IPCSA Blockchain
Bill of Lading Initiative

The technology partner and platform provider for the project, Microsoft, has provided the ability to use Enterprise Ethereum with Microsoft Workbench. This solution attracts with its high level of integration with existing corporate Microsoft products such as Azure and Active Directory. This makes the process of joining new participants and the integration of information systems easier.During the visit of Israeli Prime Minister Benjamin Netanyahu to Ukraine on August 19, 2019, one of the important topics of negotiations with the President of Ukraine was the development of IT technologies and support for start-ups. In particular, the Israeli Prime Minister noted the cooperation of Ukrainian and Israeli IT companies: "Israeli companies work here, and we cooperate with tens of thousands, about 50 thousand Ukrainian computer engineers, mathematicians, scientists, those who are involved in the field of modern technologies."

One of these projects is a cooperation between the Israel Ports Company - the operator of the port community system in the ports of Israel and the Ukrainian LLC "PPL 33-35" - the operator of the information system of the port community in the ports of Ukraine, on the development of an electronic bill of lading based on blockchain technology.

The project was presented in 2018 in Rotterdam at the annual meeting of the IPCSA (International Port Community Systems Association) and is developing actively under its auspices.

To date, the port community systems from Spain (Portic, Barcelona), Germany (DBH, Bremen) and Italy (Autorità di Sistema del Mare Adriatico Orientale, Trieste), as well as Israeli bank Leumi, Spanish bank Sabadell, a number of customs brokers, shippers and consignees, as well as the largest Israel's container sea carrier – ZIM have joined the project.

The technology partner and platform provider for the project, Microsoft, has provided the ability to use Enterprise Ethereum with Microsoft Workbench. This solution attracts with its high level of integration with existing corporate Microsoft products such as Azure and Active Directory. This makes the process of joining new participants and the integration of information systems easier.

The key feature of the project is the construction of nodes based on the existing systems of the port community.
This makes it possible to neutralise the complexity and technological features of the blockchain project and to provide end user with a convenient and familiar interface for information interaction. In addition, it complements the network with additional operational information related to the handling of ships and cargo in ports, which improves the quality of service provided to end user.
Blockchain as a distributed ledger technology has serious potential for solving the problem of lack of trust between participants in the trade (and transport) chains at the technological level.

At its core, a blockchain is a cryptographic protocol that allows individual parties to have a common trust in a transaction since the ledger cannot be easily tampered with (that is, once the data is recorded, cannot be changed). This credibility is created by a combination of factors, including the cryptography used in the blockchain, its consensus/validation mechanism, and its distributed nature.

In the case of a public blockchain, such an arbiter is the aggregate of all nodes that have decided to participate in the consensus. In the case of a private blockchain, an arbiter is a consortium of nodes that are trusted (given permission) to create consensus on the network.
    Blockchain technologies in logistics can be used to
    Accompanying financial and insurance documents;
    Shipping and transportation documents;
    Container logistics documents and bills of lading verification;
    Permits and declarations of national regulatory authorities.

    Prospects for the application of Blockchain technology in logistics

    The number of practical examples of blockchain technology applications in logistics is increasing every day. New projects are appearing, and existing projects are expanding the number of services.

    A few months ago, the DELIVER blockchain-based platform announced the delivery of the first container fully framed by the platform.

    Another consortium is also developing a blockchain-based logistics project - Maersk-IBM - TradeLens has recently announced its intention to monetise access to the project as a separate service.

    At the same time, the active adoption of blockchain technology by the industry revealed new problems. The issues of blockchain security as a technological solution are becoming more and more relevant – that's why this topic has become one of the leading at the World Economic Forum (WEF) this year.

    According to WEF forecasts, up to 10% of world GDP by 2025 will be stored in distributed ledgers, in this regard, the impact of technology on the global economy and issues of security and the level of trust in this technology becomes extremely important.

    In this context, the Inter-American Development Bank (IDB) Integration and Trade Sector and the Center for the Fourth Industrial Revolution (C4IR) of the World Economic Forum (WEF) launched a unique project in 2018: "Global Trade Single Window on Blockchain Technology" as part of the TradeTech Forum Initiative to evaluate the potential use of Blockchain technology in the trading ecosystem.

    International organisations such as the United Nations Centre for Trade Facilitation and Electronic Transactions (UN / CEFACT) have also joined in the standardisation of blockchain technology.
      It can be stated that blockchain technology has passed its period of heyday of youth when it was perceived as a fashion trend, and attempts were made to build everything on the blockchain, regardless of the return of such projects. Leading IT corporations have entered the blockchain-based solutions market with their proven and trusted platforms. International standards in this area are being developed.

      Thus, technology becomes what it should be - a tool that, when applied correctly, can increase the efficiency of existing processes and create opportunities for the emergence of new ones. A key advantage of this tool is the ability to implement interoperability between existing and new paperless systems without the need to reconcile the level of trust between them, which is extremely important in international trade and logistics.

      Many experts point out the significant impact of technologies such as blockchain, IoT (Internet of Things), and platforms on the development of logistics in the near future. The readiness of the participants in the supply chain for these technologies is already yielding concrete results and providing competitive advantages.

        Join the e-Bill of lading pilot project

        By clicking on the button, you consent to the processing of personal data and agree with privacy policy