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Following the termination of its blockchain-based supply chain platform by Danish logistics firm Maersk last year, industry builders have not abandoned blockchain applications in global trade.
Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications, remains bullish on blockchain as a crucial logistics tool in the long term.
According to a report by the South China Morning Post, GSBN currently operates one of the world’s largest platforms that can be described as an alternative to Maersk’s TradeLens tool. The platform is built 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 secured partnerships with major shipping lines such as Cosco, Orient Overseas Container Line, and Hapag-Lloyd. The organization has also established partnerships with terminal operators including Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.
Among its members, only German Hapag-Lloyd and Singaporean PSA International are not based in mainland China or Hong Kong.
Despite major industry firms like Maersk terminating similar projects, GSBN CEO Bertrand Chen is confident that blockchain adoption has yet to fully materialize, predicting it may take another decade. “I think for a lot of people, the clear understanding is this industry has digitized,” Chen said, arguing that there is no chance global trade will continue using “pen and paper” by 2032. According to the executive, blockchain has the potential to help the industry transform in response to supply chain triggers like COVID-19. He stated:
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“Because of COVID-19, because you have to change the process, I think this is one of the regular use cases of blockchain […] Probably that’s better than NFTs of digital art. NFTs of documents for global trade — this will be the real killer use case.”
The executive suggested that China is taking the lead in blockchain logistics because the country has been investing heavily in the industry. He also acknowledged that many local blockchain solutions have so far been highly specific to China.
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“When you throw so much money in one sector because it’s a policy, you’re bound potentially to be able to get lucky,” Chen said. He added that China’s investment in blockchain development would benefit GSBN by generating more potential partners for the firm.
The GSBN CEO also noted that the organization has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day but admits that such a scenario “may be slightly challenging,” Chen noted.
Hong Kong has been increasingly emerging as a major Web3 and cryptocurrency hub over the past few months, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like CPIC launching crypto-related funds in early April.
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