Blockchain technology integration into shipping and logistics, Samsung SDS case study
By Yookyeong Lim & Jihyeon Gina Kim
On 7th September 2017, Chief executive officer of Samsung Data Systems (hereafter Samsung SDS), Yoo-sung Chung held ‘Cello Tech Fair 2017’ at Pan-gyo Campus, South Korea, and delivered a progression presentation of a pilot project on the blockchain technology integration into the shipping logistics.
The presentation delivered the outcomes of the pilot project, conducted by a ‘Shipping and Logistics Blockchain Consortium’, comprising of 15 public and private entities and institutions such as Korean Custom, Korean Ministry of Ocean and Fisheries, Korea Institute of Maritime and Fisheries Technology (KIMFT), Busan Port Authority (BPA), Hyundai Merchant Marine Co., Ltd., Namsung Shipping Co., Ltd., Samsung SDS, so on so forth.
This consortium attempted to apply the blockchain technology to two merchant trades: from the Busan port to port of Qingdao and to the port of Dalian by 1) Hyundai Merchant Marine and 2) Namsung Shipping.
In the light of the application, it was proved that the high-level encryption could prevent the possibilities of forgeries and counterfeits of importing and exporting documents. Overall documents processing speed was also increased thanks to the real-time transmission of cargo location information as well as relevant documents such as the bill of ladings to the stakeholders.
Further to, Samsung SDS envisaged additional projects encompassing to the extents of capital and insurances. Besides, the routes coverage will be extended to a longer distance, such as to Southeast Asia, the Middle East, and Europe.
Samsung SDS also announced their plan on integrating the IoT into overall logistics. That is, the IoT technology will be utilized in controlling the whole segments of air cargoes in a trade that are the vibration and temperature sensitive as well as warehouses locations; and ordering of the release. In so far, Vietnam has applied the IoT technology to the perishable cargoes in controlling the temperatures and humidity of the refrigerators and freezers also the real-time locations as well as physical damage and thefts.
The collated data will be analyzed fast and accurately by the Big data analysis technology for generating meaningful data. Eventually, the information will be provided to customers. Hyeong-tae Kim, vice president of Samsung SDS, said “Technologies like Blockchain and the IoT will be a game changer of logistics business’ roots. We Samsung SDS will adapt this IT trend the fastest and strive to provide the customers sensationally better services.”
Yookyeong Lim (ZDNet Korea) [email protected]
Translated by: Jihyeon Gina Kim (International Transport Workers’ Federation) [email protected]
The copyright of original article belongs to ZDNet Korea. Translation permission was granted by the author of ZDNet Korea. Resource origin: http://www.zdnet.co.kr/news/news_view.asp?artice_id=20170907105810