The largest of Technology IBM and the Pacific International Lines are the biggest shippers in Singapore. They have made a recent partnership to digitize one of the most important document sin shipping called the Bill of Lading.
These two companies together design and create an electronic bill of Lading called e-BL. The product will be based on the blockchain technology. It will be used in the international trade. It is served as evidence of ownership of goods, contract of carriage and receipt of shipment. It will be used by banks and the other financial institutions to offer trade financing.
The multiple parties handle bills of Lading, so there is a risk of losing them, and even fraud is existing and worrisome. Because of this, it can be the perfect solution to just use the blockchain technology in this kind of situation as the e-BL. It will be using the blockchain technology which has an immutable ledger. It cannot be changed, and it cannot be lost too.
IBM is set to develop a technology which will decrease the handling costs of this important document and hoping to reduce frauds and hacks. According to the executive director of PIL, Lisa Teo, the information flow is handled manually which slows it down the whole process and makes many gaps in the communication.
Teo is the blockchain exchange could be used to allow for an exchange of documents and the information directly via the decentralized network in a way that will boost transparency and remove dispute forgeries and unnecessary risks for the industry.
The combination between two companies is backed by some of the other figures like the Singapore Shipping Association, Bank of China, Port Authority of Singapore, Singapore customs and Infocomm Media Development Authority.
PIL signed a memorandum of understanding with the IBM Company for the e-BL initiative and to work on proof of concept blockchain solution. It could increase the order of the supply chain network in Singapore.
Tan Chong Mong, CEO of Port Authority Singapore has pointed out that the blockchain technology could help in the international expansion of trading.
He also thinks that the blockchain can reduce numerous inefficiencies and the gaps that exist in the system will grow.
IBM has already combined in another shipping line solution last year with Maersk Line. It is the biggest ocean container shipper in the globe. This company used the hyper ledger Fabric Technology as the framework for the technology.