IBM, Maersk to discontinue Blockchain-powered shipping platform TradeLens
The Danish transport and logistics giant AP Møller-Mærsk and IT major IBM are to discontinue their blockchain-powered shipping platform TradeLens, and the platform will go offline by the end of the first quarter of 2023.
“TradeLens was founded on the bold vision to leapfrog global supply chain digitization as an open and neutral industry platform. Unfortunately, while we have developed a viable platform, the need for full global industry collaboration has not been achieved,” said Rotem Hershko, head of business platforms at AP Møller-Mærsk.
Hershko added that TradeLens has not reached the level of commercial viability necessary to continue operations and meet financial expectations as an independent business.
The solution has been jointly developed by Maersk and IBM as a blockchain-enabled shipping solution designed to promote more efficient and secure global trade.
The platform was launched in August 2018, just six months after the blockchain collaboration between IBM and GTD Solution, a division of Maersk, was announced in January 2018.
The companies said all parties involved will ensure that customers are taken care of without interruption to their business during the shutdown process.
Meanwhile, Maersk said it will continue efforts to digitize its supply chain and increase industrial innovation through other solutions to reduce trade friction and promote more global trade. It will continue to offer its renowned and innovative digital products that will continue the supply chain – DigitalLCL, MyCustoms and Maersk Flow.
The TradeLens platform has helped users reduce administrative costs, increase efficiency and contribute to the global trend of openness and transparency in logistics. TradeLens is claimed to reduce the transit time of a shipment by 40 percent, representing thousands of dollars in cost savings.
The platform brought transparency to end-to-end container shipping related data by providing associated parties with a single point of contact. The data is controlled and managed at all times by the data owner while remaining easily accessible to authorized parties on the blockchain.
TradeLen’s ecosystem includes global shippers, shipping lines, third-party logistics providers, freight forwarders, customs authorities and border agencies. It provides visibility across the entire supply chain, integrating data from multiple points.
The platform has the data for more than half of the world’s ocean container cargo on the blockchain network after five of the top six shipping lines, including Maersk itself, have been added to the network.
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