According to a report published on China’s official newspaper (People’s Daily) dated March 27, CSICL (China Shipbuilding Industry Company Limited), a Chinese shipping giant has plans of exploring the use of blockchain technology in order to finance its upstream suppliers. CSICL is a subsidiary of CSIC, which is one of the two largest shipping conglomerates in China.
Reports suggest that CSICL has signed a strategic cooperation agreement concerning services related to supply chain with the Shanghai Bank. As per agreement terms, CSICL along with Shanghai Bank will collectively develop an online supply chain finance platform based on the principle of blockchain technology for upstream suppliers of CSIC.
The platform aims to provide financing for supply chains catering to the company’s ten major product sections, namely – marine engineering, storage batteries, shipbuilding, turbochargers, tobacco machinery, diesel engines, large steel structure fabrications, port machinery, gas meters, and automation distribution systems.
According to China’s leading news organization, People’s daily, the agreement is a part of Shanghai Banks intentions of using new technologies in order to improve business processes. According to reports, in October 2018, Shanghai Bank developed and floated its Uplink e-Chain, which is an online financial supply chain service platform for small and medium businesses.
In recent time, blockchain technology has been widely welcomed across the shipping industry across the globe along with various supply chains. In January, Zim (Israel’s biggest cargo shipping company) developed a platform based on blockchain for electronic bills of lading to all clients in shortlisted trades. Also, Infotech Baltika (Russian shipping logistics company) in collaboration with Iconic (Moscow-based blockchain startup) will be developing a blockchain based port operation system called Edge.
Previously in the month of March, the government of Singapore announced that it would be testing its blockchain based maritime trade platform dubbed TradeTrust. According to reports, the testing pilot follows a January MoU which is signed by Infocomm Media Development Authority (Singapore) and Customs and the Singapore Shipping Association.