In 2018, the term “blockshipping” was thrown around a lot in the global container shipping industry with news, saying it will pave the way for a new era. If this is new to you, let us explain exactly what is blockshipping.
What is Blockshipping?
Basically, blockshipping is a Global Shared Container Platform (GSCP) that serves as a joint platform for all players in the industry, including carriers, transport companies, ports, terminals, and more. You can think of it as a container shipping registry which lists all of the world’s 27.7 million metal freight containers with times and locations.
Using blockchain technology, cloud services and the power of the Internet, the GSCP enables carriers and stakeholders to better utilize these containers through efficient sharing and real-time tracking. The Danish company believes that a blockchain-based register will provide a proof-of-ownership and undisputable title for containers, as well as improve key processes.
What is Blockshipping trying to solve?
The use of the GSCP will reduce the number of empty container trips, which is costing carriers billions of dollars and causing millions of tons of CO2 emission. Blockshipping hopes to resolve both issues by utilizing the so-called grey box and street-turn method, which involves the efficient matching of empty export and import containers. This, in return, prompts to enhance the supply chains.
According to the company, better utilization of container assets will result in USD 5.7Bn costs savings for global container carriers while at the same time reducing their overall CO2 emission by 4.6M tons, on an annual basis.
Blockshipping is aiming to achieve 60% global market coverage over the next four years.
Why does it run on blockchain?
According to the CEO and Founder of Blockshipping, Peter Ludvigsen, the blockchain technology allows global fleet carriers to “use a system where the trust is built into the system.”
Prior to GSCP, most shipping companies and container owners were apprehensive about the security and cost of using a centralized management system. Ludvigsen believes trust is the lacking ingredient in earlier attempts to facilitate container sharing on a larger scale. He says GSCP, a neutral third-party platform that protects all data and transactions, helps resolve the issue.
Blockshipping is issuing two distinct tokens for use on the platform – one is the internal utility Container Platform Token (CPT) and the other is the external dividend Container Crypto Coin (CCC). The idea behind issuing two separate GSCP token comes from the founder’s market observations and extensive experience. Ludvigsen says utility tokens, when they become popular on the secondary market, have a tendency to invalidate their viability for their original purposes, which is what happened to Bitcoin. Check KINESIS for more details.
The CPT shall be used only within the platform for the purposes of clearing and settling transactions effected by container owners and shipping companies. On the other hand, the external CCC token will be listed on exchanges for public trading. By implementing this unique system, fluctuations in the market value of CCC will leave the value of the CPT unaffected. For the benefit of CCC token holders, the CPT will support the CCC’s value via the Revenue Share Pool.
Blockshipping is the very first ICO to utilize the new ICO 2.0 Framework adopted by Denmark.
Meanwhile, a similar blockchain based platform is creating a new monetary system with a gold-based cryptocurrency, called the Kinesis Monetary System. Read the full story here: kinesis.money for more information about https://kinesis.money/en/guides/supply-chain-management-crypto-era/.