China Shipbuilding Industry Company Limited (CSICL) to Trial Blockchain for Supply Chain Finances
A recent report from Chinese media outlet People’s Daily has confirmed that China Shipbuilding Industry Company Limited (CSICL) is going to experiment with blockchain technology to see if it can be used to finance their upstream suppliers.
CSICL is a subsidiary of China Shipbuilding Industry Corporation (CSIC) which is one of the two biggest shipping conglomerates from China. CSICL is as largest ship equipment enterprises as it is listed flagship. Occupying market-leading position in the field of marine power and components, marine auxiliary and other traditional ship equipment business.
Hu Youlian, President of Bank of Shanghai, Sun Wei, Deputy General Manager of China National Shipbuilding Industry Corporation, Yu Baoshan, Deputy Chief Engineer, and Li Junfeng, Chairman of CSSC Logistics, Hu Debin, deputy governor of Bank of Shanghai, and Xia Suijia, general manager of CSSC, signed a strategic cooperation agreement on supply chain services on behalf of both parties.
Notably, recently only provided credit service for CSIC Logistics, but also provided “1+N” supply chain financing solutions for its upstream suppliers. The two sides have carried out beneficial cooperation exploration in the field of supply chain financial services. The signing of this agreement has further expanded the scope of cooperation between the two sides and deepened the content of cooperation.
Eventually, Shanghai Bank and China Shipbuilding aim to breakthrough traditional credit business and jointly set up a joint venture to build a China Ship-Shangyin online supply chain financial platform, which will provide blockchain technology for upstream suppliers of CSIC. , multi-level circulation, detachable supply chain financing services.
Blockchain has been finding increasing use in logistics and supply chain solution. The shipping industry has been leading the way. There are numerous issues that need to be considered and polished, and IBM has recognized them in their recent blockchain study. It concludes that blockchain increases trust between parties and customers. A number of companies already recognized this and such effects can be seen in the TradeLens blockchain-based shipping network. TradeLens' network saw a massive growth since it was established, currently has over 100 partners. Up to 40 of them are shippers, and nearly 50 represent ports and terminals. In addition, there are eight government authorities.