Blockchain can be defined as a system which records information in a way that makes it impossible to change based on its unique encrypting method where a unique code is assigned to each piece of data. The recording and distribution of digital information is the main goal of blockchain technology, but it builds in ways to avoid the editing of data in the future. Improvement of blockchain technology and its advantages already became part of our individual lives. Beside the impact on our lives, we are now able to see how different industries benefit from the latest and one of the most revolutionary technologies in history.
When Blockchain technology started to be considered the safest way to distribute data, companies and enterprises started to digitalize data by using blockchain technology to decrease paperwork.
For all types of cargo trading and transportation, paper documents are still being largely used for customs clearance and delivery of goods. Due to the increase of global logistics volume along with the international economic development and the bottlenecks of postal networks since the beginning of the COVID-19 pandemic, delays in custom clearance became a major issue and started to create bottlenecks in the logistics industry. Therefore, the need for digitization of documents is increasing and it is expected that customs clearance and delivery using electronic documents will be a major part of customs clearance for any type of cargo.
Now, shipping companies are coming together to digitize the industry further.
Ten companies including Cosco Shipping Energy Transportation, China Merchants Energy Shipping, Sinochem Energy, China National United Oil Corporation, Macquarie, Bank of China, China Construction Bank, Saudi Aramco Energy Ventures, Mitsui & Co, and Wanxiang Blockchain have signed an agreement to set up a joint venture called TradeGo. TradeGo will establish a digital international bulk cargo service platform based on blockchain technology.
TradeGo is a digital document platform which will be used first in China and will provide a digital documentation service for bulk cargo trading and promote efficiency improvement through the realization of quick custom clearance and delivery, utilizing blockchain technologies.
“The stakeholders of TradeGo are the leaders from energy, transportation, finance, metal and blockchain sectors, which will become the first batch of partners to develop the platform, and explore innovations for digital international trading of bulk cargos,” commented Cosco Shipping Energy Transportation regarding the agreement.