A sweeping government-backed blockchain pilot application to record and track shipping logistics and documents related to import/exports has proven successful in South Korea.
Samsung SDS, the IT subsidiary and technology provider of Samsung (Korea’s largest conglomerate), has successfully concluded a 7-month pilot of the application of blockchain technology to actual logistics locations in Korea’s shipping industry.
As reported by CCN in May, Samsung SDS commenced the pilot alongside the launch of a blockchain consortium comprising of Korea’s shipping logistics companies, state-run research centers, government authorities like Korea’s Customs Service and the Ministry and Oceans and Fisheries as well as shipping operators. The goal? To implement a blockchain application to power all logistics processes for “all exports and imports by the end of the year.”
The 7-month pilot proved successful. As Samsung SDS now reveals, documents related to imports/exports and logistics paperwork related to shippers, shipping companies, customs officers, and banks were stored on blocks and accessible on a real-time immutable ledger to simplify the overall document issuance process.
The pilot commenced soon after Samsung SDS launched ‘Nexledger’, its enterprise-ready B2B blockchain platform in April. An early trial saw the entire logistic process of a Korea-China shipment between the participating shipping company, port operators and cargo owners delivered using blockchain technology.
Beyond paperwork, the blockchain also facilitated fresh food marine transportation wherein data related to position, temperature and humidity of the food product was relayed to the ledger through IoT (internet of things) devices. The benefits of such real-time transparency allows for accurate estimation of marine insurance premiums during breakages or any other issues during the shipping process.
Kim Hyung-tae, vice president of logistics at Samsung SDS stated:
Through this pilot project, we have confirmed that the block chain technology can raise the level of shipping logistics information network to a new level.