Tag: logistics

FinTech in Belt and Road – Transforming French Freight Logistics with Blockchain

The Fourth Belt and Road Summit was held over two days in September at the Hong Kong Convention and Exhibition Centre (HKCEC). The Summit was organized in a joint effort by the Hong Kong Government, the Hong Kong Trade and Development Council (HKTDC). The event was attended by top government officials and business leaders from Hong Kong, China and countries along the Belt and Road.The Belt and Road Initiative (BRI) seeks to improve trade connectivity by upgrading transport infrastructure across much of Eurasia. The undertaking spans a massive geographic area covering as many as 63 countries, accounting for sixty percent of the world’s population and thirty percent of global GDP.Blockchain.News took the opportunity to speak with the attending representatives from Europe, Asia and the Middle East to learn more about their countries’ latest developments related to the Belt and Road Initiative.

Europe

The Belt and Road project centers around two main routes over land and sea. On land, the focus is on transport and energy infrastructure for the Silk Road Economic Belt (the Belt). By sea, investments in new ports serve as pillars for promoting trade along the Maritime Silk Road (the Road). Both will impact Europe massively. The land route ends up in Europe and the sea route is currently the busiest trade corridor between Europe and China.The continued efforts to harness the potential and enhance the efficiency of these land and sea routes, has been met with significant historical challenges. In cargo and freight there has been no common platform for operations and the responsibility is most often shared among a multitude of operators leading to complications of transparency, online tracking, predictability, accessibility and booking within trade routes. In France, decentralized transport and logistics platforms based on Blockchain are seen as the innovative solution to historical issues.

Invest in Provence and the Port of Marseilles

The Invest in Provence Agency is the official economic board for the Provence region of southern France. Philippe Stefanini, CEO of Invest in Provence explained, “The Agency supports international companies, and especially Chinese companies. Our services are free and confidential and we can support these companies by connecting them with the right partners and location for their operations.”The Port of Marseille is fast becoming the central digital port connecting Europe to Africa, China and the Middle East. Stefanini said, “The Port of Marseille represents one of the main business expansion opportunities for the Belt and Road Initiative. We have 14 digital submarine cables and we will soon welcome the Peace cable from China, making us the main digital port for Chinese submarine cables. As a leading digital connection hub, we are able to support FinTech organizations who wish to deliver their services to customers in Europe with direct cable links from China and Asia.” He continued, “In terms of logistics, transporting goods from China to Europe is four days shorter than any alternative route, thus offering the quickest way for Chinese companies to enter the European Market.” 

Marseille and its port are looking to develop cooperation on industrial and logistic projects with China fostering reciprocity and focused on high social and environmental standards. Stefanini highlighted, “The China Merchants have invested in the Port of Marseilles Containers Platform. Our largest investments so far have come from China Mobile, China Unicom and China Telecom who have recently established their main infrastructure for Southern Europe in Marseille’s digital port.”  

Philippe Stefanini, on the opportunities to Invest in Provence due to recent macroeconomic uncertainties

While the China-US trade war may be a macro-economic concern for most, Stefanini believes that, “Mainland Europe will continue to be a strong and stable partner for Chinese companies and there is an ever-increasing willingness to foster further business opportunities.”Blockchain Enhanced Freight Logistics 

The Marseille Fos Port Authority is among the financial backers of a Blockchain technology pilot scheme that aims to demonstrate enhanced freight logistics on the Mediterranean-Rhone-Saone (MeRS) axis. 

Stephane Reiche, on how blockchain takes flight in freight logistics across the MeRS

Offering comment on the rationale for the blockchain initiative—Stephan Reiche, General Delegate of Marseille Fos Port Authority said, “Many of the actors along the MeRS axis supply chain are still not digitalized, like truck drivers for example. They still exchange paper documents and certificates manually which is too inefficient for 21st Century logistics and this is an area where blockchain can be leveraged.” He continued, “With blockchain, you have the possibility to give “certified users direct access to protected documentation, enabling numerous parties to share data without the need for dedicated infrastructure.”

