CargoX, GSBN, IBM and Maersk have advanced their services related to Blockchain technology, highlighted a UNCTAD report.
In general, Blockchain technology could improve almost every aspect of international trade.
For example, smart contracts allow the automatic, fast and timely issuance of invoices, permits, licenses and customs certificates that are activated after the payment of fees and duties.
According to UNCTAD, this could reduce the administrative tasks required to ensure reconciliation of duty payments by traders, reduce shipment clearance time and improve government revenue by reducing the potential for corruption.
There are fewer blockchain applications in this area compared to online payments and decentralized finance, and many are in the proof-of-concept stage.
They involve complex procedures such as customs clearance, as well as various operations, document types, and many stakeholders such as customs, partner government agencies, customs brokers, carriers, banks, and insurance companies.
The INX company notes that Blockchain is an emerging technology that offers new capabilities whose use is not fully proven. There are limited examples of the application of distributed ledger technology.
In most cases, the software used by blockchain asset issuers will be in an early stage of development and has yet to be tested.
Already, numerous companies and governments are forming consortia and alliances to implement blockchain technology in various areas of international trade, says UNCTAD.
Also several companies are experimenting with the technology with their internal technical teams.
In 2018, CargoX issued the first blockchain-based smart bill of lading for goods leaving Shanghai for the port of Koper, Slovenia, at a small fraction of the usual cost of sending paper documents via courier services in the world.
CargoX is a global company specialized in document transfer solutions, based on blockchain transactions and a property validation platform.
Meanwhile, Global Shipping Business Network (GSBN) has already started testing DLT to accelerate efficiency in its work.
Furthermore, Tradelens, the IBM and Maersk-led consortium of leading firms in the shipping and shipping industry, already leverages technology in some areas of its ecosystem and has successfully tested an electronic bill of lading on the platform (and -BL).
For UNCTAD, these efforts are increasing rapidly with more leaders in the shipping and shipping industry taking the lead in bringing competitors together to collaborate to increase efficiency.