Multi-billion Dollar Container Shipping Industry About to Hit the Blockchain

Multi-billion Dollar Container Shipping Industry About to Hit the Blockchain

For all the promise of blockchain technology, much of what we’ve seen so far is potential or even simply conceptual, rather than physically real. One area in which tangible progress has actually been made, however, is logistics, and particularly shipping.

Commodities trader Louis Dreyfus recently completed the export of 60,000 tonnes of soybeans to China, with every stage of their journey tracked on the blockchain. Of the efficiency gains, Louis Dreyfus head of trade operations Robert Serpollet, said, “our expectations were high but the results were higher again.”

“Perfect Blockchain Fit”

Now Danish company Blockshipping plans to bring the benefits of the blockchain to the multi-billion dollar container-shipping industry. 60% of all sea-borne trade is conducted through the world’s 25 million shipping containers. However, the current system is full of inefficiencies, prone to manipulaton and ripe for improvement.

Blockshipping CEO Peter Ludvigsen explains that, “many millions of containers are constantly shifting location, incurring payments, and changing ownership.” As there is no central registry or real-time tracking, “a huge number of empty containers are being moved around unnecessarily,” leading to unnecessary costs and pollution.

The industry is also plagued by other issues including unnecessary capacity and the need to comply with more stringent environmental regulations.

There is, then, a need for transparency, efficiency and secure tracking – a perfect fit, it seems, for the blockchain. 

Founded by former executives of Maersk, the world’s biggest shipping container company, Blockshipping, hopes to solve the issues with its new Global Supply Chain Platform (GSCP) that is slated to provide a blockchain-based “global real-time container registry” as well as a “global trading platform for all kinds of services related to container handling.

According to Blockshipping, billions of dollars could be saved annually by more efficient allocation and use of existing container capacity. What’s more, if the platform is widely taken up, CO2 emissions could be reduced substantially.

The ICO has already attracted buy-in from both private investors and the Danish Maritime Fund. Two tokens are to be launched on the platform, the CPT and the CCC.

The internal Container Platform Token (CPT) is a utility token designed for use by the the industry itself for handling business transactions like fees. The Container Crypto Coin (CCC) is an external dividend token; 50,000,000 will be issued in the public sale in April.