Marseille Fos Port Authority has been working with three startups, each one specializing in a different component of the logistics blockchain—cargo tracking specialist Marseille Gyptis International (MGI); BuyCo, a collaborative platform for container shipping; and blockchain solutions specialist KeeeX. Further elaborating on these collaborations, Reiche said, “MGI developed our Cargo Community System which checks the administrative status of every container coming through the port. BuyCo’s software allows for seamless merging of the different logistics actors into one supply chain, so containers moving from shipping routes to the land routes are synchronized. KeeeX specializes in blockchain certification.”

The blockchain system has been tested by two industrial companies, Kem one and Alteo and Reiche reports, “Everything has gone very smoothly, this blockchain initiative has increased logistics transparency as all the information is being synchronized on the blockchain so that it can be accessed by everyone involved. At any moment we know exactly where the cargo is in the logistics chain.”

The blockchain initiative is in its live testing stage and so far has produced exciting results and based on this success, Reiche predicts that the project could expand to other regions in France and ports throughout the Mediterranean Sea. He concluded, “In June 2018, we set up the Medports Association and we would like to implement this system through the different associations and further increase the transparency and connectivity of logistics throughout the Mediterranean utilizing the same blockchain technology.”

The Greater Paris Project 

10 years ago, French President Nicolas Sarkozy launched the Greater Paris Project, with the aim of transforming the Paris metropolitan area into a major world and European metropolis for the 21st century, aimed at improving the living environment of the inhabitants, correcting the territorial inequalities and building a sustainable city. Alexandre Missoffe, Managing Director of Greater Paris-Investment Agency describes the project as, “One of the most important human development projects in Europe over the last few decades.” He explained, “We have a long-term strategy, backed by a 40 million dollar investment from the French Government, to better connect the greater Paris region with it suburbs and organize the Paris region as a cluster of hubs for finance, scientific research, biotechnology, and sustainable city industry.”

Alexandre Missoffe, on the collaboration with HKTDC under the Belt and Road initiative

Regarding the Belt and Road Initiative, Missoffe said, “Our perception is that what we are trying to achieve with the Greater Paris Project is in sync with the ideas and philosophy of the Belt and Road—creating the infrastructure to support better trade, communication and connectivity.” He highlighted, “We have been working with the HKTDC over the last three years on the Belt and Road Portal—making financial sharing investments but also sharing experience and expertise. For example, the achievements of the Hong Kong MTR serves as great inspiration for us as a significant part of the enhancement of Paris’ connectivity is 200 kilometers of new metro.”

Blockchain and FinTech in Paris

With Brexit looming in Europe, Misoffe has noted a lot of large banks, key financial players and organizations have been relocating to the greater Paris area. He said, “A part of our strategy is to create the ideal ecosystem to foster the growth of the finance industry and especially FinTech in Paris. We have set up an incubation program dedicated to FinTech startups, this initiative complements our wonderful schools, engineering institutes, and world class research centers. We are positioning Paris as a very attractive place for FinTech.”

FinTech is basically the use of technology to deliver banking and financial services making it the ideal area for the implementation of a blockchain which offers unparalleled security. Misoffe explained, “Blockchain typically goes hand in hand with FinTech but also with sustainable and smart city development. In high urban environments, we are constantly exchanging data in the way we use the city’s facilities, hospitals, transportation etc. The data that is shared must be protected and kept authenticate and blockchain and distributed ledger technologically (DLT) can achieve that. We are working closely with SAP to put blockchain at the heart of our sustainable city.”  

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ConsolFreight Releases New Proof Of Concept To Advance The Role Of Logistics Providers In Trade Finance

ConsolFreight released its new Proof of Concept report “Trade Forward” at the IoT Solutions World Congress in Barcelona. The ambitious project has the support of Telefonica, who provided connectivity through Kite, their IoT connectivity platform.

It also included the collaboration of key organizations such as EOS Dublin using EOSIO blockchain technology, the Florida Blockchain Foundation, and Anova Marine, which provided insurance coverage to the transported cargo.

The Proof of Concept aims to provide liquidity, create new revenue streams, and ultimately advance the role of freight forwarders in the Supply Chain. Trade Forward is a new business model of collaboration amongst insurance companies, financial institutions, and logistics providers.

