information sharing and collaboration, all for the global good.
