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Blockchain Technology & Its Advantages for the Shipping Industry
Blockchain Technology & Its Advantages for the Shipping Industry

It’s the era of the Industrial Revolution 4.0! Blockchain, the Internet of Things, Artificial Intelligence, Cloud, Automation and more such technologies are entering in different industries and changing the way they function. The advancement of technologies helps in optimising businesses’ productivity, reducing the operational cost and time involved. One such technology that can usher a new era of reforms in the shipping industry is the blockchain technology. 

Blockchain technology can revolutionise the maritime industry, which makes up for some 90% of the world trade and in monetary terms, experts estimate it to be over $10 trillion a year. Marine blockchain can transform the industry and bring benefits to exporters, importers, ship owners and even governments.

Blockchain Technology in Shipping Industry
Before we explain the use of blockchain technology in maritime industry and its advantages, let us know what is blockchain technology. It was initially enabled for financial transactions in a trusted manner between the parties without the need of an intermediary like the bank. Over time, its use as a decentralised, secured and encrypted public ledger started taking place in various industries, including shipping changing the very manner in which the trade was getting carried out.

Blockchain can change the whole shipping operations into a paperless one, eliminating the scope of bureaucratic processes, making cargo checks faster, facilitating predictive analytics, and ensuring trade more safely and transparently. It can lead to an era of digital ledgers and smart contracts. These contracts will come in the form of a computer program that will run, self-execute, and automatically update the terms and conditions of any agreement between the parties.   

The Advantages
Adapting the blockchain technology in shipping operations can benefit the industry at the macro level and streamline processes in many ways. Some of the prominent advantages include

  • The Paperless Era: Conventionally, a copy of the ladle’s bills had to be sent to multiple parties like the ship commander and the party receiving the shipment. This was an expensive and time-consuming task. With blockchain, parties can create a digital ledger of the goods loaded on the ship, including the other relevant information. This digital ledger can get accessed by all the stakeholders, anytime and from every location.
  • Faster & Transparent Shipping: With no paperwork, blockchain can eliminate the delays and discrepancies in records. The data, once added on a blockchain as a record, cannot be replaced or deleted. As the whole process gets digital and encrypted, there are no chances of any unnecessary delays that will impact the flow of the shipment.
  • Real-Time Data Accessible: Blockchain enables users to maintain decentralised data, which is accessible to all. Updates in the ledger are possible about the real-time shipment location and expected time of arrival at the destination.
  • Cost Reduction: There is much expense involved in maintaining, updating, and storing of shipment records. However, as the whole process becomes digital, this entire cost incurred by shipping companies will reduce. It will also eliminate the company from the extra and unforeseen expenditure that they ended up incurring in the case of a misplaced document.
  • Greater Security & Accuracy: The digital ledgers eliminate the scope of manual errors and as all the information is encrypted, there is less scope of any fraudulent activities.

The global blockchain market is expected to be worth $23 billion by 2023. It will have exciting implications on the way products move around the globe. If adopted in the shipping space, goods can get shipped faster with improved and efficient data visibility and fewer ancillary transactions. However, it is essential that the blockchain makes inroads into the shipping ecosystem and the change can be a reality at the industry level. If shipping companies, regulatory authorities and governments work together to overcome the blockchain paradox, the industry can benefit from this technology.

Working towards such state-of-the-art technologies and innovations is Alphard Maritime. If you wish to ship your products worldwide with a maritime firm that offers the best of new-age technological solutions and follows industry best practices, trust Alphard Maritime. Our business line includes – marine transport & logistics, ship management/offshore fleet, dry cargo chartering, marine offshore construction, marine construction material supplier, dry docking, ship repairs and more. It is the years of experience and a team of some master mariners, engineers and naval architects who provide you with an unmatched experience and industry best service. For every Maritime service, rely on the experts and benefit with expertise and cost-effective solutions.