The new era of shipping blockchain technology has come.
【Published by Ship.sh】
The character of the waves is that it has been crushed by the rocks many times and pounced on the rocks all the times.
2018 is a booming year for blockchain. Except for the well-known bitcoin, most people still have a hard time distinguishing between the “token” community and the “chain” community. In contrast to the token community that is already on the verge of exploding, the blockchain technology represented by the “chain” community is being familiar, recognized and accepted.
The famous consulting firm — Oliver Wyman once release a report that predicted “using blockchain technology to reduce the settlement cycle, which can save 10 billion to 20 billion US dollars per year. This huge savings is precisely the market space related to the blockchain industry.”
As a shipping industry media, we believe that if blockchain technology can successfully applied to the shipping industry, it must be inseparable from the efforts of the port, the shipowners (carriers), and the industry players, leading companies such as Maersk, COSCO and Shanghai Port Group seem to have the innate advantage of integrating this resource at the starting line, but they may not have the advantage to reach the end.
More accurately, the blockchain model that shipowners + shippers + ports + logistics companies participate in, its value comes from the “goods” of logistics and distribution, can be shared in real time, easy to track, and data transparent, which will greatly Improve the efficiency of the physical business. Secondly, blockchain information has the definitions of real, effective, non-tamperable, precise traceability and responsibility. In practice, it can prevent the innocent loss of goods, and easy for the supervision department to analyze and investigate. In the process of real visual display logistics, achieve comprehensive electronic management.
It is in this opportunity, ship.sh and Mr. Yan Jun, President of Shanghai International Port (Group) conducted a special interview.
Q: How would you define the relationship with COSCO (Hong Kong)?
Yan Jun: “I believe that Shanghai International Port and COSCO Shipping Group are now in a “complete strategic cooperation” relationship, which is not only an alliance of the port and shipping industry. It also reflects the institutional advantages, and the relationship of this strategic cooperation will develop in a better direction.”
Ship.sh believes that the past two years are close ties between these two groups, and the sub-forum in the first China Import Expo, which was closed in November 2018, is the 2018 International Shipping (China) Annual Meeting hosted by COSCO Shipping Group. The Shanghai Port Group is also participating as always.
About GSBN (Global Shipping Business Network) Blockchain Alliance
On November 6, 2018, Dubai World Port Group, Hutchison Port Group, PSA International Port Group, Shanghai Port Group, CMA CGM, COSCO Shipping, Evergreen Shipping, OOCL, Yangming Shipping and other 9 well-known ports Airline companies and software solutions provider CargoSmart signed a letter of intent to create a partnership with the Global Shipping Business Network (GSBN).
As the signatory at the time, Yan Jun told the ship.sh that the GSBN Alliance will definitely take the path to a win-win direction.
At that time, we (Ship.sh) once commented that this is an alliance beyond any kinds of cooperation. Under blockchain technology, they has taken a solid first step in jointly building blockchain into the shipping industry. Perhaps in the short term, we still don’t know how these giants will lead the industry, but it is conceivable that is undoubted that it will change the influence of the industry’s business environment.
Yan Jun believes that all stakeholders in blockchain will receive corresponding returns based on their contributions. However, those mentioned related parties must have the following consensus: 1) recognize the industry standards; 2) identify the chain of technology can be applied; 3) recognize the value of the “shipping chain” structure; 4) joint participation, all members must follow the architectural design of the distribution of interests.
There are 206 countries and regions and more than 600 ports around the world. Many opportunities are waiting to be “chained together”. According to local laws and regulations, data interconnection and data exchange with global networks are realized under the same data standard.
Yan Jun said that the ideal of global blockchain alliance structure should be “regional chain”, “industry chain” and “international alliance chain”, and the three of them are mutually integrated.
In the understanding of Ship.sh, shipping, logistics, and ports are all in the shipping industry. Logistics data information can be run and exchanged in our shipping industry chain. With the movement of “goods”, such as “goods” across regions. Transportation is the big data behind of all kinds of “goods” will be exchanged in the regional chain. Between regions and regions, the international alliance chain formed is based on the regional chain of each region: all the goods and products in the world. It can mark with the corresponding coordinates, product attributes and other related data. Among the chain platforms of the same big data, any products that have been marked can be traced accurately under the supervision of the “international alliance chain”.
