IBM and Maersk recently partnered up to work on a blockchain shipping solution that could change the way that the industry tracks shipments. Multiple entities around the world have been embarking on trials to see how the technology works within their own industry, and the Canadian Border Services Agency is the most recent one to be added to the list.
The shipping solution, which has been named TradeLens, is meant to minimize the amount of paperwork in the transportation of goods. IBM and Maersk held a pilot of the project last year, but the ability to trial TradeLens was only a recent development in August. Now, CBSA will integrate the trial into their own protocols to “determine what role the platform could play in its business processes.”
President John Ossowski of the CBSA said,
“TradeLens could create a singular, trusted digital supply chain for all shipments entering Canada. The TradeLens pilot gives us an opportunity to not only find process efficiencies and gain analytical insights, but improve data providence, accuracy and targeting capabilities. The end result may be a faster and more reliable national supply chain, which could positively impact Canada's economic output.”
Along with their embarkment on the TradeLens trial, the CBSA also has tied themselves in with the Montreal Port Authority, allowing them to also use the shipping solution.
Mike White, the leader of the TradeLens project with Maersk, added,
“We look forward to working with the CBSA to pilot how the quality and timeliness of data in TradeLens can act as a catalyst for significant productivity gains and optimized financial cycles. Our goal is to play a leading role with all members of the World Customs Organization to help them attain faster processing of global trade data into a more effective, simplified structure and process that addresses their current challenges and future needs to improve the customer experience.”
Making smart contracts into a common practice with the supply and shipping industries leave less room for error. There’s no need for middlemen, and costs are reduced, since the rate of errors are reduced as well. TradeLens creates a great opportunity for companies in this industry, with many of the current participants already praising them. For example, CEVA has said that it marks a “big step forward toward establishing a market standard for blockchain solutions.” Though the United States hasn’t quite gotten involved, it looks like they are planning to integrate the same trial as part of the 90 organizations that are currently involved.