CargoSmart announced the successful completion of a proof-of-concept with eTradeConnect, of the new data exchange platform Global Shipping Business Network (GSBN). The engagement explored ways to enhance global trade through better collaboration among shippers, banks, terminal operators, and ocean carriers, with applications to be further developed once the GSBN is formed.
CargoSmart successfully completed the proof-of-concept facilitated by PwC, with banks and ocean carriers including Bank of China (Hong Kong) Limited, The Bank of East Asia Limited, HSBC, Standard Chartered Bank (Hong Kong) Limited, COSCO Shipping Lines, and OOCL respectively.
The proof-of-concept aimed to validate the hypothesis that linking supply chain data with trade finance transactions can provide enhanced transparency, traceability, and efficiency for member banks and their trade finance customers.
It specifically connects two blockchain networks to exchange information under a strong data governance model. With the consent of its customers, banks in the eTradeConnect network would be allowed to access relevant historical records provided by ocean carriers and terminals. Banks will also be able to shorten the customer validation process, with a better understanding of customers’ backgrounds and with real-time, credible shipment event data.
What is more, eTradeConnect member banks will be able to use trusted data to streamline their trade finance approval operations, enhance their risk management, and improve their abilities to extend credit to small and medium enterprises (SMEs).
Upon official formation, GSBN will operate a data exchange platform for supply chain participants around the world. The platform is expected to follow strong data governance while data contributors retain control of their data. The platform will also be transparent and aspires to encourage participation by all stakeholders.
Commenting on this development, Eric Ip, Group Managing Director, Hutchison Ports, stated that:
The successful completion of a proof-of-concept with eTradeConnect marks a positive beginning of a collaboration between carriers, terminals and banks to explore new products and value propositions for trade finance
Earlier this year, CargoSmart announced the execution of Global Shipping Business Network (GSBN) Services Agreements with maritime industry operators CMA CGM, Cosco Shipping Lines, Cosco Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group.
Under these agreements, each signatory pledges to provide resources to support preparatory work necessary to establish the GSBN, a not-for-profit joint venture to boost the digital transformation of the shipping industry.