For example, a container from Kunshan need to ship to Germany through Shanghai to Hamburg, Germany, the entire process of this logistics will be marked by the blockchain in the various levels of the “international alliance chain”. In the past, the cargo side only knew that its cargo was loaded with boxes and boarded the ship. However, the specific ship to where it was, whether it was in Hong Kong or not. Trucking information could not be accurately grasped in the first time. In short, the logistics information was “unbalance”.
If chain-chain technology is used, all parties involved in the process of logistics and distribution will know the true state of a certain cargo in a clear and timely manner, and completely complete data. This kind of technology can make the whole industry opaque from the present, and the fragmented island transportation has been completely changed.
Yan Jun added: “The application of the shipping blockchain has faint in this technology. In the next 2–3 years, whoever can breakthroughs the barrier(problem) we are facing will become very important role in this industry in the future. One more thing, we, Shanghai Port Group (SIPG) has its own way to go.”
In this regard, we(ship.sh) asked Yan Jun a series of questions like: Why change? Without the blockchain technology, can the shipping industry improve? If there must be a company that wants to lead up and solve this problem, must it be a shipowner or a port company? Will it be possible that IT internet company can be the one? Is it possible to be a big cargo owner? Yan Jun’s clearly answer out questions said that blockchain technology belongs to the future which the chain technology is safe. At the same time, the concept of blockchain technology must be “open”. Of cause, any company has the opportunity to step in, but these company that wants to become the giant in the shipping blockchain industry must have great courage and an amazing effort.
There are no boss of shipping and port, only The Boss
In Yan Jun’s view, there is no boss of shipping, no boss of port, but only The Boss. As far as the current market conditions are concerned, the composition of shippers, freight forwarders, shipping companies and port companies are actually a community of interests. Their platform can last for a long time if only for the purpose of service. Frankly speaking, we met many shippers with the characteristic of ideas and capabilities, but this is the few times we met such a powerful, far-sighted and well-structured port company which is rare.
Identity is not the point in our industry. What’s important is that the industry is getting better through blockchain technology and adapting to the times. Under the “international alliance chain”, all parties will integrate the most advantageous parts together, and artificial intelligence, the Internet of Things, etc. will form an ecological circle. At that time, new breakthroughs, new formats or new business models will emerge.
Blockchain redefines NB?
In 2017, Yan Jun publicly stated that the port industry’s big data are from integration to cross-border, of cause let us not forget the magnitude of the data from the past “KB” to the current “GB”. In the future may become “NB” (order of magnitude). He said that “data” is very important for an industry. By analyzing the data, company can understands customer’s shipping habits, periodic changes. So that it has predictive configuration resources and more rational use of resources for scheduling. Whether the Internet or the blockchain is just in a technical stage for now, the goal is to make industry provide better services, which is inseparable from the support of big data.
The ship.sh commented that according to the current pace of blockchain technology, the arrival of “international alliance chain” may be a matter of the near future. If the “international alliance chain” is getting better and better, then the container industry is bound to face a new reshuffle. The status of port terminals, cargo owners and freight forwarders will also change. The experience of the Shanghai International Port tells us that good decision makers will promote continuous improvement for the industry.
A postscript:
This is our second in-depth interview with President Yan Jun. Unlike two years ago, this time we did not mention football. Compared with two years ago, this conversation is more biased towards technology. From the macroscopic dimension of the industry, Yan Jun has a thorough and long-term understanding of the combination of chain technology and port shipping industry. This is a rare pattern among the interviewees we have contacted in the past, including the senior technicians in the chain world. The world of blockchains he understands is more realistic, easier to reach, and more inspiring.
From the point of view of Yan Jun, we can also see that Shanghai International Port is committed to becoming the leader of the global digital port industry in this new era. They are actively grasping the development of the open world economy and are actively participating in the development of international rules. Only by transforming and enhancing the adaptability of technology, Shanghai International Port can be expected in the shipping industry and always stay ahead to lead the entire industry.
Perhaps the specific scene of the “shipping + blockchain” will take some time to land. But we have a reason to believe that the world will eventually be in the hands of those who can withstand ridicule and criticism and continue to move forward.
■ Source: Ship.sh
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