EMERGING ISSUES APPLICATIONS OF BLOCKCHAIN IN THE SHIPPING INDUSTRY

The purpose of this paper is to perform a critical review on the application and implementations of previously unknown technology blockchain in the shipping industry. Shipping industry also referred as maritime transportation in this report is extremely crucial for the success of the world trade. The report draws up the significance of the same from a global perspective, only to find several inefficiencies in the whole supply chain. Whether communication, transportation, documentation, verification or authentication, various aspects showcase radical problems which give rise to unnecessary costs and damages. Ports lose their reputation and companies lose businesses due to delays. After in-depth criticism of these issues and their origins, the report outlines the need of an upgrade and introduces a new emerging technology that focuses on creating a decentralized peer-to-peer network called Blockchain. The functions, definitions and details of the technology are discussed in detail with relevance to the shipping industry's need and possible benefits. Smart contract is a feature of blockchain that enables the platforms built on blockchain, eliminate the need of third-party authentication. In order to better understand the complexities these technologies, the report reviews and answers the following question. Furthermore, the report investigates few examples such as Maersk and IBM Joint Initiative, Cargo X and BDTS Platform, Blockshipping and GSCP Platform and Morpheus Network that have entered the market with their blockchain solutions to enhance the digitalization of distributed ledgers to generate and store various forms of databases. These examples also link to the current issues in the maritime industry and are directly impacting the supply chain by reducing inefficiencies. Each example, works on creating transparency, increase the workflow communication, provide security with the help of impermeable blocks tightly linked in the blockchain. The report discusses the current advancement seen in the port of Rotterdam as they implement use of blockchain solutions around their port's network of stakeholders such as carrier, customs, port authorities, freight hubs and consolidation centers. There are over 28 stakeholders and over 200 exchanges of data between them. The solution links these exchanges with data stored in the blocks and allows all participants to view but not change anything which increase security and trust in the system. Real time updates bring end to confusion and human mistakes such as load or unloading someone else's containers. Verification becomes easier and overall process is much smoother. The concluding remarks, highlight the need and urgency for all the seaports to adapt to new technologies like blockchain to stay competitive in the industry and summarizes the findings on the impacts of blockchain in the maritime transport.