Associated British Ports (ABP), a privately operated UK port operator, has signed a MoU with freight forwarder Marine Transport International to delve into a Blockchain tech application targeted at enhancing connectivity at the 21 ports it operates.
The Memorandum of Understanding (MoU) will ensure ABP test a Blockchain solution created by MTI, aiding one of the largest headaches in the logistics sector which is the absence of system interoperability. The proper solution is highly hoped to improve efficiency as no second will be ravaged on re-entering data manually. At present, the port operator manages 1/4 of the seaborne trade in the U.K and this is almost 100 million tons of cargo yearly.
“The logistics industry is awash with proprietary technology that forces users to work in a certain way – with blockchain, we can connect all those systems to ensure data is accurately and quickly shared, helping speed-up and simplify the flow of trade in and out of the UK,” the founder and chief executive officer of MTI, Jody Cleworth, said in a statement.
This isn't MTI's first Blockchain technology trial. In 2017, the freight forwarder accomplished a pilot program targeted at effectively automating and digitizing the whole supply chain process from shipper to hauler, and in addition, from port operator to carrier, on Blockchain technology.
The result verification for the efficacious pilot was carried out by the University of Copenhagen's genius scientists together with BLOC technology leads. At the moment, Cleworth commented that the distributed ledger technology had the noumenon of radically changing the supply chain businesses by helping in the creation of cost savings of up to 90%.
Other than Associated British Ports, other giant port operators around the world that have tried the same Blockchain technology efforts in the recent past include Abu Dhabi Ports, which almost 90 days ago started a Blockchain tech solution that improves efficiency by initiating real-time tracking of cargo and abrogating paperwork. In September 2017, the Netherlands' Port of Rotterdam Authority also uncovered a plan aimed at delving into Blockchain tech focusing on improving efficiency also.
Inefficiencies in world trade processes are blamed for delaying the expansion of trade volumes as a fresh World Economic Forum report issued early September 2018 indicated while advocating for efficient Blockchain tech:
“Paper-based, manual processes, some created centuries ago, lead to complexity and delays, introduce errors and risks, and stand in the way of reliable, real-time information gathering and tracking required for credible financing decisions.”