A newly announced Port of Rotterdam blockchain project aims to eliminate fraud from the container management operations. Dubbed as ‘Secure Container Release’, the blockchain application replaces the PIN-based verification solution currently employed by the port authorities.
This week, various parties in Rotterdam will be launching a new pilot project, in which containers are handled and released without a PIN code: a widely used verification method in this transport segment. Read more: https://t.co/cKnKkxBn7H #digitisation #innovation #blockchain pic.twitter.com/vFbr1Mz6yg
— Port of Rotterdam (@PortOfRotterdam) July 9, 2020
The new Port of Rotterdam blockchain application significantly lowers the chances of fraud. The pilot project brings together some of the biggest names in the shipping industry, including MSC, Ocean Network Express, Hutchison Ports, and more. Interestingly, the shipping industry has seen many blockchain-based solutions implemented in its operations in recent times.
Port of Rotterdam blockchain project to begin on a pilot basis
Safety of cargo and fraud-prevention are two primary concerns of port authorities across the globe. The latest Port of Rotterdam blockchain project will ensure smooth cargo handling and containers are released to drivers as per a fully-automated process.
The pilot project will employ blockchain’s distributed ledger technology to manage the container release and unloading operations. The fool-proof tracing characteristics of blockchain will help the application register container pickup automatically. Presently, drivers are given a personal ID number for each container pickup. The PIN is shared across many intermediaries, thereby increasing the risk of error.
The Port of Rotterdam blockchain application issues a crypto token for each container authorization, and the same is stored on the chain. The DLT-based solution shares the transaction token throughout the system. All the intermediaries, including freight forwarder, port authority, and shipping firm, can trust the fool-proof token for all the transactions.
Blockchain brings transparency to shipping container movements
Emile Hoogsteden of the Port of Rotterdam says that the pilot project will span three months, and the performance of the application will be measured according to different parameters. Various parties would observe the improved efficiency and container management on their end.
The Port of Rotterdam is a prominent European port handling approximately 14.5 million cargo units annually. Thus, container management is vital to the smooth movement of goods. Eliminating frauds and errors helps minimize costs and prevent untoward incidents.
The Port of Rotterdam blockchain project will make it impossible to duplicate entries and restrict the fraudulent movement of goods across international borders. Every actor in the shipping supply chain becomes accountable in the pilot project.