Blockchain is about to revolutionise shipping and boost trade by $US1 trillion
Globalisation has brought the most advanced trading networks the world has seen, with the biggest, fastest vessels, robot-operated ports and vast computer databases tracking cargoes. But it all still relies on millions and millions of paper documents.
That last throwback to 19th century trade is about to fall. AP Moeller-Maersk A/S and other container shipping lines have teamed up with technology companies to upgrade the world's most complex logistics network.
The prize is a revolution in world trade on a scale not seen since the move to standard containers in the 1960s - a change that ushered in the age of globalisation. But the undertaking is as big as the potential upheaval it will cause. To make it work, dozens of shipping lines and thousands of related businesses around the world - including manufacturers, banks, insurers, brokers and port authorities - will have to work out a protocol that can integrate all the new systems onto one vast platform.
Should they succeed, documentation that takes days will eventually be done in minutes, much of it without the need for human input. The cost of moving goods across continents could drop dramatically, adding fresh impetus to relocate manufacturing or source materials and goods from overseas.
"This would be the biggest innovation in the industry since the containerisation," said Rahul Kapoor, an analyst at Bloomberg Intelligence in Singapore. "It basically brings more transparency and eff....