After Danish logistics company Maersk terminated its blockchain-based supply chain platform last year, industry builders have not given up on the use of blockchain in global trade.
Hong Kong-based Global Shipping Business Network (GSBN), a non-profit consortium focused on blockchain trade applications, has long been bullish on blockchain as an important logistics tool. According to the South China Morning Post, GSBN currently operates one of the world's largest platforms and can be said to be an alternative to Maersk's TradeLens tool. The platform is based on a permissioned blockchain with strong data governance, allowing only authorized parties to contribute and use shipping-related data.
Since launching its blockchain-based shipping platform in 2021, GSBN has already connected with major shipping partners such as Cosco, Orient Overseas Container Line and Hapag-Lloyd. The organization has also entered into partnerships with terminal operators such as Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group and COSCO Shipping Ports. Among the members, only Hapag-Lloyd of Germany and PSA International of Singapore are not located in mainland China or Hong Kong.
Although major industry companies such as Maersk have terminated similar projects, GSBN CEO Bertrand Chen believes that blockchain is not yet popular and its adoption may still be a decade away. “I think for a lot of people, it’s clear that the industry has gone digital,” said Chen, who thinks it’s impossible for global trade to continue to use “pen and paper” by 2032. According to the executive, blockchain has the potential to help transform the industry in response to supply triggers such as COVID-19. He said:
“Because of COVID-19, because you have to change the process, I think that’s one of the regular use cases for blockchain probably better than NFTs of digital art. NFTs of global trade documents – that’s going to be real A killer use case."
The executive said China is leading the way in blockchain logistics as the country has been pumping money into the industry. He also acknowledged that, so far, many local blockchain solutions have been very China-specific. "When you invest so much money in an industry because of a policy, you're bound to be lucky," Chen said, adding that China's investment in blockchain development would bring more potential partners to GSBN, thereby Benefit GSBN.
The GSBN CEO also said the organization has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to one day join Maersk, but admits the situation "might be a bit challenging," Chen noted. Over the past few months, Hong Kong has increasingly emerged as a major Web3 and cryptocurrency hub, with the local government moving to adopt clear industry regulations. Despite China’s blanket ban on cryptocurrencies, some Chinese government-linked companies are reportedly showing growing interest in investing in cryptocurrencies, with state-owned companies such as CPIC launching crypto-related funds in early April.
