IBM And Maersk Announce TradeLens, A Blockchain-Powered Global Supply Chain Platform
Tech giant IBM and Denmark-based global cargo shipping giant Maersk in a “joint collaboration” announced the launch of blockchain-powered TradeLens platform that aims to promote secure and efficient global trade by bringing multiple parties, operating in the logistics and cargo sector, together on a single platform.
According to the official press release, 94 organizations have already signed up to using TradeLens services and features. The pilot stage for the TradeLens platform is complete, however, participation is currently available through and early adopter program. A full-fledged commercial launch is expected by the end of the year.
While commenting on the launch of TradeLens, IBM general manager and head of blockchain, Marie Wieck, said: “We have seen a lot of skeptics talk about the validity of blockchain solutions. And I think with over 90 organizations and over 150 million events captured on the system we really are seeing proof in the pudding in terms of where people are spending their time to get benefits from blockchain.”
Three years back in 2015, the World Trade Organization has predicted that blockchain-powered solutions in the global supply chain can reduce costs by as much as 17.5% while exports from the developing nations are expected to rise more than 35%.
Wieck said: “We think that this really levels the playing field in terms of participants' access to a global platform, as well as sharing information economically. The scale that is building here is making that even more affordable.”
Wieck also said that users of the TradeLens platform can cut their shipping costs to as much as 40% while saving thousands of dollar in the process. Moreover, the use of blockchain platform will help users get a real-time view of their shipments as well as the location of all the nearest containers.
The two giants - IBM and Maersk said that they also plan to implement smart contract services for complex shipping orders while eliminating many of the middlemen in the process. The TradeLens blockchain platform will, however, operate on a chargeable basis but the pricing model has yet not been finalized. It is expected that the two companies will be charging on per containers basis while use of smart contract features might requires the users to pay additional charges.
For the TradeLens platform, IBM and Maersk will be implementing a different market model involving a “joint collaboration” between instead of the pre-existing joint venture model. Mike White, TradeLens leader for Maersk, said: "Our joint collaboration model allows us to better address key feedback from ecosystem participants while ensuring TradeLens interoperability and data protection among Maersk, IBM and all ecosystem participants. We strongly believe this will maximize industry adoption."