Shipping Industry

Google and AI set to disrupt shipping industry.

• Heuristics on the High Seas

Bill of Lading

Traditional paper-based bills of lading are prone to fraud, delays, and inefficiencies. A blockchain solution can digitize this crucial shipping document, making it more secure and efficient.

Conventions and Standards

International standards for bills of lading include:

• The Hague Rules: An international convention that sets out the rights and responsibilities of carriers and shippers in the shipping industry.
• The Hague-Visby Rules: An updated version of the Hague Rules that includes additional provisions for cargo liability and insurance.
• The Rotterdam Rules: A modernized set of rules that aim to harmonize international shipping laws and provide clearer guidelines for bills of lading.

Tokenization

Potential benefits of using blockchain technology for bills of lading include:

• Immutability and Transparency: Blockchain technology ensures that once a bill of lading is recorded, it cannot be altered without consensus, providing a tamper-proof record of ownership and cargo details.
• Smart Contracts: Implementing smart contracts can automate the transfer of ownership and payment processes, reducing the need for intermediaries and speeding up transactions.
• Real-time Tracking: A blockchain-based system can provide real-time updates on the status and location of shipments, improving supply chain visibility.

Headwinds for using blockchain technology for bills of lading include:

• Adoption Challenges: The shipping industry is traditionally slow to adopt new technologies, and implementing blockchain solutions may require significant changes to existing processes and systems.
• Interoperability: Ensuring that different blockchain platforms can communicate and share data effectively is a key challenge for implementing blockchain solutions in the shipping industry.
• Regulatory Compliance: The legal and regulatory framework for blockchain-based bills of lading is still evolving, and companies must ensure that their systems comply with relevant laws and regulations.
• Security Concerns: While blockchain technology offers enhanced security features, it is not immune to cyber threats, and companies must take steps to protect their systems and data from potential attacks.
• Cost and Complexity: Implementing blockchain solutions can be costly and complex, requiring significant investment in technology, infrastructure, and training.
• Privacy and Data Protection: Blockchain technology raises concerns about data privacy and protection, as it involves storing sensitive information on a distributed ledger that can be accessed by multiple parties.

Articles:

• Maersk

Protocols

Based on the search results, there are several existing EVM (Ethereum Virtual Machine) smart contracts and SVM (Solana Virtual Machine) programs related to shipping and bills of lading that could be useful references:

CargoX Platform EVM:

• Website: CargoX Electronic Bill of Lading Software
• Contract:
  • Ethereum
  • Polygon
• Description: This platform offers a blockchain-based solution for creating, transferring, processing, and managing digital bills of lading.
• Key Features:
  • Absolute transparency through irreversible timestamps
  • Seamless integration with ERP systems
  • Real-time tracking and automation

Supply Chain Traceability on Solana:

• Key Features:
  • Real-time tracking
  • Immutable records
  • High scalability and low transaction costs

These references provide a solid foundation for developing a blockchain-based solution for shipping and bills of lading. They cover various aspects such as legal compliance, real-time tracking, transparency, and automation, making them valuable resources for building a robust and efficient system.

Source Code

Repository: BillOfLading

• Description: This repository contains a smart contract for a bill of lading, which is a legal document issued by a carrier to a shipper detailing the type, quantity, and destination of the goods being carried. It also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.
• Key Features:
  • Legal document of title
  • Receipt for shipped goods
  • Contract between carrier and shipper

Containers

Containers hold cargo in standardised specifications that streamline shipping operations based on the intermodal nature.

Sizes that fit on ships, rail, and trucks.

The International Maritime Organization (IMO) published a set of shipping container standards in the 1970s. Standard shipping containers are 8' wide by 8'6" high, while high-cube units measure 9'6" high; about 90% of the world's containers are 20 feet or 40 feet long

https://www.iso.org/iso-in-figures.html

These standards were created by the International Organization for Standardization, the independent, non-governmental body responsible for establishing standards in information technology, graphics, photography, mechanical engineering, transport, non-metallic materials, health, medicine, and laboratory equipment.

Four years ago, they released a set of standards designed to include considerations for ships over 18000 TEU, a direct successor of the original framework. During the late mid-century era, though, the common container was 20'L x 8'W x 8'6"H, which is known as the “20-foot equivalent unit” or TEU, the standardized measurement unit of global trade today.

https://www.iso.org/ics/55.180.10/x/

How were such standards enforced? Initially, they were held up by incentive: Only ships that were built to carry standard sizes were eligible for federal subsidies. Later, the ISO standardized container corner fittings, too, which made it possible to standardize the cranes and other equipment required for moving containers.