News Release – CargoSmart and Maritime Industry Operators Commit to Transforming the Shipping Industry – July 12, 2019
Leading global shipment management software solutions provider, CargoSmart, has announced the execution of Global Shipping Business Network (GSBN) Services Agreements with maritime industry operators CMA CGM, COSCO Shipping Lines, COSCO Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group.
Under these agreements, each signatory commits to provide resources to support preparatory work required to establish the GSBN, a not-for-profit joint venture to accelerate the digital transformation of the shipping industry. That preparatory work includes obtaining all necessary regulatory, competition and antitrust approvals required for the establishment of the GSBN. CargoSmart will provide software solutions and services to the GSBN once it is formed.
On this occasion, Rajesh Krishnamurthy, Executive Vice President – IT & Transformations, CMA CGM Group, said, “In line with our Customer Centric and Digital First approach, the CMA CGM Group is committed to facilitate increased transparency and to spur innovation with the entire supply chain ecosystem. The GSBN blockchain consortium provides us a concrete opportunity to bring greater value for our customers and the supply chain as a whole.”
And Martin Gnass, Managing Director IT Technology at Hapag-Lloyd added, “We are focused on offering our customers the best choices for their supply chain needs. Once it is established, the GSBN will work, with its JV structure and strong carrier and terminal participation, to increase efficiency in cross-network operation for the benefit of the various stakeholders in our industry.”
Upon its establishment, the GSBN intends to provide a platform for all shipping supply chain participants to work collaboratively to accelerate technology innovation and develop solutions through trusted and secure data exchange platforms. The signatories firmly believe that the GSBN can unlock underlying value and create exciting new opportunities for all shipping supply chain participants in a more open and transparent way. While the current signatories are shipping lines and terminal operators, it is envisaged that other participants in the shipping industry may wish to join the GSBN or otherwise benefit from the innovative solutions it develops.
Value Creation Through the GSBN for the Global Supply Chain
Unique to the industry, the GSBN will be set up as a not-for-profit joint venture entity once the relevant regulatory approvals are obtained, with the goal of transforming the global supply chain with openness and transparency. Its intended data platform will similarly aim to strike a balance between the interests of data providers and data users, and fairly recognize the value that data providers bring to the development of technology solutions. As part of the preparatory work required to set up the GSBN, the signatories plan to establish strong data management and governance frameworks that will apply once the GSBN is formed, including the principle that participants should retain control over their data being shared through the GSBN.
Upon its establishment, it is envisioned that the GSBN will provide shipment visibility and transparency through a trusted data source. In addition to establishing a data governance framework, once it is formed the GSBN will also consider and lead the development of a roadmap of use cases, data access APIs and applications.
“Together with other industry participants, PSA is pleased to work towards the establishment of a not-for-profit entity to promote fair and open exchange of data, consistent with each participant’s regulatory obligations. Having an ethos of open architecture and good data governance among supply chain participants will go a long way towards building an Internet of Logistics. We believe this greater connectedness will benefit the supply chain and facilitate a more efficient and transparent future for global trade,” said Ho Ghim Siew, Head of Group Commercial, Strategy and Cargo Solutions, PSA International.
Eye on the Future
The signatories of the GSBN Services Agreements plan to complete the establishment of the GSBN in early 2020, subject to obtaining all requisite anti-trust, competition and regulatory approvals. The signatories are open to feedback from the shipping community to enable the GSBN to offer solutions based on market need. In the interim, as part of the process of preparing for the formation of the GSBN, CargoSmart will run pilot applications that test the viability of the GSBN and the potential for the GSBN to offer unprecedented value to all supply chain participants. For example, initial preparatory efforts to explore and test the feasibility and value of using blockchain technologies are underway and showing promise.
“CargoSmart is pleased to support the strong industry commitment, represented by the GSBN Services Agreements, to build a solid foundation for the digitization of the shipping industry and the development of innovative solutions based on distributed ledger technology,” said Steve Siu, Chief Executive Officer of CargoSmart.
CargoSmart Limited empowers companies to digitally transform their global supply chains. Leveraging technologies including artificial intelligence, Internet of Things, blockchain, and a deep understanding of ocean shipping, CargoSmart provides innovative solutions for transportation and logistics teams to collaborate, increase visibility, and gain insights to optimize supply chain planning and operations. Founded in 2000 and headquartered in Hong Kong, CargoSmart has helped over 160,000 professionals increase delivery reliability, lower transportation costs, and streamline operations.