Supply Chain

Digitizing Global Trade with Maersk and IBM

Share this post:

A global trade platform using blockchain technology aimed at improving the cost of transportation, lack of visibility and inefficiencies with paper-based processes

 

For more information

CONTACT US

 

A new joint venture

In January 2018, Maersk and IBM announced the intention to establish a joint venture to provide more efficient and secure methods for conducting global trade using blockchain technology. The new company aims at bringing the industry together on an open global trade digitization platform that offers a suite of digital products and integration services.

The platform is currently being tested by a number of selected partners who all have interest in developing smarter processes for trade. As we incorporate learnings and continue to expand the network, a fully open platform whereby all players in the global supply chain can participate and extract value is expected to become available.

You can also read the announcement by IBM and Maersk and the articles by Bridget van Kralingen and John Churchill to learn more about this joint venture.

The establishment of the joint venture remains subject to receipt of regulatory approvals. None of the information provided on this should be construed in any way as a commitment and this information is subject to change and represents goals and objectives only.

 

Industry challenges

The cost of global trade is estimated at $1.8 trillion annually1 with potential savings from more efficient process of ~10 percent. The cost and size of the world’s trading ecosystems continues to grow in complexity.

 

The case for a better way

 

About the platform

It is about reducing global trade barriers and increasing efficiency across international supply chains, and bringing to market a trade platform for containerized shipping — connecting the entire supply chain ecosystem.

The platform is being built on an open technology stack and is underpinned by blockchain technology. The two main capabilities at launch will address current visibility and documentation challenges.

A shipping information pipeline

Provide end-to-end supply chain visibility that enables all actors involved in a global shipping transaction to securely and seamlessly exchange shipment events in real time.

Paperless trade

Digitize and automate paperwork filings for the import and export of goods by enabling end users to securely submit, stamp and approve documents across national and organizational boundaries.

 

Potential benefits using the platform

The objective of the platform is to connect and provide benefits to the supply chain ecosystem. A global network of interconnected shipping corridors linking the ports and terminals, customs authorities, shipping lines, third-party logistics (3PLs), inland transportation, shippers and other actors, all together.

 

Organizations already participating

Since the collaboration started in June 2016, multiple parties have piloted the platform including DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, the Customs Administration of the Netherlands, U.S. Customs and Border Protection.

A broader group of global corporations have already expressed interest in the capabilities and are exploring ways to use the new platform, including General Motors and Procter and Gamble to streamline the complex supply chains they operate and Agility Logistics to provide improved customer services including customs clearance brokerage.

Additional customs and government authorities, including Singapore Customs and Peruvian Customs, will explore collaborating with the platform to facilitate trade flows and enhance supply chain security. The global terminal operators APM Terminals and PSA International will use the platform to enrich port collaboration and improve terminal planning. With support from Guangdong Inspection and Quarantine Bureau by connecting to its Global Quality Traceability System for import and export goods, the platform can also link users to important trade corridors in and out of China.

 

For more information

CONTACT US

CEO-designate, IBM-Maersk Joint Venture

More Supply Chain stories

Creating solutions for freight management with AI, IoT and blockchain

Logistics and transportation today is built upon a universe of antiquated supply chain assets, in which eye-watering sums of capital now find their home. The investment plans for these assets were approved long ago, in a world far different than that in which we currently live. This is still the case even with tech start-up […]

Continue reading

Transforming the manufacturing industry through built trust

Blockchain could be the next great disruption that manufacturers need to truly revolutionize their industry. With the potential to reduce cost by multiples, decrease lead time to focus on other core competencies and other great benefits, the application of blockchain will enable manufacturers to generate greater visibility within their manufacturing process and simplify otherwise mundane […]

Continue reading

Digital transformation: Next Gen procurement and supply chain

Procurement and supply chain are at the cusp of a disruption with AI, IoT and blockchain technology. A digital transformation is ensuing with the promise of greater efficiency in business processes, operations, transparency and security. Just look at some of the news trending in the tech world right now with Walmart using blockchain to trace […]

Continue reading