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Globalisation has brought the most advanced trading networks the world has seen, with the biggest, fastest vessels, robot-operated ports and vast computer databases tracking cargoes. But it all still relies on millions and millions of paper documents.

That last throwback to 19th century trade is about to fall. AP Moeller-Maersk A/S and other container shipping lines have teamed up with technology companies to upgrade the world's most complex logistics network.

Should they succeed, documentation that takes days will eventually be done in minutes, much of it without the need for human input. The cost of moving goods across continents could drop dramatically, adding fresh impetus to relocate manufacturing or source materials and goods from overseas.

The key, as in so many other industries, from oil tankers to cryptocurrencies, is blockchain, the electronic ledger system that allows transactions to be verified autonomously. And the benefits wouldn't be confined to shipping. Improving communications and border administration using blockchain could generate an additional US$1 trillion in global trade, according to the World Economic Forum.

The shipping paper trail begins when a cargo owner books space on a ship to move goods. Documents need to be filled in and approved before cargo can enter or leave a port. A single shipment can require hundreds pages that need to be physically delivered to dozens of different agencies, banks, customs bureaus and other entities.

That plethora of paper processors has been one of the reasons shipping has lagged behind other industries in moving to electronic forms. The variety of different languages, laws and organisations involved in moving cargoes in the past made standardisation a slow process.

"Not all stakeholders are looking at deploying the same blockchain solution and platforms," APL said in response to questions. "This can pose as a challenge if stakeholders are expected to trade via a common platform or solution." 3 And the shipping lines will also need to persuade the ports and other organisations involved in cargo trading to adopt their systems. Maersk said Singapore-based port operator PSA International and APM Terminals, based in The Hague, Netherlands, will use its platform. APL and Accenture said they plan to pilot their product by the end of this year. Accenture said it has tested its technology with other pilot shipments that range from beer to medical supplies.

The cost savings could be visible in the companies' financial statements in about two years, Mr Kapoor of Bloomberg Intelligence said. "Shipping needs to stop thinking about itself as this standalone middle sector," said KD Adamson, chief executive officer of Futurenautics Group. "It needs to start thinking about how the different elements of shipping fit into other ecosystems." 

You are required to work as a group and submit a final report containing the following;

• Describe what block chain technology is, and how it can be applied to documentation in the maritime industry.

• Identify at least THREE issues or problems related to the application of blockchain technology in the industry.

• Discuss and propose suitable recommendations to address all the identified issues.

SH5007FP-Shipping Documentation

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200425 Economics

Q1 (2 marks)Given that the total demand of the whole year is 10,000 products, suppose the company is going to use the EOQ model for the accumulated demand of one year (10,000). In other words, ignore the monthly demand. Compute:1 Optimal order quantity (Q*) • Total cost • Frequency of ...

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MGMT 6170 - Managing Human Resources and Behavior

Learning Engagement # 1 Topic: Typical Supply Chain? Our reading this week presents the typical or traditional supply chain model (see figure 1.1). I Analyze this traditional figure as is by applying it, step-step, to a company/organization you are familiar with. This needs to be supported with two ...

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BHT4017 Retail and Manufacturing Logistics

Question: You are required to research and prepare an essay in response to the following: 1.Compare and contrast the inventory challenges associated with traditional store formats and e-retailing within the UK grocery market in light of recent volatility in demand and consumer buying patterns. 2 ...

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Management

*Must follow rubric structure* Brand owners of consumer products today are in the public spotlight, vulnerable to be publicly scrutinised for any issues in the supply chain as well as product safety & halal assurance for the consumer. Provide (1) a comprehensive review of risk management literat ...

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