The reason of change
“Ports and logistics networks have lost much of their efficiency since the second half of 2020, as governments began to introduce and strengthen measures to prevent the spread of the coronavirus”, Mr. Xu Lirong, the Chairman of COSCO Shipping Holdings, told Nikkei Asia. The long-lasted situation seriously affects logistics activities all over the world.
As the reality becomes more and more difficult, Mr. Xu once said: “We have done everything possible to stabilize logistics networks by proactively increasing the number of containers to increase our shipping capacity.” One of the solutions COSCO implemented is to digitize their data based on the blockchain platform.
COSCO cooperates with Tesla to digitize data on blockchain platform
“We have established a system to exchange shipping data in real-time, using blockchain technology,” Mr. Xu Lirong said in an interview with Nikkei Asia. COSCO cooperates with Tesla to boost the process of data digitizing. The system was given to Tesla that it was using on a trial basis at a port in Shanghai. The cargo release process is heavy on paper documentation. Digitalization enabled the pilot to easily verify the consignee and shipping agent with the ocean carrier, which helped the customer to pick up its cargo from the terminal faster. Thus, their employees can receive documents and other materials without touching them.
In April 2020, Wu Yu, General Manager of Business Process & System Division of COSCO had some comments on the new plan: “The pilot of COSCO showcased significant efficiency gains not only in the cargo release process, but also for downstream supply chain planning by presenting a single source of truth for documentation for all involved parties,”
Moreover, some critics believed that Tesla’s work with COSCO demonstrates the EV automaker’s determination to improve the global supply chain and be part of the solution, especially when Elon Musk hinted at problems with the global raw materials supply chain last week.