Oracle Teams with CargoSmart on Ocean Cargo Blockchain Initiative

When supply chain managers convene in San Francisco for Oracle OpenWorld next month much of the talk will be about new ocean carrier block chain initiatives.

Oracle has recently collaborated with CargoSmart in what it is calling a “significant milestone” in forming the Global Shipping Business Network (GSBN) blockchain consortium.

As reported in SCMR, Nine leading ocean carriers and terminal operators signed a service agreement with CargoSmart earlier this year to commit to provide resources to establish a not-for-profit joint-venture to accelerate the digital transformation of the shipping industry.

The ocean carrier signatories include:

• CMA CGM
• COSCO SHIPPING Lines
• COSCO Shipping Ports
• Hapag Lloyd
• OOCL
• Hutchison Ports
• PSA International
• Port of Qingdao
• Shanghai International Port.

The signatories of the GSBN Services Agreements plan to complete the establishment of the GSBN in early 2020, subject to obtaining all requisite anti-trust, competition, and regulatory approvals.

Meanwhile, CargoSmart will continue to run pilot applications to prove the viability of the GSBN and demonstrate the high potential value creation through the GSBN.

And Oracle continues to support CargoSmart with a capable Blockchain Platform for decentralized consortium governance, on-chain mechanisms for business confidentiality, and performance at scale required for tens of millions of shipments that underpin world trade.

“Together CargoSmart and Oracle have been working on this effort for almost a year,” said Frank Xiong, Oracle's Group VP for Blockchain Product Development. “From the outset, the foundation of this approach has been a decentralized, multi-party, fully managed enterprise-grade blockchain network that enables trust, while maintaining confidentiality of the commercial relationships as required by shipping industry regulations.”

He added that by speeding up the deployment of the initial pilot applications based on the platform's rapid development and integration capabilities, CargoSmart has moved through quick innovation cycles to respond to “members' priorities.”

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