SEOUL: Hyundai Merchant Marine (HMM) has announced that it has completed its analysis of blockchain technology adopted in shipping and logistics that began in August 2017.
HMM, along with Samsung SDS and other members of the shipping and logistics blockchain consortium, have conducted the blockchain technology integrated pilot voyage and internal assessment for the past seven months.
Samsung SDS commented: “The blockchain technology adopted in shipping and logistics industry has prevented alteration and forgery of import/export documents and it also minimised the issuance of paper documents, simplifying the document issuance process.”
HMM began its blockchain integrated pilot voyage from August and successfully completed its first pilot voyage from Korea to China (Busan to Qingdao) with reefer containers, followed by more pilot voyages in India, Middle East and Europe.
HMM, through this blockchain consortium, has acquired transparency in shipping transactions by delivering import/export-related documents to all related parties (shipper-carrier-Customs-bank) at once and also by preventing any alteration or forgery of import/export documents through public-key cryptography. This is expected to reduce a massive amount of paperwork, such as inputting booking information and Bill of Lading, thereby improving work efficiency.
Also, with the integrated Internet of Things (IoT) technology, cargo status (location, temperature, humidity, etc.) will be shared among HMM and the related parties live on-time, which will clarify any legal dispute that may occur during the transportation of the cargo.
HMM plans to specify the plan for adopting blockchain technology in shipping based on the assessment result of the shipping and logistics blockchain consortium. It also plans to request various research organisations and Government bodies for further legal revision and support for adopting the blockchain technology into shipping and logistics.
An HMM official commented: “We are reviewing various ways to improve our service and its quality through adopting IT technologies by adopting the high-end IT technologies such as blockchain and IoT in shipping and logistics, we will become one of the pioneers.”