Shipping Giant MTI Adds Blockchain to Supply Chainbr>
Logistics company Marine Transport International (MTI) has announced a successful public blockchain pilot in the global shipping industry.
The results of the pilot have been verified by scientists at the University of Copenhagen and maritime technology leads at Blockchain Labs for Open Collaboration (BLOC). MTI, in collaboration with Agility Sciences, has released a whitepaper which details the deployment of the Container Streams system in a supply chain environment.
In the pilot, a shared blockchain ledger connected supplier, shipper, load point, customs, and terminal. The pilot demonstrated that the technology will lead to improved connectivity, efficiency, and security in the logistics industry. MTI said it could see “up to 90 percent reductions” in administrative costs.
“This pilot demonstrates the great potential for distributed ledger technologies to be used in improving supply chain processes,” said Karim Jabbar, a PhD fellow at the Department of Computer Science at the University of Copenhagen. “The Container Streams system is unique in the fact that it does not require the complete replacement of existing systems – instead, MTI’s solution allows complete interoperability with existing legacy infrastructure,”
MTI CEO Jody Cleworth said that the results of this successful pilot demonstrate the strengths of blockchain technology when deployed to link the various actors in the supply chain. He added that they are confident that firms throughout the logistics industry will see a broad spectrum of benefits stemming from blockchain deployment.
“The blockchain has proven to be an excellent way of connecting the different parties involved in any supply chain environment due to the transparency and security-by-design of the technology,” said Cleworth. “A blockchain-enabled supply chain is highly resilient to cyberattack – a copy of the essential shipping data is stored on each node on a decentralized network, meaning that even if one node is compromised, the data is safe nevertheless.”