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September 17 2018

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Page 44 of 103

September 17 2018 | The Journal of Commerce 45 Cover Story Special Report Global Logistics Focus A new service from CargoX shows potential of blockchain to eliminate shipping's paper trail By Eric Johnson SHIPPERS SHOULD SEE a signifi cant reduction in the existing cost of transferring paper bills of lading by using an electronic blockchain ver- sion of the document, as evidenced by the electronic issuance of a bill of lading for a shipment of garments from Shanghai to Koper, Slovenia, in late July. That cost e ciency is often overlooked in the broader argument about the e cacy of blockchain. CargoX, the shipping blockchain solutions provider, said the cost to produce and transfer the bill of lading (B/L) to relevant parties via its public blockchain solution was 85 percent less expensive than the traditional means of doing so through courier services. The B/L also was transferred "in minutes instead of days or weeks," with the chance of loss, theft, or damage to the document reduced to near-zero, the company asserted. Blockchain technology refers to a type of database encrypted in such a way as to be virtually uneditable, and has been put forward as a trans- formational tool in global supply chains. A number of companies have proposed migrating the B/L creation and distribution process to a blockchain as a way to make it more accurate, executable in real-time, and tamper-proof. The cost savings CargoX identi- fi ed in its test shipment were related directly to courier costs, and don't factor in potential e ciency gains from the process. "Our partners will be collect- ing data about e ciency, and with time we will be able to present the fi ndings," the company told The Journal of Commerce. "We can Blocking and tackling

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