Since tech companies realized the potential of blockchain technologies they have been working around the clock to develop trustworthy and efficient products for the businesses.
Since tech companies realized the potential of blockchain technologies they have been working around the clock to develop trustworthy and efficient products for the businesses. The most recent partnership between a tech firm and another company was the joint venture between IBM and AP Moller-Maersk.
AP Moller-Maersk is a logistics firm, which is ready to reap the benefits distributed ledgers can deliver. The partnership between the two companies was set to change the way the logistics work. A global blockchain-based supply network is going to track the paperwork of thousands of shipping containers, traveling around the world.
The new platform is built on the IBM’s hyperledger technology and will provide digitization for the millions of documents that inevitably come with shipping. Both companies hope to lure as many shippers, freight forwarders, ocean carriers, posts and customs authorities as possible. Hopefully, they can manage to build a brand new global logistics system which will save money and time. Nowadays the shipping industry spends enormous amounts of money on paperwork documentation but this is due to change if everyone embraces the advantages of distributed ledgers.
Furthermore, the partners claim the platform will significantly reduce fraud and error rates as well as shipping time. On the top of that billions of tons of paperwork will be saved, thus making the industry more environmentally friendly. Back in 2014, Maersk carried a survey, which revealed how sophisticated the shipping process can be. A shipment from East Africa to Europe may be processed by 30 people and institutions that may include more than 200 interactions, regarding the goods.
How much does it cost the whole process you might ask? Well, a lot. It is estimated that nearly 20% of the total shipping cost is used to cover paperwork expenses. Paperwork is expensive, can be lost, misplaced and anything in between. It is just a pain to follow the whole process strictly. However, IBM and Maersk are not falling for it and they are ready to be on the forefront of change.
Both companies have already piloted the hyperledger technology with organizations like DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, US Customs and Border Protection, and the Customs Administration of the Netherlands.
Now it’s up to IBM and AP Moller-Maersk to go mainstream. First of all, they will start off with shipping information pipeline and paperless trade. Already some well-renowned companies have expressed their interest to join the party – General Motors and Procter and Gamble.
In IBM are extremely excited with the joint venture because it can potentially transform the complex nature of the global supply chain. Moreover, it can raise interest from other companies that are still unsure about the benefits of blockchain technologies.