This model, where the freight forwarders are the centerpiece, brings the following benefits:

● SMEs financial inclusion 

● Full oversight of trade asset movement

● Streamline data exchange between the multiple parties

● Risk mitigation and redistribution along the Supply Chain

● Optimized operational liquidity for exporters and importers

● Decreased paperwork and institutional bureaucracy

“Banks are short-sighted in determining and validating the value of the goods being financed. They have drawn a very distinctive line between Logistics and Financial institutions, where the value of the assets is entirely disconnected from the process. Thus, leaving an untapped market of unfulfilled credit demand estimated at $1.6 trillion,” says ConsolFreight’s CEO, Ernesto Vila.

This revolutionary test was carried out by a dedicated team of experts in blockchain, logistics, supply chain management, and finance. Members of the ConsolFreight ecosystem are conducting pilots along with companies like Telefonica and Anova Marine. These partnerships are allowing smaller players to get access to larger organization solutions, generating technological inclusion.

The first TradeForward shipment was handled by freight forwarder Tech Cargo in the region of North America. The following shipments will be carried out by Freight and Transit Co. LTD to enable non-traditional trade finance in the African continent. Additional pilots in LATAM will be carried out by ADEKO Enterprises S.A., Globalog S.A., and Tree Logistics.

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Will Blockchain Make Shipping more Efficient in the Future?

Shipping in some cases is not restricted to the transportation of cargo by ships, but it refers to the transportation of items by mail of any means, the form of transportation could be air, road or train, but the most used form is transportation by sea. 

According to the Ghana Shipping Guide, 90% of the trade in the world is dependent on the shipping industry; in other words, shipping is the lifeblood of the world’s economy. The shipping industry is one of the largest business industries ever and continues to expand, the international chamber of shipping (ICS) reports that there are over 50,000 ships at sea, that travel from nation to nation, carrying all types of cargo. 

Although the shipping industry is continuously increasing in size and technological advancement, it is still plagued by its reliance on archaic systems and processes to conduct business, which in most cases is not sufficient to deal with the modern challenges facing shipping. 

The Pros and Cons we See Today 

The world’s largest shipping company, Maersk- in conjunction with IBM, launched in a blockchain venture, called TradeLens, aimed at transforming how trading activities are carried out. Blockchain has found itself in many industries all around the globe where it has either been used to solve problems or enhance performance and now we see it growing need in the shipping industry. But a significant issue of how exactly it can create an impact in this space still comes to mind. Here are some of the ways blockchain technology can make shipping more efficient: 

1. Payment and dispute: According to Winnesota, it is estimated that about $140 billion is trapped in payment disputes that haven’t been settled, these losses recorded by business owners could inhibit the overall growth of this sector as it reduces the pace of advancement. For almost every invoice, the company it belongs to has to wait for up to 42 days before it can receive its payment. Such unnecessary delays will be eliminated or drastically reduced because blockchain technology will provide clarity with each financial payment, and also ensure money is delivered speedily to those who own it. 

2. Cost of administration:  Administration cost makes up to at least 20% of the shipping cost, which is mostly since most shipping companies rely on the use of paper to conduct their transactions. A shipment during its course of delivery could pass through the hands of 30 different organizations, which requires people at every station to monitor it and ensure delivery. With the use of blockchain technology, the system would be digitized thereby eliminating any need for traditional documentation, as every piece of information will be entered and stored on the blockchain ledger, it will also reduce the cost spent on paying employees, as the blockchain will be responsible for the security and monitoring of goods. 

3. Efficiency in quality delivery: it is very common for cargo to get damaged or lost during shipment, when this happens it affects customer perception of the company’s service and lead may lead to instances where customers refuse to patronize them again. With the introduction of blockchain technology, customers can monitor the location of their products from the comfort of their homes, -this has already been implemented in some companies- in addition to this customers will also be able to verify the quality of their products, by accessing the certificate of origin from the manufacturer. 

Challenges Faced 

However disruptive and beneficial this technology might be to this sector there might be some drawbacks: 

1. Issues of flexibility 

In every transaction involving delivery, there would always be deliveries with unforeseen circumstances, which would be best addressed through a commercial appreciate this flexibility might be hindered. 

2. Global adoption 

One of the significant disadvantages faced by this technology in every aspect it can be implemented is in its adoption as many countries are yet to grasp the concept of what potential this technology holds, let alone implementing its usage. However, this might change in the coming years. 

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How Can Blockchain in IoT Market Grow 180 times by 2026?

