DistributedLedgerApplicationsinShipping

ProfNikosNomikosCassBusinessSchooln.nomikos@city.ac.uk

2017AthensTriennialMeeting

BuildingaBlockchain

• Keycharacteristics:Consensus;Provenance;Permissionedaccess;Security.

©NikosNomikos AthensTriennialMeeting 2

FourKeyConceptsofBlockchain forBusiness

JWiley&Sons(2017)

©NikosNomikos AthensTriennialMeeting 3

TradeFinanceissubjecttoInformationandTransactionalFrictions

37

820

35

Borderrelatedcostsarehigherthantransportcostsforinternationaltrade

ExportProductionCostInternationalTradeCost- TransportCostsInternationalTradeCost- BorderrelatedtradebarriersRetail/Localdistributionmargins

Sources:1)MaerskStrategyGroup(May19,2016)basedonWorldBankdataforWorldTradeCosts2)AndersonandWincoop E.(2004)Tradecosts.NationalBureauofEconomicResearch3)WorldEconomicForum:EnablingTradeValuingGrowthOpportunities2013

TheWorldEconomicForumestimatesthatreducingtradebarrierswillsignificantlyenabletrade

4,7%

14,5%

©NikosNomikos AthensTriennialMeeting 4

PaperTrailofaContainer

©NikosNomikos AthensTriennialMeeting 5

TheCaseforGlobalTradeDigitization

Source:UN/CEFACT- TradeandCustomsuseofBlockchain

Source:https://transporteca.co.uk/shipping-process/

TRANSFORMATION

©NikosNomikos AthensTriennialMeeting 6

Applications• Blockchain hasthepotentialtoimproveworkflowandreal-time

visibility.Thereareanumberofongoingshipping-related

applicationsandprojects:

– Maersk&IBM:managementofcontainershippapertrail

– Maersk:marineinsurancecontracts

– Mercuria:shippedandsoldacargoofcrudeoilusing

blockchain technologytofacilitativepaperworkprocessing

– DNVGL:managementsystemsandcertification

– PSA:supplychainandportmanagement.

©NikosNomikos AthensTriennialMeeting 7

www.cass.city.ac.uk

AthensTriennialMeetingProfNikosNomikos

n.nomikos@city.ac.uk