Israeli-based blockchain start-up ‘LogChain’ completed its first full cycle of an international blockchain-backed maritime shipment. The shipment consists of beverages from Belgium to Israel and was completed with the use of end-to-end digitized LogChain platform which handled all features of the supply chain, including electronic bill of lading and Letter of Credit.
Specifically, the blockchain reduces the shipment costs by approximately 7-9% and can also reduce two weeks of documentation time down to few minutes. Consequently, it generally removes the need for original documentation using carriers.
Although the features are provided by LogChain’s smart contracts and by the freight-forwarder, exporter and the importer involved, they are accessible and visible to all parties that are involved in the supply chain, until the shipment is released by the shipping company.
Yet, the shipment through a blockchain project is not the first to be conducted in the shipping industry. Specifically, Pacific International Lines Ltd (PIL) collaborated with IBM Singapore to a pilot program on e-bills of lading in a successful real-time pilot tracking shipment of mandarin oranges from China for the Lunar New Year celebrations.
In November 2018, nine ocean carriers and terminal operators signed an MoU to form a consortium to develop the Global Shipping Business Network (GSBN), an open digital platform based on blockchain technology.
The participants include ocean carriers CMA CGM, COSCO Shipping Lines, Evergreen Marine, OOCL, and Yang Ming; terminal operators DP World, Hutchison Ports, PSA International and Shanghai International Port; and software company CargoSmart.
Finally, the LogChain platform is running on Microsoft Azure cloud solution, using Ethereum. Founded in 2018, LogChain is a global supply chain and trade finance blockchain platform backed by technology and IT company Aman Group.