How Blockchain in IoT  is Transforming the Modern World

The combination of Internet of Things (IoT) and blockchain has appeared to be one of the most exhilarating use cases for the modern era of technology. New opportunities are opened up by adopting IoT-based technologies in various aspects of our daily lives, such as manufacturing, intelligent transportation, and home automation. With the evolution of embedded network and computing hardware technology, the combination of blockchain in IoT technologies makes the large-scale autonomous systems of IoT to come into being. Two big companies, Bosch and Volkswagen believe that the IoT market places and the decentralized data should co-exist.

Before understanding how the combination of IoT and blockchain can bring change to the world, let us first find out what is blockchain and what is IoT.

What is Blockchain?

Based on the concept of a decentralized network, the blockchain technology processes and records transactions securely and transparently. Blockchain is a chain of blocks that comprehend the digital records, which cannot be deleted or altered when added to the blockchain. These saved records are distributed across all the nodes in the network. Every node contains an updated copy of the ledger at all times.

When it comes to saving data or processing payments, every technology company whether it is Uber or Airbnb pretends as a centralized entity. Based on decentralization concepts, blockchain protects the data from a few centralized bodies, which reduces the risk of information hacking or theft.

What is IoT?

A smartphone is the best example to better understand the basics of IoT. Today, a smartphone is the most essential device used for many of our needs from playing games, listening to music, watching movies, communicating with peers, checking messages or emails.

However, the phone did not have all these capabilities a few years ago. People could only make a call or send a message on their mobile phones.

The advent of internet facilitates the connection between mobile phones in file sharing and data transfer. This is the basic principle of IoT that the devices or objects become “smarter” when connected to the internet. There are 3 categories of IoT devices: 

Things that act based on the data received

For example, smart TVs, wearable devices, and 3D printers take action after collecting data from the sensors.

Things that transmit information based on data collected

For example, light sensors, moisture sensors, and motion sensors, moisture sensors send relevant data for improved decision-making.

Things that fulfill both functionalities

To find the amount of water needed by the crops, the sensors of IoT based farming gather information about soil moisture. Therefore, it is crucial to protect the information throughout its lifecycle as the efficiency of IoT relies on the information existed in the system.

Why IoT needs Blockchain?

The dependency of IoT on centralized communication in order to interact with the system is its biggest drawback of IoT. All the devices in IoT setup are recognized, linked and authorized via centralized cloud servers. However, networking equipment and centralized clouds used in the present IoT solutions have high infrastructure and maintenance costs. As IoT systems are associated with these service areas, scalability can become a critical issue.

As the sum of IoT devices surges, the cost for the number of interactions between the devices also increases. This is a major reason for large IoT networks don’t get support from the current systems.

Cloud servers are helpless to a single point of failure. This means that the entire ecosystem can be affected at a certain point. As revealed by Microsoft’s survey, 97% of respondents are concerned about the security of IoT devices and infrastructure, which partly explained that 30% of IoT projects failed in the Proof-of-Concept stage. Therefore, instead of using a server/client model, making use of a peer-to-peer model instead can be a precise solution that the IoT industry needs.

With decentralization in place, computation and storage needs can be distributed across millions of IoT devices. Therefore, the use of blockchain in IoT can benefit the IoT devices to scale up proficiently.

How can Blockchain Help in IoT?

As the blockchain is decentralized and tamper-proof, it can do what IoT precisely requires. Billions of connected devices can be tracked in the network by using blockchain IoT. With the increased integration between IoT devices and blockchain across industries, the global blockchain IoT market is estimated to grow exponentially and is forecasted to a market size of $5.8 billion by 2026, compared to 32 million in 2018.

Integrating the blockchain in IoT devices can also lower the costs of managing and installing servers for an IoT network. The cryptographic algorithms are used by blockchain to ensure the security and confidentiality of the data existing on the IoT network. As blockchain IoT does not have a single thread of communication, it also protects the network from the man-in-middle attacks.

Here are some of the exciting use cases of Blockchain IoT:

·  Supply Chain & Logistics

When blockchain is combined with IoT, the traceability of the supply chain network can be improved. IoT sensors like GPS, motion sensors, or temperature sensors connected to the vehicles provide the info of shipment status. Blockchain stores the data, when it is fetched from the sensors. This brings transparency, auditability, and traceability in the system.

