An analysis of current applications in the shipping industry.

Since early 2017 we have seen many projects come to life that aim to bring Cryptocurrency to the mainstream through a multitude of applications to the real world and since late 2017 we have seen this integration begin to reach the shipping industry; an age-old industry that has seen very little improvement since the adoption of the standardized shipping container (TEU) and the integration of email. Most progress and large-scale improvements have been made in operations optimization and time management which has mainly being a result of the sheer size of the industry and the difficulties of implementing something at such a large scale with consensus.

Today, several projects are working on bringing the space forward into the next era of shipping. Blockchain technology is the most logical solution to organize and optimize this large landscape with minimal costs by improving the supply chain and improving on different processes.

While these projects have been categorized based on primary focus, it is not to say that they do not offer other value propositions that may also fall under another category.

Shipping Infrastructure Platforms

Maersk + IBM declared a partnership in January 2018 with aims reduce global trade barriers by creating two primary products. Firstly, a shipping information pipeline between members of the supply chain through a blockchain based open technology stack. They also aim to create paperless trade via smart contracts similar to the way CargoX.io operates, effectively putting the B/L smart contract project into potential competition with the IBM & Maersk Project. With U.S Customs and Border Protection, Netherlands Customs Administration, Cow Chemical, Tetra Park, DuPont and other major industry players having already tested their platform and many others showing interest and intent to do the same, this joint venture proves a real need for such platforms in the industry. https://www.ibm.com/blogs/blockchain/2018/01/digitizing-global-trade-maersk-ibm/

Morpheus Network is an Ethereum based supply chain platform with an operating MVP for shipping smart contract creation with features including automated payment scheduling, contract tracking, and a very easy to use platform. Morpheus’s advisory team includes the former CEO of DHL; Roger Crook, Charlie Shrem and Donna Stoppard from TD Canada Trust, supporting the development of this project and providing key connections in the logistics, supply chain, and blockchain industries. They are also part of the Blockchain transport alliance with integration with the Swift banking network and have an established escrow system attached to the Smart contract network to hold funds until contract validation. Morpheus network is looking to work with other supply chain networks like Shipchain to revolutionize the supply chain industry. https://morpheus.network/

Bitnautic is an ERC 20 token that aims to create what they describe as a decentralized web 3.0 for the cargo industry. The project’s goals include creating a matchmaking system for shipping supply and demand, creating a deposit system for cargo bookings, real time tracking of cargo, and a wholesale ecommerce platform.
The token is meant as a utility token for the large platform they wish to create; being utilized for platform subscription and as the payment method for all services and products the projects aims to provide users.
The project aims to have their public Beta testing period throughout Q3 of 2018 with establishment of partnerships with select carriers. https://bitnautic.io/

Quasa is a Russia based project that is also establishing a platform in the logistics and shipping industry focusing on Russian and CIS business partnerships. Their goal is to reduce tariff costs and provide efficient shipping options and implement them through data collection and use of all shipping routes available to the platform database. They are releasing a prototype version of the platform in Q2 2018 with QUA their utility platform token being launched on ICO at present time. The utility token operates as the currency for services provided on the platform and is meant to offer discount on services for use. Their development and expansion plan revolves around modules; they plan on releasing their “air” module by end of 2018 and plan to start introducing their platform’s services to the “truck” and “cargo” modules by the end of 2018. https://www.quasa.io/

Payment Processing

Prime Shipping Foundation is developing a payment processing system, crypto bank and exchange platform operating on the PRIME token that are based on the cloud and all stored on their blockchain. This project targets maritime transport which boasts an estimated 50,000 merchant ships over 150 nations and accounts for 62% of the world’s freight turnover. They focus on solving the largest issue in the supply chain; payment processing, which conventionally is very complicated to estimate cost, process, and account for due to the sheer number of participants in the chain of transport. PRIME smart contract enabled platform aims to simplify the transfer of payments and to make the entire process cheaper and transparent at the same time. Prime Shipping Foundation also aims to provide addition services based on the payment smart contracts including cargo tracking and additional products such as a Crypto Exchange and Prime Crypto Bank- a banking option for holders of PRIME token. While having a lot of stepping stones between their base product and their complete vision, Prime Shipping Foundation provides a realistic outlook as to the necessary accomplishments for the latter products to be operational.

