Improving the process of container shipping using blockchain

Abstract

Container shipping is one of the most important aspects of the global supply chain. Currently, approximately 60% of all seaborne trade is moved through containers. However, despite the growth in trade, there has been little investment in process improvements which has led to the growth of supply chain issues in the containership industry. Three critical issues were identified that have marred the overall efficiency of the supply chain. The first is customs clearance that creates barriers to trade and inefficiencies. Second is aging technology in the container shipping industry which is creating a lot of wastage in the system. Third is inefficient contracting practices. We create a value stream map as well as a re-engineered process using blockchain. With the use of blockchain, we see that despite certain limitations, the process can be made more efficient as blockchain has the potential to build trust amongst various participants in the supply chain.