TradeLens announced that CMA CGM and MSC are joining the blockchain project. This addition boosts the already extensive and diverse ecosystem of supply chain partners that are part of TradeLens. The companies will promote TradeLens and create complementary services on top of the platform for their clients.
TradeLens ecosystem includes a variety of partners, from customs and other government authorities to ship owners and operators.
As Reuters reported, by taking part in the platform, MSC and CMA CGM will have nearly 50% of all cargo shipped by sea tracked using distributed ledger technology (DLT).
Rajesh Krishnamurthy, Executive Vice President, IT & Transformations, CMA CGM Group commented
Digitization is a cornerstone of the CMA CGM Group’s strategy to provide an end-to-end offer tailored to our customers’ needs.
Whereas, André Simha, Chief Digital & Information Officer, MSC, added
Digital collaboration is a key to the evolution of the container shipping industry. The TradeLens platform has enormous potential to spur the industry to digitize the supply chain and build collaboration around common standards.
TradeLens blockchain project provides many benefits to those participating;
For shippers, the solution can help reduce trade documentation and processing costs and help eliminate delays associated with errors in the physical movement of paperwork. It will also provide real time insight into cargo as it advances through the supply chain.
For customs authorities, the solution will give real time visibility, significantly improving the information available for risk analysis and targeting, which will lead to increased safety and security as well as greater efficiency in border inspection clearance procedures.
The participants don’t have the ability to modify, delete or append any record without consensus of the rest in the project; Therefore, the transparency level provides liability in reducing fraud and errors.
In the past, Maersk and IBM experienced problems concerning their blockchain project, TradeLens. Yet, both companies seem to have overcome their difficulties by having Modern Terminals joining and supporting the project and ports such as Port of Valencia, Port of Montreal, Saudi Arabia, Port Authority of Bay of Algeciras and ZIM.
