Implementing Blockchain Application, Do You Think Blockchain Will Eventually Gain Popularity in The Shipping Industry?

4.
Considering the key characteristics of blockchain and the challenges of

implementing blockchain application, do you think blockchain will
eventually gain popularity in the shipping industry?
Yes,
Popularity gained when value created, what could blockchain added value for the shipping
industry?
1. Fast processing time and real time updates; the exchanges of information and procedures
which take weeks to be completed even within a matter of minutes may happen instead of
sending the documents to different parties with longer time and costs, it also increases accuracy
as everything is processed automatically. Improved transparency and visibility as blockchain
technology uses mechanisms to make sure that the data are accurate and verifiable, also, better
security as all the data are encrypted and no party can manipulate the data at any time which
reflect on effective risk management.
2. Blockchain technology help in cutting costs specially for the documentations fees, paperwork
and delays, also will have an environmental effect by digitalize the paperwork which will
decrease trees cutting and ground waste of papers which will reflect on the environment by
reducing carbon footprint and waste.
3. Smart Contracts which is done via program that executed in blockchain and both parties
cannot modify it, Smart contracts are entirely independent; pre-specified and negotiated
measures are automatically taken when contractual terms are reached.
Blockchain as a technology is available for all, as everyone can access the technology which
means less barriers to entry and increase the competitiveness within the market. Blockchain is
not only a new technology for transportation, but will be a crucial ability to suit other new
technology such as AI, Clouds, Cybersecurity, IoT and electronic digital platforms that is why
Shipping companies will be easier to adapt the blockchain technology as they already have the
digital platform and needs less standardization.
“Blockchain will help to reduce substantial duplication of resources by providing a centralized

view of all transactions taking place within a complex network of parties. Blockchain can assist
all shipping parties to increase reliability, reduce or eradicate fraud and mistakes, enhance the
management of inventories, mitigate mail costs, reduce paperwork-related delays and waste, and
resolve problems more quickly. It will raise global GDP by almost 5% and overall trade value by
15%.”
The potential of blockchain technology in logistics
5. How should Maersk move ahead to create more value from blockchain?
Which key issues should it consider?
The main key challenges are Industry adoption: which is the main challenge for
blockchain technology success in shipping industry, as higher accuracy and secure
exchange of information between parties is the most attractive advantage specially
for the stakeholders, as the value increases by more parties implement the
technology. In other words, when more Supply Chain players engage, blockchain
becomes increasingly important and turns into a business standard.
Another challenge is the standards development as the shipping industry business

is a competitive market, there will be several blockchains available, so there should
be a standards and contracts particularly in the sense of standardization between
blockchains. Ex. the Blockchain in Transport Alliance in the logistics industry.
Scarcity in developers are a serious issue which could be solved by improving the
number of developers by offering training programs by the blockchain providers
and increasing the market awareness about the benefits of blockchain technology
within the shipping industry to attract more alliances and competitors to sign for
blockchain technology
conduct pilot projects with other companies will Increase the value proposition
especially with the improvement of financial transactions, supply chain operations,
and insurance agreement implementation.
Scalability is one of the major issues with blockchain, so Maersk can offer training
for engineers from blockchain providers in order to help them understand the
implementation process and increase the awareness in the market.
Increasing the security is one of the attractive advantages by applying strong

cybersecurity system to protect the data, Sharing the best practice from using their
platform Tradelens which have successful pilot projects in Saudi Arabia and
Canada which attract also the governments and customs Authorities to participate
in blockchain technology to Suppress global trade instability.
Increase the understanding of the potential value of implementing their platform
which ensures that the company will be a catalyst in digital transformation and
help them accomplish their desire them deliver end-to-end approaches for shipping
and distribution.
Bibliography:
World Economic Forum’s Report. Enabling Trade. Valuing Growth Opportunities. Geneva. Available
online: http://www3.weforum.org/docs/WEF_SCT_EnablingTrade_Report_2013.pdf (accessed on 25
March 2020).
Levins, C., 2018. 9 Ways Blockchain Will Affect The Shipping Industry. [online] Airseacontainers.com.
Available at: <https://www.airseacontainers.com/blog/9-ways-blockchain-will-affect-the-shipping-
industry/> [Accessed 25 March 2020].
Gockel, B., Acar, T., Kückelhaus, M. and Chung, G., 2020. BLOCKCHAIN IN LOGISTICS. [ebook]
Troisdorf: DHL Customer Solutions & Innovation, pp.7,12,13. Available at:
<https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo-core-blockchain-trend-
report.pdf> [Accessed 25 March 2020].
Jović, M., Filipović, M., Tijan, E. and Jardas, M., 2019. A Review of Blockchain Technology
Implementation in Shipping Industry. Pomorstvo, 33(2), pp.140-148.
Madsen, J., 2019. A Game Changer For Global Trade. [online] maersk.com. Available at:
<https://www.maersk.com/news/articles/2019/09/20/a-game-changer-for-global-trade> [Accessed 25
March 2020].

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4.

Considering the key characteristics of blockchain and the challenges of

“Blockchain will help to reduce substantial duplication of resources by providing a centralized

Another challenge is the standards development as the shipping industry business

Increasing the security is one of the attractive advantages by applying strong

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