Page 0039

6.1

Current problems in

the shipping industry

For the first time in fifteen years, global GDP growth

outpaced container shipping growth in 2016.35

One way to reverse this trend is to address the numerous

inefficiencies plaguing the shipping industry. Many

inefficiencies stem from the shipping industry's outdated

treatment of data.36 While some ports share real-time

shipping information in connected ecosystems, data silos

throughout the shipping chain prevent easy upstream

and downstream data transfers.37 Instead, piecemeal

information is passed along the chain of participants as

the shipping process takes place. This disjointed flow of

information makes it difficult for anyone at a given stage

of the chain to obtain complete, real-time information

regarding other stages.38 Further, because global trade

participants use idiosyncratic databases developed

separately over decades to conduct their business, there

has been a general inability to agree on the use of any

centralised aggregator of information in the shipping

industry.39 These inefficiencies are believed to cost the

global shipping industry approximately 10% of global

shipping costs each year.40

See diagram on page 40.

6.2

Blockchain helps to alleviate

shipping industry issues

A blockchain-based solution gives all players in the

end-to-end shipping chain access to the same information

in real-time. This enables participants to communicate

with each other based on a single shared view of

applicable data. Information can be shared in a trusted

and consistent way that is auditable and without the need

for any centralised aggregator. The shipping blockchain

offers a single source of truth without a single point

of failure.

See diagram on page 41.

GDPR and the Blockchain I 37

Index

  1. Page 0001
  2. Page 0002
  3. Page 0003
  4. Page 0004
  5. Page 0005
  6. Page 0006
  7. Page 0007
  8. Page 0008
  9. Page 0009
  10. Page 0010
  11. Page 0011
  12. Page 0012
  13. Page 0013
  14. Page 0014
  15. Page 0015
  16. Page 0016
  17. Page 0017
  18. Page 0018
  19. Page 0019
  20. Page 0020
  21. Page 0021
  22. Page 0022
  23. Page 0023
  24. Page 0024
  25. Page 0025
  26. Page 0026
  27. Page 0027
  28. Page 0028
  29. Page 0029
  30. Page 0030
  31. Page 0031
  32. Page 0032
  33. Page 0033
  34. Page 0034
  35. Page 0035
  36. Page 0036
  37. Page 0037
  38. Page 0038
  39. Page 0039
  40. Page 0040
  41. Page 0041
  42. Page 0042
  43. Page 0043
  44. Page 0044
  45. Page 0045
  46. Page 0046
  47. Page 0047
  48. Page 0048
  49. Page 0049
  50. Page 0050
  51. Page 0051
  52. Page 0052