Two leading global shipping firms, Mediterranean Shipping Co (MSC) and CMA CGM, have joined blockchain shipping platform TradeLens, Reuters reports on May 28.
Switzerland-based MSC, the world's second-largest shipping company, and French CMA CGM, reportedly the fourth-largest container shipping firm, have joined the blockchain platform developed by the world’s largest logistics company Maersk and tech giant IBM.
As previously reported, blockchain-powered shipping solution TradeLens intends to reduce paperwork and associated costs and time in the logistics industry — which reportedly accounts for $4 trillion — with over 80% of the goods carried by the ocean shipping sector.
According to Reuters, by joining the platform, MSC and CMA CGM will have almost 50% of all cargo shipped by sea tracked using distributed ledger technology (DLT).
Vincent Clerc, Maersk executive vice president, considers the entrance of MSC and CMA CGM to the TradeLens platform a “game changer,” Reuters writes. Clerc noted that clients have to carry out a massive amount of paperwork without a transparent view of what is going on with their goods, with Reuters adding that paperwork amounts to almost 20% on average of the cost of shipping a container.
The TradeLens blockchain shipping solution was launched by Maersk and IBM in August 2018, with around 100 global organizations involved and 154 million shipping events captured at the time. Integrating Internet of Things and sensor data, the platform is capable of tracking containers, as well as a number of variables such as temperature control and container weight.
Recently, the World Economic Forum partnered with more than 100 global supply chain and logistics leaders to standardize blockchain apps in the industry. The project reportedly includes over 20 governments, as well as major shippers and supply chain suppliers including Maersk, Hitachi and Mercy Corps, among others.
Previously, Marseille Fos Port, the main French trade seaport, announced it will run a blockchain pilot for freight logistics in June 2019.