TradeLens is a blockchain-enabled shipping solution designed to promote efficient and secure global trade
COPENHAGEN, Denmark and ARMONK, NY—A.P. Moller –Maersk and IBM have announced TradeLens, developed by the two companies to apply blockchain to the global supply chain. TradeLens is a blockchain-enabled shipping solution designed, the companies said, to promote more efficient and secure global trade, bringing together various parties to support information sharing and transparency and spur industry-wide innovation.
As part of the TradeLens early adopter program, IBM and Maersk also announced that 94 organizations are involved or have agreed to participate on the TradeLens platform built on open standards. The TradeLens ecosystem currently includes:
TradeLens uses IBM Blockchain technology as the foundation for digital supply chains, empowering multiple trading partners to collaborate by establishing a single shared view of a transaction without compromising details, privacy or confidentiality. Shippers, shipping lines, freight forwarders, port and terminal operators, inland transportation and customs authorities can interact more efficiently through real-time access to shipping data and shipping documents, including IoT and sensor data ranging from temperature control to container weight.
Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in international trade. The trade document module, released under a beta program and called ClearWay, enables importers/exporters, customs brokers, trusted third parties such as customs, other government agencies, and NGOs to collaborate in cross-organizational business processes and information exchanges, all backed by a secure, non-repudiable audit trail.
During the 12-month trial, Maersk and IBM worked with dozens of partners to identify opportunities to prevent delays caused by documentation errors, information delays and other impediments. One example demonstrated how TradeLens can reduce the transit time of a shipment of packaging materials to a production line in the US by 40 percent, avoiding thousands of dollars in cost. Some supply chain participants estimate they could reduce the steps taken to answer basic operational questions such as “where is my container” from 10 steps and five people to, with TradeLens, one step and one person.
More than 154 million shipping events have been captured on the platform, including data such as arrival times of vessels and container “gate-in”, and documents such as customs releases, commercial invoices and bills of lading. This data is growing at a rate of close to one million events per day.
Traditionally, some of this data can be shared through the EDI systems commonly used in the supply chain industry but these systems are inflexible, complex, and can’t share data in real-time. Companies must often still share documents via email attachment, fax and courier. TradeLens can track critical data about every shipment in a supply chain, and offers an immutable record among all parties involved.