CargoX has successfully completed the first real shipment using the start-up’s blockchain-backed “smart” bill of lading and will now make the solution commercially available, the company said in a statement.
According to the company, the CargoX Smart B/L is the “first fully digital, paperless and secure original bill of lading solution on Earth.”
Arguably the most important document in shipping, a bill of lading confers proof of ownership of freight as it passes through the various stages in the supply chain, from the exporter to the transportation provider and the transportation provider to the importer.
The digital bill of lading was successfully tested on a single TEU containing a shipment of clothing from Shanghai to Koper, Slovenia.
Instead of using a traditional paper bill of lading, which has to be sent via express courier services, the bill of lading for this was issued and transferred electronically via the CargoX platform, saving the importer time and money.
According to CargoX, the smart bill of lading cost just $15, about 15 percent of the estimated average price for the transfer of a paper version and was sent in minutes instead of days or, in some cases, weeks.
“The whole process was completely official, compliant and hassle-free, which has been unanimously confirmed by all the partakers in Asia and Europe,” the company said in a statement.
Miloš Košir, logistics manager of Metro d.d., the importer, said the successful testing of the digital bill of lading represents an opportunity to “significantly” lower its transportation costs.
“We import hundreds of TEU from the Far East, and we are always trying hard to optimize our supply chain,” said Košir. “If it raises the safety and reliability of the document transfer, that is an added value for us as well.”
Added Zongyong Lin, CEO of the Hangzhou Doko Garments Co. Ltd., the manufacturer that exported the shipment, “We were glad to comply with the new process, as it was really easy and swift to implement, and the possibility to oversee where the B/L currently is and always have the archive accessible are advantages that we really think could bring a great benefit to us. We are looking into the opportunity and the effect it would have for our company as a whole.”
With the successful trial completed, CargoX CEO Stefan Kukman said the company is now making the digital bill of lading available on the open market.
“Our initial idea was to solve one problem at a time and not to solve all the problems the shipping industry is facing at once,” said Kukman. “Looking at the current situation we made a proper decision and sticking to our game plan is paying off.
“By successfully completing the official test shipment, we are concluding our development and testing phase of our CargoX Smart B/L solution, which will now be available to all logistics and shipping companies who want to reduce their bill of lading issuing and processing costs by up to 85 percent, as well as save weeks waiting for the document, and who also want to have complete security and document ownership transfer capabilities.”