TradeLens (blockchain platform)

2022: Closure of blockchain platform

On November 29, 2022, the companies IBM Maersk announced the closure of a joint blockchain platform TradeLens for cargo transportation. Despite a rather successful start (at least the developers themselves considered it such) in 2018, in the future the project faced various difficulties.

The TradeLens system was based on a bold vision to digitalize the global supply chain and was to become an open and neutral industry platform. Unfortunately, despite the fact that we have successfully developed a viable concept, it has not been possible to achieve cooperation at the industry level. As a result, the TradeLens project could not turn into an independent business with the expected financial performance, "said Rotem Hershko, head of business platforms at Maersk.

IBM and Maersk shut down failed blockchain platform

The TradeLens initiative faced stiff competition from the Hong Kong Global Shipping Business Network (GSBN) consortium, created by large shipping lines and terminal operators. It was not possible to bring the platform to the level of commercial viability, despite the use of advanced blockchain technology.

In accordance with the decision, the TradeLens project will be completely closed by the end of the first quarter of 2023. During this process, all parties involved will provide customer service without compromising their business. Maersk emphasizes that the experience gained as part of the deployment of TradeLens will be used to further implement the digitalization program in other areas. In the future, new solutions are expected to contribute to the development of global trade, increase the efficiency of freight transportation and reduce costs.

We are deeply grateful for the tireless efforts of our dedicated partners and many technical specialists who together worked hard to digitalize the industry using the TradeLens platform, "said Rotem Gershko.[1][2]

2018

TradeLens announcement. 94 partners joined the project

On August 9, 2018, IBM and Maersk announced the name of a joint blockchain platform for cargo transportation. It was named TradeLens, and the number of companies that joined the initiative reached 94.

Among those who began using TradeLens are more than 20 ports and terminals around the world, customs authorities in Singapore, the Netherlands, Saudi Arabia and Australia. By August 2018, approximately one-fifth of freight traffic worldwide is from shipping companies. More than 80% of consumer goods are delivered every day to distribution and sale places using maritime shipping.

IBM and Maersk blockchain platform accelerates shipping by 40%

According to a joint press release from IBM and Maersk, TradeLens allows carriers and cargo owners not only to exchange information about transactions in real time, but also to forward financial documents to each other. It is noted that the blockchain platform is able to speed up cargo transportation by up to 40%.

By early August, the TradeLens solution continues to be in pilot testing, and the commercial launch of the product is scheduled for late 2018.

Over 12 months of testing of the platform, more than 154 million operations were carried out through it. Among the advantages of the system compared to traditional electronic document management, developers are able to share information in real time with all interested participants in cargo transportation, as well as a more secure process for transferring this information.

According to Marie Wieck, head of IBM Blockchain, blockchain reduces the processing of paper documents by 10 times, making it faster and easier to issue consignment notes for cargo, issue sanitary certificates, receive customs permits, invoices and other documents. Before the introduction of blockchain, the cargo container spent more time in ports than it sailed from Kenya to Holland, she gave an example.^[3]

Creating a blockchain platform through joint efforts between IBM and Maersk

On January 16, 2018, the Maersk and IBM company announced the creation of a joint venture (JV), which will develop the world's first blockchain platform for organizing cargo transportation. The technology, which was not named at the time of the announcement, will allow the use of digital supply chains and track the movement of cargo around the world in real time.

Maersk and IBM have developed a comprehensive solution that allows all parties involved in international trade to track the location of cargo, and the authorities to remotely allow its further movement.

Maersk and IBM create the world's first blockchain platform for cargo transportation

The new platform will save the shipping industry billions dollars a year by replacing an existing paper system that leaves goods waiting weeks to be shipped, the companies said.

According to the Computerworld portal, blockchain technology will provide a single virtual point for managing the movement of goods and storing all information about their transportation for all interested parties.

In addition, security will be improved through the use of dual encryption and invariability. Blockchain technology uses smart contracts, the workflow of which is carried out independently, depending on the transported goods and permits that are required for their transportation.

In addition to paper legal documentation, most of the information in the international freight industry was transferred using an electronic document management system - a 60-year-old technology, says Michael White, former president of the North American division of Maersk, who headed the Maersk and IBM JV. - But as soon as we move to a new API-based platform, all parties in the supply chain will have more up-to-date and more visual information.

According to him, it is important to eliminate or minimize delays and reduce the waiting time for information or documents to improve the efficiency of cargo transportation.^[4]

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