COPENHAGEN, DENMARK and ARMONK, NY - 16 Jan 2018

A.P. Moller – Maersk and IBM today announced their intent to establish a joint venture to provide more efficient and secure methods for conducting global trade using blockchain technology.

The aim of the new company will be to offer a jointly developed global trade digitization platform built on open standards and designed for use by the entire global shipping ecosystem. It will address the need to provide more transparency and simplicity in the movement of goods across borders and trading zones.

The cost and size of the world’s trading ecosystems continues to grow in complexity. More than $4 trillion in goods are shipped each year, and more than 80 percent of the goods consumers use daily are carried by the ocean shipping industry. The maximum cost of the required trade documentation to process and administer many of these goods is estimated to reach one-fifth of the actual physical transportation costs. According to The World Economic Forum, by reducing barriers within the international supply chain, global trade could increase by nearly 15 percent, boosting economies and creating jobs.

The attributes of blockchain technology are ideally suited to large networks of disparate partners. A distributed ledger technology, blockchain establishes a shared, immutable record of all the transactions that take place within a network and then enables permissioned parties access to trusted data in real time. By applying the technology to digitize global trade processes, a new form of command and consent can be introduced into the flow of information, empowering multiple trading partners to collaborate and establishing a single shared view of a transaction without compromising details, privacy or confidentiality.

Maersk, a global leader in container logistics, and IBM, a leading provider of blockchain, supply chain visibility and interoperability solutions for the enterprise, will use blockchain technology to power the new platform, as well as employ other cloud-based open source technologies including artificial intelligence (AI), IoT and analytics, delivered via IBM Services, in order to help companies move and track goods digitally across international borders. Manufacturers, shipping lines, freight forwarders, port and terminal operators and customs authorities can all benefit from these new technologies, and ultimately consumers.

“This new company marks a milestone in our strategic efforts to drive the digitization of global trade. The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit,” said Vincent Clerc, chief commercial officer at Maersk and future chairman of the board of the new joint venture. “By joining our knowledge of trade with IBM’s capabilities in blockchain and enterprise technology, we are confident this new company can make a real difference in shaping the future of global trade.”

IBM's blockchain platform is enabling hundreds of clients and thousands of developers to build and scale active networks across complex use cases, including cross border payments, supply chains, and digital identification.

"The major advances IBM has made in blockchain have shown that the technology can foster new business models and play an important role in how the world works by building smarter businesses," said Bridget van Kralingen, senior vice president, IBM Global Industries, Solutions and Blockchain. "Our joint venture with Maersk means we can now speed adoption of this exciting technology with the millions of organizations who play vital roles in one of the most complex and important networks in the world, the global supply chain. We believe blockchain will now emerge in this market as the leading way companies seize new untapped economic opportunities.”

IBM and Maersk began a collaboration in June 2016 to build new blockchain- and cloud-based technologies. Since then, 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.

The joint venture will now enable IBM and Maersk to commercialize and scale their solutions to a broader group of global corporations, many of whom 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 freight forwarder and logistic company, 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.

To address the specific needs of the industry, Maersk and IBM are establishing an advisory board of industry experts to help further shape the platform and services, provide guidance and feedback on important industry factors, and drive open standards.

Maersk and IBM have named Michael J. White, former president of Maersk Line in North America, as CEO of the new company. He commented, “Today, a vast amount of resources are wasted due to inefficient and error-prone manual processes. The pilots confirmed our expectations that, across the industry, there is considerable demand for efficiency gains and opportunities coming from streamlining and standardizing information flows using digital solutions. Our ambition is to apply these learnings to establish a fully open platform whereby all players in the global supply chain can participate and extract significant value. We look forward to further expanding our ecosystem of partners as we progress toward a global solution.”

The new company initially plans to commercialize two core capabilities aimed at digitizing the global supply chain from end-to-end:

- A shipping information pipeline will provide end-to-end supply chain visibility to enable all actors involved in managing a supply chain to securely and seamlessly exchange information about shipment events in real time.

- Paperless Trade will digitize and automate paperwork filings by enabling end-users to securely submit, validate and approve documents across organizational boundaries, ultimately helping to reduce the time and cost for clearance and cargo movement. Blockchain-based smart contracts ensure all required approvals are in place, helping speed up approvals and reducing mistakes.

Upon regulatory clearance, solutions from the joint venture are expected to become available within six months.

Source: IBM

Illustration Photo: Container ship (CC0 Creative Commons from Pixabay.com)

Comments

No comments to display.

Related posts

EU's Call for Proposals: Alternatives to anti-microbials in farmed animal production

Activities shall focus on developing and testing new, efficient and targeted alternatives to anti-microbials in farmed animal production.
Application Deadline in 3 months
11 minutes ago

Aerial Mapping of Forests Affected by Pathogens Using UAVs, Hyperspectral Sensors, and Artificial Intelligence

The method integrates unmanned aerial vehicles (UAVs), hyperspectral image sensors, and data processing algorithms using machine learning.
28 minutes ago

EU's Call for Proposals: Blue economy

This topic aims to support demonstration projects based on innovative technologies testing/deploying/scaling-up of new industrial or service applications and solutions for the blue economy.
Application Deadline in 3 months
40 minutes ago

Exciting Possibilities in the Visible Light Communications Market & Their Potential

The Global Visible Light Communication market is valued of $ 6.9mn during the forecast period 2017 -2023. As the developments pertaining to VLC are being executed incessantly complimented by the exponential rise in the data transfer due to on-going IoT wave will boost the market. Europe remained a significant market for VLC developments in 2017. The access and station point’s shipments in this region totaled around 4.7 thousand units in 2017 and is forecast to advantage at a CAGR of 153.6% while Americas evaluated to witness the highest CAGR of nearly 178% in the forecast period.

EU's Call for Proposals: Blue Labs

The focus of this action is to support young scientists supported by experienced researchers, industry and local stakeholders, to team up and develop innovative technologies, products and services in support of a sustainable blue economy, preserving marine resources and ecosystems.
Application Deadline in 3 months

A Close Look At The Latest Research Trends Within The Uninterruptible Power Supply Market

The Global Uninterrupted power supply market has a market revenue of $10,369.8 million in 2017 and is estimated to grow at a CAGR of 3.6% during the forecast period 2018-2023. Growing demand for continuous power supply and protecting equipment from voltage fluctuations is driving the market.

Precision Agriculture Design Method Using a Distributed Computing Architecture on Internet of Things Context

The Internet of Things (IoT) has opened productive ways to cultivate soil with the use of low-cost hardware (sensors/actuators) and communication (Internet) technologies.

Call for Applications: 2019 GrowthAfrica Business Scaleup Accelerator in Kenya, Uganda, Ethiopia and Zambia

The GrowthAfrica Acceleration Programme is designed to help you scale your venture, make it investment ready and develop your entrepreneurial leadership with the aim of unlocking significant growth in your business.
Application Deadline in 2 months

Exciting Possibilities in the Disposable Gloves Market & Their Potential

Disposable glove market is valued 6639.5$ million in the year 2017 and is anticipated to grow at a CAGR of 6.4% from 2018-2023. Medical and Dental is having the highest market share of 71% and followed by industrial safety and chemical which is having 11% of market share.

A Quick Look At The Latest Happenings In The Dispensing systems Market

The global Dispensing System Market is estimated to surpass $8 billion by 2023 growing at an estimated CAGR of 4.8% during 2018 to 2023 majorly driven by automation and mass production in most of the industries. The usage of dispensing systems has been increased in the manufacturing sector and with the technological advancement they are even catering new end-users offering wide range of functionalities.