Hong Kong takes the lead in blockchain logistics after Maersk TradeLen’s demise
After Danish logistics firm Maersk ended its blockchain-based supply chain platform last year, industrial builders have not given up on blockchain applications in global trade.
Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications, is positive on blockchain as an important long-term logistics tool.
According to a report by the South China Morning Post, GSBN currently operates one of the world’s largest platforms that can be described as an alternative to Maersk’s TradeLens tool. The platform is based on a permissioned blockchain with strong data governance, so that only authorized parties can contribute and consume shipping-related data.
Since launching its blockchain-based shipping platform in 2021, GSBN has tapped major shipping partners such as Cosco, Orient Overseas Container Line and Hapag-Lloyd. The organization has also achieved partnerships with terminal operators such as Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group and Cosco Shipping Ports.
Among the members, only Germany’s Hapag-Lloyd and Singapore’s PSA International are not based in mainland China or Hong Kong.
Despite the fact that large industrial firms such as Maersk have ended similar projects, GSBN CEO Bertrand Chen is confident that blockchain has not yet taken hold in the industry, but that it could take another decade.
“I think for many people, the clear understanding is that this industry has digitized,” Chen said, arguing that there is no chance that global commerce will continue to use “pen and paper” by 2032. According to management, blockchain has potential to help the industry transform in response to supply chain triggers such as COVID-19. He stated:
“Because of COVID-19, because you have to change the process, I think this is one of the most common use cases of blockchain […] Probably better than NFTs of digital art. NFTs of documents for global trade – this will be the real killer use case.”
The executive suggested that China took the lead in blockchain logistics because the country has poured money into the industry. He also acknowledged that many local blockchain solutions have so far been very specific to China.
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“When you throw that much money into a sector because it’s a policy, you’re bound to potentially get lucky,” Chen said. He added that China’s investment in blockchain development would definitely benefit GSBN by generating more potential partners for the firm.
The GSBN chief also noted that the organization has global ambitions and is working to attract more European shipping companies. The nonprofit even hopes to board Maersk one day, but admits such a scenario “could be a bit challenging,” Chen noted.
Hong Kong has increasingly emerged as a major web3 and cryptocurrency hub in recent months, with local authorities taking steps to enact clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly become interested in crypto investments, with state-owned firms such as CPIC launching crypto-related funds in early April.
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