Cargo Transfer and Ownership

CargoX.io A Slovenian based project with an experienced team both in shipping, logistics, and blockchain integration has created a blockchain based smart B/L system. The B/L contract is an essential part of the shipping industry, effectively transferring the rights of ownership over shipping containers during shipping. They are creating a decentralized solution in a $50 Billion/year industry that reduces the cost/contract by 90% and reducing the process time to a matter of seconds. With a proven operating product, this project is partnered with Milsped Group; a significant player in the shipping industry and MakerDAO; a decentralized stable coin project being developed by DAI to facilitate scalability and payment processing for CargoX. Currently in the scaling stage of their development and growth, CargoX is actively making new connections and gathering supporters worldwide. https://cargox.io/solutions/Smart-BL/

Open Port is a tech company whose product list already includes a track and trace system, an analytics dashboard and an electronic Proof of Delivery (POD) for the supply chain through their OpenTM transport manager. They are now implementing blockchain technology to decentralize the process for indisputable record of freight history. The OpenPort(OPN) project operates primarily in emerging Asian markets with most global consumer goods manufacturers relying on their sales in these regions. Therefore the implementation of an effective electronic POD for trucking in Asian emerging markets would decrease expenditures in transport and expedite the supply chain process through the use of blockchain based smart contracts that increase cash flow through the supply chain. The OPN token will be used to fuel this ecosystem with blockchain integration by making it a necessary utility token in all aspects of the ecosystem operations and a form of payment for miners running the blockchain. The dates for the Pre ICO and ICO have yet to be set by OpenPort. https://openport.com/

Freight Booking

300Cubits (https://300cubits.tech/) is a Hong Kong based project that uses blockchain technology to structure a smart contract freight booking-deposit platform between shippers and customers. The deposit aims to improve current inefficiencies of TEU transport and aims to resolve container booking no-shows: an issue that costs the industry an estimated $23 Billion yearly. Production system is under development and the Alpha version was tested with live shipment in Feb. They are also releasing a container booking system for shipments by using the TEU utility token to place deposits. Production system is expected to go live on 15 June 2018 and with an experienced team in both the shipping and banking industries this project seems to find its rightful necessary place in the shipping revolution. They have finished their Pre-ICO and began ICO funding in September of 2018.

Shipowner( https://shipowner.io/) is an Ethereum based platform that aims to decentralize ship ownership, operation and sale through the creation and use of SHIP token, a utility token that will be used to run the Shipowner platform and has begun a 4 phase ICO March 7th. The team behind ShipOwner claims to have already secured USD $200 Million in commitments in maritime assets and services via the prior successes of founders and aim to be operating 5% of global maritime market transactions by 2025.

Shipment Tracking:

Track and Trace by Shipchain -Since start of development in November 2017 this project has been developing a track and trace system that operates on Shipchain main and side blockchains to create an efficient way for shippers to track shipments and decrease the chances for lost containers. This project operates on the Ethereum blockchain leveraging the smart contract feature to track individual shipment contracts through encrypted geographic waypoints. This tracking system will operate so as to only allow tracking access to parties included in the smart contract supply chain to limit exposure while maintaining transparency on the blockchain. Shipchain plans to integrate the system into all government mandated ELD devices. https://shipchain.io/

The Global Shared Container Platform (GSCP) was founded by Blockshipping. this project aims to release several products to decrease loss and minimize fraud on shipment containers by releasing a container register database where all details of whereabouts, ownership and mortgage information of a shipping container can be accessed and tracked down at any moment. This goes hand in hand with efforts to digitize the CSC metal plates attached to all shipping containers. GSCP plans to make it so that if granted access by owners and operators of the container, information about the container can be accessed via a GSCP QR code that will be printed on the doors of each shipping container. They also plan on creating a service using the sharing economy model in the shipping industry- creating an Airbnb style service for containers under their GSCP project that will allow for a different method of container management. GSCP claims to potentially save the container industry an estimated USD $5.7bn/ year and are currently conducting their ICO for the CCC platform token. https://www.blockshipping.io/

I will be writing an in-depth review article on all projects mentioned above describing their potential and limitations as of now. These project reviews and comparisons will take into account all alternative projects based on value proposition categories.

Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs.