Blockchain for Bill of Lading - an Efficient Solution?
Image Courtesy: CargoX
CargoX is the independent supplier of blockchain-based Smart Bill of Lading (Smart B/L™) solutions that provide an extremely fast, safe, reliable, and cost-effective way to process Bills of Lading anywhere in the world. The process is completely digital. CargoX developed a decentralized platform based on the Ethereum network, and it has a pipeline of promising future products in place to be developed rapidly for the supply chain industry.
Together with insurance companies and banks CargoX is already actively developing an equivalent to the Letter of Credit and we are also working on Switch Bill of Lading for the conventional cargo shipping industry.
The ecosystem will enable companies to offer their logistics services freely and accept payment in USD or cryptocurrency equally. Increased levels of trust and historic transaction traceability, based on the nature on blockchain itself, support the vision of such a future for logistics services.
“Our CargoX Smart B/L solution is production ready and we are already developing new blockchain-based products for business users. We find the Bill of Lading to be of unrivalled importance in the shipping and logistics industry, which is why we brought the solution to the market with lightning speed. The B/L as a document of title carries the value of the goods shipped; it must be processed safely, quickly, and at the best price possible, without damage or loss, ever - and so do other important documents in the business! This is the vision that we offer to our business customers and partners, and we are focused on proactively building the digital future of logistics,” says Stefan Kukman, CEO and founder of CargoX, who has served in the logistics industry for over a decade.
Benefits of the CargoX Smart B/L blockchain solution include, among other things, the highest level of security. Documents absolutely cannot get lost and they are encrypted and securely stored on the blockchain, accessible only with the B/L parties’ private keys. Decentralized storage makes blockchain applications immune to hacker attacks.
Forwarders, NVOCCs, exporters/importers, platforms providing solutions for logistics & supply chain industries, forwarder alliances and networks, and all companies whose workflows include sending important documents will benefit greatly from solutions such as the CargoX Smart B/L.
Bills of Lading (B/L) are the most important document in the global logistics industry. Bill of Lading is a mandatory document issued at the port of departure for every container boarding an ocean cargo ship.
Millions of paper Bill of Lading documents are issued every year.
Only the holder of original physical paper document can claim the container at the destination port, which makes the value of Bill of Lading document equal to the value of shipped goods. Unfortunately, paper Bill of Lading documents themselves must be shipped all over the world, which is the root cause of many of the challenges plaguing the supply chain industry.
The paper documents need to be sent from the exporter (Asia) to importer (Europe or USA), and have an average travel time of more than a week, while swapping hands between 2–3 courier delivery services.
The process to resolve a damaged, lost, or even stolen Bill of Lading document is a complete bureaucratic nightmare and it takes over 20 days to re-issue a replacement Bill of Lading. Issuing and transporting one paper Bill of Lading document costs up to $180.
CargoX’s Smart B/L™ solution based on the public Ethereum blockchain completely replaces old-school paper Bill of Lading documents and drives extremely fast, safe, reliable and cost-effective processing of Bills of Lading - anywhere in the world.
Releasing cargo, however, is just one of the headaches that the Smart B/L™ solves. More of the countless benefits include built-in archiving and limitless expandability. Our IoT, banking and financial partnerships will soon result in value-added services such as cargo tracking (location, movements, temperature, origin/producer), insurance, quality control and banking escrow services through the Smart Letter of Credit. In collaboration with MakerDAO we further plan to facilitate the first on-chain cargo payment and settlement using DAI crypto stable currency.
The blockchain-backed CargoX Smart B/L™ brings users superior service at a fraction of the cost (<$15).