- In collaboration with CargoSmart and China’s Shanghai Port Group, Tesla company is aiming at transforming the goods importation process in China using the new blockchain application.
- The companies aim at making the whole clearing process both cost and time effective.
Formalities related to shipping transactions are quite chaotic. Document verification which is paramount on the other end over time has proved to be lengthy and messy. Many documents e.g the port documents and bill of lading need to go through multiple parties that consumes a lot of time. U.S. electric car manufacturer Tesla is working on a way that will make importation of goods into China easier. The pilot used blockchain to share all relevant shipping data and documentation among all concerned parties, including Tesla.
The China Shipping industry is evidently one of the sectors that has recently shown interest in blockchain-based innovations. Tesla along with Chinese ship operator COSCO are aiming at rolling out an app that will shorten the normal cargo release time. This will, in turn, allow global logistic companies to possess ownership of goods once they have been cleared.
Blockchain all but set to revolutionize the shipping industry
In a bid towards adopting a paperless, seamless and trusted process at the port of Shanghai, CargoSmart has partnered with electric car company Tesla, COSCO and the Shanghai International Port Group (SIPG) to lessen consignee and shipment agent authentication process. CargoSmart recently stated that the new application will accelerate the digitization of the shipping enterprise procedures and the further increment of the current international supply chains.
The blockchain-based application uses blockchain technology to exchange real-time shipment data between the terminal operator and the carrier. The shipping processes become faster since documentation is digitized which in turn reduces all the shipment verification steps .
Plans for future upgrades?
Since December 2019 when Tesla with the help of Cosco and the Shanghai International Port Group (SIPG) streamlined its processes, the application has been updated. As at now it can boast of more helpful features like “terminal release, display laden gate out and the appointment date.” This in turn ensures that those waiting for their shipments will have better visibility of their cargoes.
More tests are scheduled to be conducted at ports in Xiamen, Qingdao and Laem Chabang in Thailand. This is to widen the scope by involving more carriers and terminals on the platform. The company is planning to roll out a blockchain association for the members of the Global Shipping Business Network.