Modern Terminals, a container terminal operator that is currently Hong Kong’s second largest, is the latest entrant into the TradeLens project. The TradeLens project is a technological solution that is supported by Blockchain and has been created by IBM and Maersk.
Modern Terminals Joins The TradeLens Project
Modern Terminals has stated through its press release that the TradeLens ecosystem is geared towards digitizing and streamlining the processes within the world’s supply chain. The press release also stated that this mission will promote the deliverance of higher efficiency at a lower cost.
The TradeLens project includes over twenty port operators and terminals from all across the globe. This includes two hundred and thirty-four dock found in five continents. These ports include the Patrick Terminals, Port of Valencia, Port Base, Port of Valencia, Port of Philadelphia, Port of Bilbao, Port of Halifax, PortConnect and PSA Singapore.
Liaison has stated that the inefficiencies experienced with the traditional supply chain have cost the industry billions of dollars within the last ten years.
Benefits Of Distributed Ledger To The Shipping Industry
Before the TradeLens project was launched, most of the ports that are now a part of the project were mainly conducting their processes through paper records. This traditional way of storing records is open to manipulation, is easily damaged and lost. With container ships still having to have the paper documentation with them to enable easy verification, they experience delays in the flow of the supply chain that lead to delays in the shipment and errors due to the manual filing.
Peter Levesque, who is the managing director of Modern Terminals has said that though the move to join the TradeLens project may not seem as much, it actually is. He added that without Blockchain those within the ship[ping industry had to rely on faith that what was contained in the documentation was actually what was in the containers.
The TradeLens project has stated that its trial run has been able to reduce the shipment time by forty percent and as a result of this, the supply chain participants have been able to enjoy an overall saving of costs. Through the use of the distributed ledger, he supply chain participants were able to track the status of a specific container within the supply chain and broadcast it in real time. This ensures that the records remain immutable and are available when required.
Network Members To Make Suggestions On Improvements To Be Made
Vincent Clerc, the chief commercial officer at Maersk had earlier on in the year stated that the potential that comes with providing a neutral and open digital platform is significant, giving participants within the supply chain an opportunity to benefit.
Modern Terminals comes in as Network Member within the TradeLens project, a position that allows it to evaluate the performance of the platform in real time. Depending on the outcome of the trial, each port will have the opportunity to make suggestions on whether the project could be improved further.