·  Smart Homes

IoT devices play a major role in allowing smartphones to control the home security system. However, the centralized model of IoT that exchanges information generated by IoT sensors lack security standards and ownership of data. When the gathered data is moved from IoT devices to the blockchain it can solve many security issues.

·  Parking Solutions

NetObjex company has come up with an idea of a smart parking solution with blockchain IoT. IoT sensors are used in the smart parking technology by which, the car drivers can automatically with crypto wallets and can also find the empty parking space easily. There are several industries who have now started to experiment with the potential of blockchain IoT networks.

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VeChain and Bayer China Team up for Blockchain-based Healthcare Project, Here’s What it Means for China

Pharmaceutical giant Bayer is now working with the Chinese crypto project VeChain on a blockchain-based medical traceability and supply chain program. 

In a tweet by the VeChain Foundation, the firm stated Bayer China – the Far Eastern unit of the medical giant – will utilize the former’s blockchain expertise to track clinical drugs across the latter’s nationwide supply chain.

Called “CSecure,” the platform allows firms to load a batch number to a specific product, such as tablets or syrups, and “stamp” it on the blockchain. All drugs can then be tracked in transit across the supply chain, using a native method of participant information and timestamps along the way. No data can be tampered with by any unauthorised third-party, owing to the inherent design of blockchain systems. 

However, VeChain’s VET tokens will not feature in the end-to-end process. Cryptocurrencies and altcoins remain banned and China and across the world, meaning all incentives will presumably be paid out in RMB than a token. 

Instead, VeChain’s proprietary ToolChain software shall be deployed. The product is a Blockchain-as-a-Service (BaaS) protocol geared at enterprises, allowing for the creation of distributed systems as per the company’s requirements. 

VeChain CEO and co-founder Sunny Lu spoke of the development: “We’ve experienced the rigorousness of the medical industry by working with Bayer China.” 

China’s pandemic-stricken environment stands to gain with the blockchain, especially when firms like VeChain partner with private corporations to provide services and ensure verifiability. 

Several other countries are turning to blockchain and DLT-run frameworks to improve the administration of timely healthcare facilities, bolster medical supply chain safety, and increase optimization of revenues. Earlier last week, hospitals in the US started work on a similar project to ensure authenticity in the medical industry, specifically the credentials of doctors and nurses. 

Verification of physicians takes three or four months, the report noted. In this regard, blockchains help quicken the process by ensuring verification comes from “authorized” sources and have been untampered with, eliminating the need for a “time-consuming manual intervention.”South Korea is another country moving for large-scale blockchain-based medical solutions In January 2020, as Blockchain.News reported, the Seoul Medical launch a blockchain-enabled medical information mobile app dubbed Seoul Care, helping patients plan medical treatments, look up prescription details, and check test results using their smartphones.

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Singapore to Pump $8.9 Million Into National Blockchain Ecosystem

The Singaporean government has deployed a $8.9 million (S$12 million) national blockchain initiative dubbed the Singapore Blockchain Innovation Program (SBIP) as it seeks to become a global player in the space.

This SBIP initiative was jointly launched by Enterprise Singapore (ESG), the National Research Foundation Singapore (ESG), and the Infocomm Media Development Authority (IMDA).

The conceptualization of blockchain-related projects

As a way to show its commitment to boost Singapore’s blockchain ecosystem, SBIP intends to engage nearly 75 companies spread across the divide from multinational corporations to large local enterprises. These companies will be pivotal in conceptualizing 17 blockchain-related projects in different industries like supply chain, logistics, and trade within the next three years.

For instance, SBIP will join forces with DiMuto, an agritech supply chain firm, in deploying blockchain technology to trace and track high-valued perishables. As a result, farmers’ creditworthiness will be enhanced.

Peter Ong, the ESG chairman, acknowledged:

“Blockchain technology helps to embed trust in applications spanning logistics and supply chains, trade financing to digital identities and credentials. The acceleration of innovative business solutions under the Singapore Blockchain Innovation Programme will help our enterprises be more globally connected and competitive.”

Stemming blockchain scalability

SBIP seeks to address the issue of blockchain scalability, especially in tech environments with high transaction rates. For instance, it will boost interoperability, which will thrust value exchange across various systems. The Singaporean government also intends to expand its blockchain talent pool as this will give ICT firms a broader scope when tapping into this cutting-edge technology.

