Singapore Shipping Association has teamed up with International Chamber of Commerce (ICC) as well as a Singapore-based tech company Perlin to create an International E-Registry of Ships (IERS) system, Cointelegraph reports.
The new system is expected to drastically enhance the laborious ship registration and renewal process. It is also expected to reduce costs and incidences of error as well as fraud during the ship-registration process.
Business Times reports that the new initiative is also being supported by both the Maritime and Port Authority of Singapore and, at the moment the system is being piloted by the bodies. If the new system becomes successful in Singapore, it is reported that the ICC will push for its global adoption to be the industry’s standard.
In the recent past, blockchain-powered solutions have gained traction in the maritime industry. In August this year, the Thai customs department stated that it would start using IBM’s Tradelens blockchain platform. As per the department, the system will help in streamlining operations through management of shipment tracking as well as sharing of information in Thai ports.
Maritime shipping companies Ocean Network Express as well as Hapag-Lloyd also joined the Tradelens blockchain tracking platform back in July this year. The platform helps in the reduction of paperwork, reduction of costs as well as save time within the logistics industry which is estimated to be worth about $4 trillion where 80% of the total goods are transported through ocean shipping.
Although there have been increased interests in blockchain solutions in the shipping industry, not all initiatives have gone as per the plans or expectations. Blockchain startup 300 cubits announced the suspension of its booking platform and halted the circulation of its TEU token early this month. The company blamed low transaction volumes where only a handful of containers were using the system as the main reason behind the suspension.
Singapore is ranked fifth-biggest registry recording about 4500 ships per year and the choice to test the new platform in the country can help to know if it will be effective.