- DP World, a large UAE-based global port operator, joins a consortium with eight other companies developing Global Shipping Business Network (GSBN)
- GSBN will significantly streamline the processes in the shipping chain, solving existing problems
- It will be first used for managing shippers’ dangerous goods documents later this month
DP World, a UAE-based global port operator, has joined forces with eight biggest ocean carriers and terminal operators to create an open digital platform utilizing blockchain technology called Global Shipping Business Network (GSBN).
The companies DP World signed the Memorandum of Understanding (MOU) with are container shipping firms CMA CGM, Cosco Shipping Lines, Evergreen Marine, OOCL, Yang Ming, Hutchison Ports, PSA International and Shanghai International Port as well as CargoSmart, which provides software solutions.
The new platform will enable cooperative innovation and make more parts of the supply chain digital by connecting numerous stakeholders, including carriers, terminal operators, customs agencies, shippers as well as logistics service providers, according to a joint statement.
In search of a solution
It was said in the statement that the shipping companies have to deal with several completely different kinds of processes that take place both across physical and digital domains. This motivates the companies to adopt the digital technologies in order to solve problems related with shipment management procedures and information gaps, vastly improving their efficiency. According to the statement, these problems will be addressed by the consortium; what’s more, the consortium will explore cross-industry opportunities, advancing future innovation and insights.
The members of the consortium are planning to work collaboratively to create the platform and establish standards to speed up the introduction of the seamless sharing of documents and data across all shipping process stages.
Real-world benefits
The total value of trade between UAE and China equalled to about $53 billion in 2017, according to WAM’s statistics. Because a significant part of it is transiting through DP World’s Jebel Ali Port, the consortium believes the GSBN will bring significant benefits to shippers.
The potential benefits mentioned by GSBN blockchain consortium are faster, more precise processing of cargo information and increased transparency of terminal operations to cargo owners.
The consortium expects GSBN to provide the foundation for various new applications. The platform has the potential to transform documentation flow for shipment management such as documents related to dangerous goods, invoices, and cargo release.
The first planned application is set to digitise and organise shippers’ dangerous goods documents, automatically connecting with relevant parties in order to streamline the approval process. It will be available later this month.