PIL uses IBM's Blockchain to Speed up Cargo delivery process for Mandarin Oranges

PIL uses IBM's Blockchain to speed up delivery process

Pacific International Lines, known worldwide as PIL, has tied with IBM's blockchain division which enables them to make use of an electronic Bill of Lading (e-BL). This has helped them to track down, in real-time, the shipment of mandarin oranges from China.

The use of IBM's Blockchain powered e-BL has resulted in an enormous reduction in the time taken for the process of transferring the title deed from almost five days to under a second. Document processing is one of the main reason why international deliveries get delayed. However, the use of blockchain has accelerated the overall process, taking up just a second in some scenarios and produce instantly the bill of the transfer of lading for any cargo.

This means manufacturers can focus on other important tasks instead of waiting a week or two for the entire process while improving the speed of efficiency of the product.

Hupco Pte Ltd, (Hupco), one of the major importer of Mandarin Oranges in Singapore, used the capabilities of the platform on a trial basis for delivery of 3,000 cartons of these oranges for the upcoming New Lunar Year. The total oranges amount to about 108,000 in total.

The CEO and Chairman of Hupco, Mr Tay Khiam Back, said, "We are delighted with the outcome of the trial.  By using the e-BL, we have seen how the entire shipment process can be simplified and made more transparent with considerable cost savings.

Our customers can expect their orders in a more timely manner, and, importantly, with freshness assured."

Mandarin Oranges are usually associated with prosperity and are immensely seen during the Lunar New Year in Asia. Often associated with prosperity, people exchange oranges with other people as greeting gifts and are seen enjoying them.

Harriet Green, CEO and Chairman of IBM Asia Pacific, said: “A blockchain-based trade network will be a game-changer, and we have a great opportunity here with our partner PIL to revolutionize the documentation processes in a way that benefits the entire industry. Powered by blockchain, the e-BL developed by the IBM Research Singapore will be critical in helping to establish an extensible ecosystem for trade, thus expectedly enhancing trade efficiency and building trusted trade relationships among the industry players.”

Along with instantly receiving the electronic bill of Lading instantly, these were the immediate benefits the technology had to offer to Hupco:

Reduction in the overall operational cost of electricity (charging for refrigerated cargo containers at the port while waiting for collection), storage costs (at the port) and cost savings from enhanced equipment utilization.

Real-time visibility of documents which can either be traceable or non-traceable. That, in turn, results in a significant increase in the overall security of the entire process and can help with fraud prevention, which is common in almost 40% of the entire maritime fraud.

Lisa Teo, Executive Director of PIL, said: “We are pleased with the steady progress of our blockchain collaboration with IBM. To-date, we have received very positive feedback from the industry and authorities, and we are enthused by the possibilities of how our blockchain developments can transform and inject a much-needed boost in efficiency and innovation into the industry.”

There is another trial in the work from Singapore to Brunei, the stakeholders including the Bank of China Limited Singapore Branch (BOC). The flexible ecosystem facilitates the entire transportation process and establishes a secure way of transaction and settlements between the two parties while issuing Letter of Credit.

PC: Pablo. Unsplash

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Anurag Chawake Opinions expressed by techsutram contributors are their own. More details

I am an Engineering Student with a keen interest in Blockchain, Cloud Computing, AI, ML and related startups. I am currently working with Techsutram as a Writer/Intern.

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