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Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the...

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Distributed Ledger Applications in Shipping Prof Nikos Nomikos Cass Business School [email protected] 2017 Athens Triennial Meeting
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Page 1: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

DistributedLedgerApplicationsinShipping

[email protected]

2017AthensTriennialMeeting

Page 2: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

BuildingaBlockchain

• Keycharacteristics:Consensus;Provenance;Permissionedaccess;Security.

©NikosNomikos AthensTriennialMeeting 2

Page 3: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

FourKeyConceptsofBlockchain forBusiness

JWiley&Sons(2017)

©NikosNomikos AthensTriennialMeeting 3

Page 4: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

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

Page 5: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

PaperTrailofaContainer

©NikosNomikos AthensTriennialMeeting 5

Page 6: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

TheCaseforGlobalTradeDigitization

Source:UN/CEFACT- TradeandCustomsuseofBlockchain

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

TRANSFORMATION

©NikosNomikos AthensTriennialMeeting 6

Page 7: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

Applications• Blockchain hasthepotentialtoimproveworkflowandreal-time

visibility.Thereareanumberofongoingshipping-related

applicationsandprojects:

– Maersk&IBM:managementofcontainershippapertrail

– Maersk:marineinsurancecontracts

– Mercuria:shippedandsoldacargoofcrudeoilusing

blockchain technologytofacilitativepaperworkprocessing

– DNVGL:managementsystemsandcertification

– PSA:supplychainandportmanagement.

©NikosNomikos AthensTriennialMeeting 7

Page 8: Distributed Ledger Applications in Shipping · 2017-11-22 · Applications •Blockchainhas the potential to improve workflow and real-time visibility. There are a number of ongoing

www.cass.city.ac.uk

AthensTriennialMeetingProfNikosNomikos

[email protected]


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