Chinese shipping giant COSCO and Alibaba’s Ant financial have signed a deal that will enable the shipping company to track goods on its supply chain. They will rely on Blockchain technology to implement this. COSCO is a Chinese based state-run container shipping co0mpanywhile Ant Financial is a subsidiary of Alibaba eCommerce group.
Details of the Blockchain Deal
Under this deal, the company will cooperate and connect cargo owners, logistic companies, ports and vessel operators. They will be connected through a digital platform that is underpinned by Blockchain technology. This system will allow them to share data and information with each other on the whereabouts of the goods and the exact location of the goods on real-time basis. They will also use Blockchain technology to send out the documentation that can’t be altered. Such documentation includes licenses and records of containers.
The two companies got into this deal on the 6th of July 2020. It is expected that this will be the way things will be handled by the shipping giant moving forward. Eric Jing, the executive chairman of Ant Financial group said that they look forward to working with COSCO in implementing this system and transforming the overall shipping industry in the region.
Other Shipping giants adopt Blockchain
There seems to be a general trend by players in the shipping industry to adopt Blockchain technology in their operations. COSCO and Ant Financial believe that this deal will result in significant cost savings on COSCO. It is envisaged that the deal will lead to a reduction in manpower and paperwork on the shipping company. It will also enable the company to better handle any emergencies that may arise in a prompt manner.
COSCO is another client that has been onboarded by Ant Financial in its Blockchain pursuits. Earlier in 2020, Ant Financial also signed a similar deal with China Merchant Holdings. Globally. Logistics companies such as Maersk Line, Mediterranean Shipping Company, and Hapag Lloyd of France have also signed deals to try out Blockchain tools on their operations.