COPENHAGEN, Denmark, and ARMONK, N.Y., Jan. 16, 2018 – Two industry giants, A.P. Moller – Maersk and IBM, have unveiled their intentions to establish a joint venture aimed at streamlining and securing global trade processes through the use of blockchain technology.
The primary objective of this venture is to develop a global trade digitization platform based on open standards, designed for widespread adoption within the global shipping community. The platform seeks to enhance transparency and simplify the cross-border movement of goods.
In today’s increasingly complex global trading ecosystems, with over $4 trillion worth of goods shipped annually, there’s a growing demand for more efficient trade documentation processes. It is estimated that the administrative cost of processing these goods can account for up to one-fifth of their actual transportation expenses. The World Economic Forum suggests that by reducing barriers in international supply chains, global trade could experience a nearly 15% boost, leading to economic growth and job creation.
Blockchain technology, with its attributes well-suited for large partner networks, offers a shared and immutable ledger of all transactions. It enables authorized parties to access trusted real-time data without compromising details, privacy, or confidentiality.
Maersk, a leader in container logistics, and IBM, a provider of blockchain, supply chain visibility, and interoperability solutions, will leverage blockchain and other cloud-based open-source technologies, including artificial intelligence (AI), the Internet of Things (IoT), and analytics, to facilitate the digital movement and tracking of goods across borders. These advancements will benefit manufacturers, shipping companies, freight forwarders, port operators, customs authorities, and, ultimately, consumers.
Vincent Clerc, Chief Commercial Officer at Maersk and future Chairman of the joint venture, stated, “This new company represents a significant step in our efforts to digitize global trade. The potential of offering a neutral, open digital platform for secure information exchange is vast, with benefits extending to all supply chain stakeholders.”
IBM’s blockchain platform has already been instrumental in building and scaling active networks across various use cases, including cross-border payments, supply chains, and digital identification.
Bridget van Kralingen, Senior Vice President of IBM Global Industries, Solutions, and Blockchain, emphasized, “Our joint venture with Maersk will accelerate the adoption of this exciting technology by organizations that play essential roles in the global supply chain, potentially unlocking new economic opportunities.”
IBM and Maersk initiated their collaboration in 2016 to develop blockchain and cloud-based technologies, with several parties piloting the platform, including DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, and customs authorities in the Netherlands and the United States.
The joint venture will enable IBM and Maersk to extend their solutions to a broader group of global corporations, including General Motors and Procter and Gamble, who are keen on streamlining their complex supply chains. Agility Logistics, a freight forwarder and logistics company, is also looking to enhance customer services with customs clearance brokerage.
Singapore Customs, Peruvian Customs, APM Terminals, PSA International, and Guangdong Inspection and Quarantine Bureau are among the additional customs and government authorities exploring collaboration to facilitate trade flows and bolster supply chain security.
To address industry-specific needs, Maersk and IBM are forming an advisory board of industry experts to shape the platform, provide industry-specific guidance, and drive the development of open standards.
Michael J. White, former President of Maersk Line in North America and the CEO of the new company, highlighted the potential for efficiency gains and cost reductions in the supply chain through digital solutions.
The new company’s initial focus will be on two core capabilities:
- A shipping information pipeline, providing end-to-end supply chain visibility to enable secure real-time information exchange about shipment events.
- Paperless Trade, which will digitize and automate paperwork filings to reduce time and costs for clearance and cargo movement using blockchain-based smart contracts.
Upon receiving regulatory clearance, the solutions from the joint venture are expected to become available within six months.
The new company’s headquarters will be located in the New York metropolitan area.
The platform leverages IBM Blockchain technology provided through the IBM Cloud and is powered by Hyperledger Fabric 1.0, a blockchain framework hosted by the Linux Foundation.
The establishment of the joint venture is subject to regulatory approvals, and the information provided is subject to change and represents goals and objectives only.
About IBM Blockchain: IBM is a recognized leader in enterprise blockchain solutions. Its experts have made significant strides in transaction processing speeds, cryptography for securing transactions, and contributing to open-source code for blockchain applications in various industries. IBM’s cloud-based Blockchain Platform offers comprehensive capabilities for the development, operation, governance, and security of business networks.
About Maersk: A.P. Moller – Maersk is a global leader in container shipping and ports, with operations in 130 countries and a diverse workforce of around 88,000 employees. The company also includes a stand-alone Energy division.
Contact Information:
Hannah Slocum
IBM Communications
hslocum@us.ibm.com
+1 212-671-9974
Mikkel Elbek Linnet, Senior Press Officer – A.P. Moller-Maersk / Mikkel.Elbek.Linnet@maersk.com / +45 33638515
Katherine Mosquera, Regional Communications Manager North America – A.P. Moller – Maersk / Katherine.mosquera@maersk.com / +1 (973) 514-5160
SOURCE IBM
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