In other news making headlines, Maersk, the world’s biggest shipping company, just completed their first live test on blockchain technology in their shipping activity aimed at simplifying ways in which they send trillions of dollars’ worth of goods across the globe. The blockchain technology came at a time when the company which accounts for more than 14% of the world’s shipping activities has recently experienced a sharp decline in profits. The executives hope the technology would help reduce the expenses and costs used in moving the expensive and time-consuming paperwork between different parties and replace it with a smart blockchain contract system.
The trial was successfully built in partnership with IBM which has recently been at the forefront in the campaign for adoption of blockchain technology. Using a hyper ledger, the goods moved through customs as required and other posts, however, unlike before, every party was given customized credentials that allowed them only to view the data required of them, and in the process saved on the time used to go through the unnecessary paperwork.
Speaking after the successful trial, the company executives are positive that blockchain is the game changer experts say it is. In their opinion, blockchain not only reduces paperwork, but it also poses the potential for fighting fraud and reducing costs incurred because of fraud brought about by the inability to correctly label products.
While analyzing the possible impacts blockchain might have in the future, Maersk is positive that future losses resulting from unnoticed empty containers will turn around with blockchain technology. The tech will allow shipping companies to personally and efficiently manage their supply chains. Hence make it easy to know which containers are empty, so they can put them to use, i.e., allow more parties access to the containers in nearby ships, and hence reduce the trade imbalance caused by empty containers placed in the wrong places.