IBM, aka The Blue Giant, and the Danish conglomerate AP Mill-Maersk Group, also known as Maersk, have announced plans to set up a joint venture to leverage global technology in blockchain to provide “more efficient and safer ways” . With more than 80,000 employees worldwide, Maersk has extensive experience in transportation, logistics and energy.
The New York-based venture capital firm headquartered in New York City named Michael J. White, former president of Maersk Line in North America. Once approved by regulatory agencies, the goal will be to provide a co-developed “Global Trade Digitization” platform based on open standards that is designed for the entire global shipping ecosystem.
It will therefore work to address the need to provide greater transparency and simplicity in the flow of goods across borders and trade zones. According to one IBM spokesman, the solution is expected to be “limited” in a matter of months after the joint venture starts operations.
The move, with an ever-increasing cost and size of the world trade ecosystem, has shipped more than 4 trillion U.S. dollars annually. More than 80% of the current daily consumer use of goods by the shipping industry in the ocean transport and transport.
In view of the fact that the maximum cost of trade documents required to process and manage these goods is estimated to be about one-fifth of the actual cost of transporting the goods, a reduction in costs in this area could result in significant cost savings.
In fact, according to the World Economic Forum (WEF), by reducing barriers in the international supply chain, global trade may increase by nearly 15%, boosting economy and creating employment opportunities.
As early as 2013, Bernard Hoekman, Director of International Trade at the World Bank, in conjunction with the World Economic Forum’s report, released a communiqué in cooperation with Bain & Company and the World Bank, Sri Lanka Forum published a communiqué: “Trade barriers with barriers to supply chains that are more significant than import tariffs, and reducing these barriers will lower business costs and create more jobs and economic opportunities for people.”
It is said that the properties of blockchain technology are well suited to large networks of different partners. Blockchain creates a shared, immutable record of all transactions that take place within the network and then allows Licensee to gain access to trusted data in real time.
Since 2016, IBM has worked with customers in the areas of financial services, supply chains, government, retail, digital rights management and healthcare to implement blockchain applications.
Highlighted the blue effort, of which approximately 1,600 employees work in all areas and sectors across the regional chain and distributed ledger technology (DLT)
Last month they and Walmart, the Nasdaq-listed Chinese retailers Jingdong and Tsinghua University announced they will work with China’s Food Security Coalition to take advantage of blockchain to achieve greater safety and tracking in the food supply chain .
Earlier, they conducted a cross-border payment business with a multinational payment company in Toronto at the SWIFT SIBOS annual event in October, when a Silicon Valley company initially used blockchain technology for South Pacific countries. In addition, the London Stock Exchange Group and headquartered in Memphis, The Seam and other exchanges also started the cooperation in this area.
Blockchain and global trade processes
By applying this technology to digitize the global trading process and under the joint venture partners can introduce “new forms of command and consent” into the flow of information, giving multiple trading partners the ability to collaborate and create a single “common view” of a transaction – Does not affect the details, privacy or confidentiality.
In addition, they will also adopt other open source cloud-based technologies, including AI, IoT and analytics provided through IBM services to help businesses digitally move and track their international boundaries.