IMDA chief executive Lew Chuen Hong affirmed:

“As the first major industry-driven blockchain research program, our intent is to proliferate blockchain adoption to a much broader set of industries, beyond just finance. These efforts allow Singapore to build a strong blockchain ecosystem and establish our role as a Trust Hub.”

Last month, Singapore collaborated with the Australian Border Force (ABF) in a blockchain trial to enhance cross border trade. This blockchain infrastructure was to make business between the two nations simpler, paperless, and more cost-efficient.

Blockchain Tech Expected to Facilitate Logistics Market Growth to $71.96B by 2026

Blockchain technology is expected to be a major trend fueling the logistics market growth, according to a report by Technavio, a global technology research and advisory company.

Blockchain’s impact is anticipated to push the value of the logistics market to $71.96 billion by 2026. As a result, leading to a compound annual growth rate (CAGR) of 1.39% between 2021 and 2026.

Blockchain renders more operations visibility to streamline logistics processes, enabling effective product tracking. Per the report:

“Due to the numerous benefits of blockchain technology, vendors offering logistics services are partnering with blockchain technology providers to develop platforms that will further increase security and transparency in the logistics industry.”

Source: Technavio

Based on changing market and weather conditions, the consumer goods sector is expected to enhance the use of blockchain in logistics. The report noted:

“The rising global temperatures, mostly during summers, are propelling the need for refrigerators and air conditioners among households. Such changing consumer preferences will require enterprises to use logistics services to deliver products to retail stores as well as other customers.”

The Asia-Pacific (APAC) region is anticipated to lead the pack by accounting for 60% of the market’s growth, with India, Japan, and China taking the lion’s share. 

Some factors attributed to this trend entail APAC’s large consumer base for food, beverage, and healthcare products.

On the other hand, Technavio expects e-commerce growth and cross-border trade increase to boost the need for blockchain technology in the logistics market.

Meanwhile, Cardano founder Charles Hoskinson recently acknowledged that blockchain technology could radically revamp government structures from the whelms of archaic processes to modern ones. 

Global Shipping Business Network (GSBN) Bullish on Blockchain

Blockchain technology has had a rocky start in the logistics industry, with Danish logistics firm Maersk terminating its blockchain-based supply chain platform last year. However, Hong Kong-based Global Shipping Business Network (GSBN) has not given up on blockchain applications in global trade. In fact, the nonprofit consortium sees blockchain as a crucial logistics tool in the long term.

GSBN currently operates one of the world’s largest platforms that can be described as an alternative to Maersk’s TradeLens tool, according to a report by the South China Morning Post. The platform is based on a permissioned blockchain with strong data governance, allowing only authorized parties to contribute and consume shipping-related data.

Since launching its blockchain-based shipping platform in 2021, GSBN has tapped major shipping partners like Cosco, Orient Overseas Container Line, and Hapag-Lloyd. In addition, the organization has also reached partnerships with terminal operators such as Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports. Among the members, only German Hapag-Lloyd and Singaporean PSA International are not based in mainland China or Hong Kong.

Despite past failures of major industry firms like Maersk in implementing similar projects, GSBN CEO Bertrand Chen is confident that blockchain technology has yet to fully catch on and its adoption may take another decade. However, with the world’s largest shipping companies on board, the potential of blockchain in logistics seems promising.

The use of blockchain technology in the logistics industry has been a topic of discussion for several years. It is seen as a tool that can increase transparency and efficiency, as well as reduce fraud and errors. However, the adoption of blockchain has been slow due to concerns about security, scalability, and interoperability.

GSBN’s permissioned blockchain platform addresses some of these concerns. With strong data governance, it allows only authorized parties to access data, reducing the risk of data breaches. In addition, by bringing together major shipping partners and terminal operators, the platform aims to increase efficiency and reduce the time and costs associated with shipping.

While Maersk’s failed blockchain platform may have dampened enthusiasm for blockchain in logistics, GSBN’s platform shows that there is still potential for blockchain in the industry. As the platform gains more traction and more companies adopt blockchain technology, the logistics industry may see a shift towards more transparent and efficient supply chain management.

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