APL Shipping Company Tests Blockchain Technology to Reduce Bureaucracy
American president Lines (APL), one of the most important shipping companies in the world, is testing blockchain technology. There are other enterprises involved in the project, including AB InBev, Accenture and Luehne + Nagel. The intention is to reduce the amount of papers involved in the transport process.
APL New Blockchain Project
It is not the first time that we hear that an important enterprise is working with blockchain technology to reduce bureaucratic costs. Maersk for example is one of these enterprises. Now, APL, and other important companies, will test blockchain to reduce the amount of documents and papers needed in the industry.
APL sees in blockchain an important potential that could improve the company’s performance and increase its revenue in the long term.
“As a facilitator of global trade and strong advocate of innovation, APL sees much potential in blockchain technology to accelerate the digital transformation of the container shipping industry, moving us from traditional paper-based transactions to more efficient, more secure and faster processes along the entire supply chain,” said Eddie Ng, Head of Strategic Liner Management at APL.
Each of the enterprises involved in the blockchain testing experiment will give their expertise in different areas. With blockchain technology, these enterprises may reduce the bureaucratic process and increase efficiency while transporting goods across borders.
Accenture was the enterprise responsible for providing the technological and consulting expertise on blockchain technology. Furthermore, it developed the technical architecture required to support a blockchain solution.
Some time ago, Accenture and DHL, released a report on the future potential blockchain and how it can change the logistics industry. One of the developments in which these two companies were working is the possibility to track pharmaceuticals from the point of origin to the consumer. In this way, several problems will be solved.
With blockchain technology, the logistic industry could increase up to $1.8 trillion dollars its revenue. According to the World Economic Forum (WEF), by reducing commerce berries, the global trade could increase 15 percent in the next years. At the same time, blockchain technology spending will reach $2.1 billion dollars in 2018.
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