The Thai Customs Department recently announced that it would implement TradeLEns, the logistics platform that was developed by IBM. This technology is powered by the blockchain. It is designed to make it easy to process cargo at international trade ports.
IBM developed TradeLens in partnership with Maersk, the giant shipping company. The blockchain system wants to develop a logistics solution for global trade. Its main goal is to digitize the shipping industry, which is mostly reliant on paper.
Part of a Broader Mission
Using blockchain technology is part of a mission known as Thailand 4.0. This mission wants to improve and modernize all aspects of life in Thailand. One of the aims of Thailand 4.0 is to create a value-based economy. This will be an economy based on technology, innovation, and creativity. According to this goal, the government wants to increase research and development funding to make up 4% of the DP. Blockchain technology will play an important role in this area.
Improving the Logistics Industry
TradeLens want to provide solutions based on the blockchain for the logistics sector. It works as a tamper-proof tracking platform that makes it efficient to create workflow systems. Over 80 companies are already using the technology globally. One of the advantages of this technology is that it will cut back on the amount of paper being used in the shipping sector. Currently, it is powered mainly via paper. Besides that, it will enhance transparency as well as increasing the costs saving and fewer delays when processing cargo.
The TradeLens platform enables instant capture and sharing. As soon as a loaded ship leaves the port, the TradeLens platform will enable the shipping data to be shared with participants in the network. Customs officials working in Thailand will receive a notification when the ships leave the original port. When it gets to Thailand, officials will be prepared for it.
When the IBM-Maersk partnership was announced, other companies in the shipping world joined the effort. Other firms that are part of the project include MSC and CMA CGM. Thus far, over half of the cargo sent globally goes through this platform.
This move will allow Thailand to move away from the manual and paper-based system, which is usually quite inefficient. The best part about this technology is that data is immutable and easy to track. It will eliminate other costs than come with shipping such as having to hire experts to verify shipping data.
Supply chains globally will soon see the benefits of using blockchain technology. It is most likely that more nations and companies will sign u to the TradeLens platform. Governments globally are already looking into the benefits that they could get from adopting the technology.
The result will be a more efficient world that will also grow the global economy. This technology could be the key to reducing global poverty levels if more countries adopt it. Even the World Bank is considering the technology seriously.
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