Singapore’s Biggest Shipper Partners IBM in Developing Blockchain for Crucial Trade PaperworkTech giant IBM is partnering with one of Singapore’s biggest shipper, Pacific International Lines (PIL), in digitalizing one of the most important documents in shipping – Bill of Lading.
The two firms will collaborate in designing and creating an electronic Bill of Lading (e-BL) which will exist on a blockchain. In international trade, the Bill of Lading not only serves as evidence of ownership of goods, receipt of shipment and contract of carriage but is also relied upon by banks and other financial institutions in the provision of trade financing.
Blockchain to the Rescue
But because the Bill of Lading is handled by multiple parties, there is the risk of loss and fraud. Additionally, it has to be mailed to the various parties and this results in unnecessary costs being incurred. With the e-BL which will reside on blockchain ledger developed by IBM, it is hoped that fraud and unnecessary handling costs will be eliminated.
“Traditionally, information flow is predominantly handled via manual processes and the supply chain is slowed down when there are many points of communication within its framework,” PIL’s Executive Director, Lisa Teo, said in a statement. “The use of blockchain technology to allow for the direct exchange of documents and information via the decentralized network to boost transparency, eliminate disputes forgeries and unnecessary risks will be key for this industry to progress.”
The collaboration between IBM and PIL is backed by among others Singapore Customs, Singapore Shipping Association, Maritime and Port Authority of Singapore, Bank of China (Singapore) and Infocomm Media Development Authority.
https://www.ccn.com/singapores-biggest-shipper-partners-ibm-in-developing-blockchain-for-crucial-trade-paperwork/
