Freight News, Sea

IBM launches Blockchain JV with Maersk for global trading

[ January 24, 2018   //   ]

Investor’s Business Daily recent reported that IBM has teamed up A.P. Moller-Maersk to provide a new platform for conducting global trade using blockchain technology.

Blockchain is the underlying technology used for trading cryptocurrencies such as Bitcoin. The technology also has been used to develop digital applications across financial services, supply chains, health care management, digital rights enforcement and the internet of things.

IBM and Maersk said the aim of the new company will be to offer a digitized platform built on open standards for use by the entire global shipping industry. The technology will provide more transparency and simplicity in the movement of goods across borders and trading zones, the companies said in a press release.

More than $4 trillion in goods are shipped each year, and more than 80% of the goods consumers use daily are carried by the ocean shipping industry, it said.

Investor’s Business Daily explained that Blockchain technology works as a shared public ledger, also called a distributed database, which tracks transactions and ensures that the record of those transactions remains transparent and tamper-proof.

IBM and Maersk began a collaboration in June 2016 to build new blockchain and cloud-based technologies. Since then, they said, multiple parties have piloted the platform including DuPont, Dow Chemical, Port Houston and U.S. Customs and Border Protection.

IBM is an early investor in blockchain technology and has already worked with more than 400 clients to implement blockchain applications.

IBM and Maersk intend to commercialize and scale their blockchain solutions to a broader group of corporations, many of whom already are exploring ways to use the new platform, including General Motors and Procter & Gamble to streamline the complex supply chains they operate.