The global shipping giant Maerskhas recently teamed up with IBM to develop a blockchain-based platform to deal with issues in the global supply chain. The partnership between the two companies was officially revealed last year. However, they have been working together collaboratively since June 2016. Their aim is to develop a platform powered by blockchain, which will enable the digitization of the global supply chain.
The Endgame Is a Joint Platform
According to both companies, the goal of this collaboration is the creation of a new company, which will offer a blockchain-based platform for the digitization of the supply chain. The blockchain is based on the distributed ledger, which ensures that there is a record of transactions at all times within the network.
This initiative comes hot on the heels of the peak of the cryptocoin hype. For these two companies, they see the joint venture as a way to make the global shipping industry more efficient. For this partnership, they will rely on AI, cloud, analytics, and the Internet of things from IBM. Maersk will bring in its expertise in the global shipping industry.
The Chief Commercial Officer at Maersk and chair of the joint venture, Vincent Clerc, said that the new company is a milestone in the effort to digitize global trade. Via this joint venture, the two companies hope to commercialize their blockchain-based platform. Some of those taking part in the pilot program include the US Customs and Border Protection, DuPont, and Dowm Chemical. Others that have shown an interest in the platform are Procter and Gamble, and General Motors.
Details of the Joint Venture
The CEO of this new company will be Michael J. White, who previously served as the president of Maersk Line, North America. According to information released, the company’s focus will be on the commercialization of shipping data to provide real-time visibility of the supply chain.
Besides the blockchain platform, the joint venture will also focus on paperless trade. This product’s aim will be the automation of paperwork across different companies. It will also be seeking to get past organizational boundaries. They will also utilize the blockchain’s smart contract capabilities. This new company will have its headquarters in New York. After it is launched, products from the joint venture are expected to hit the market within just six months.
Why This Is Important
The world’s trading ecosystem has been rapidly expanding in size and complexity. Today, it is estimated to be worth over $4 trillion annually. It is also worth noting that over 80% of all goods used by consumers globally are shipped across the oceans.
The World Economic Forum estimates that if barriers to trade were reduced within the global supply chain, the global trade could grow by about 15%. This would boost economies and create numerous jobs.
What do you think about this joint venture between Big Blue and Maersk? Leave us your thoughts in the comments section below.