IBM and Maersk Form A Joint Ventrue For Blockchain To Improve Globel Trade
IBM and Maersk have announced a new joint venture to develop a digitized global trade platform built around blockchain tech. The two firms said they will improve efficiency and transparency in cross-border trade by digitally transforming the industry.
Milestone for trading
The new company was announced in a press release today. It has been described as a “milestone” in the digitization of worldwide commerce by Maersk CEO Vincent Clerc. IBM and Maersk will jointly use the business to commercialise their existing blockchain and cloud technologies, scaling them to more members of the logistics industry.
“This new company marks a milestone in our strategic efforts to drive the digitization of global trade. The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit,” said Clerc. “By joining our knowledge of trade with IBM’s capabilities in blockchain and enterprise technology, we are confident this new company can make a real difference in shaping the future of global trade.”
Besides blockchain capabilities, IBM will also provide several other emerging technologies. Artificial intelligence (AI), Internet of Things (IoT) and data analytics capabilities will be incorporated into the next-generation platform. The result will create a cohesive global shipping system available to merchants, ports, customs authorities and manufacturers.
BM and Maersk have been collaborating on blockchain technologies since June 2016. Initial trials of the joint platform have proved successful, with users including Tetra Pak, Port Houston and U.S. Customs and Border Protection.
Smart contracts
The new business will be led by Michael J. White as CEO. White was formerly president of Maersk Line in North America. Initially, two solutions will be available, including an end-to-end shipping information pipeline and a platform for Paperless Trade. In the latter instance, blockchain-based smart contracts will replace physical signatures, saving time and lowering cost.
The operation will be subject to regulatory clearance before it’s allowed to start trading. IBM and Maersk anticipate the venture will begin to offer its first solutions within six months. The companies will also create an advisory board of industry experts to assist in the expansion of the platform.