The Canadian border authority is set to try out the IBM-Maersk TradeLens Blockchain Network as a potential shipping solution. In recognition of this, the border agency pointed out that blockchain technology has a place in its processes.
CBSA Pilots a Blockchain Initiative
The official press release published on Thursday, Oct. 25 confirmed that the trial by the Canada Border Services Agency (CBSA) would be the most recent integration of the shipping solution developed by IBM and Maersk.
The major reason for building TradeLens, which was unveiled in August this year after a 2017 pilot, is to simplify logistics processes that have proved to be very cumbersome and slow prior to this time. The press statement analyzed that CBSA being the first to study the network, it will “determine what role the platform could play in its business processes.” the release also revealed that;
“TradeLens could create a singular, trusted digital supply chain for all shipments entering Canada. The TradeLens pilot gives us an opportunity to not only find process efficiencies and gain analytical insights, but improve data providence, accuracy and targeting capabilities.”
The president of CBSA, John Ossowski, aired his opinion, adding that:
“The end result may be a faster and more reliable national supply chain, which could positively impact Canada’s economic output.”
Blockchain Integrated To Border Systems
The public domain was also privy to the information that CBSA has entered into a partnership agreement with the Montreal Port Authority in order to use TradeLens for the sole aim of shipping and handling.
Following this press statement, CEVA, another client of TradeLens was full of praises for the move, stating that it amounts to a “big step forward toward establishing a market standard for blockchain solutions.”
As it stands, this trial is worthy of emulation by countries around the world that as the tool has proved its effectiveness. The mere fact that this project is solution-driven has paved the way for its adoption. Corroborating this, the United State has recently confirmed plans to use blockchain for a similar purpose in its border system.
Blockchain; the New School Tech
It has been reported that the use of smart contracts on the “new school” technology (blockchain) has made it possible for several trade processes and distribution to become automated, this would imply that the middlemen would be excluded from the picture and adjustment in the cost factor.
The “new school tech” was announced by the National Bank of Canada as the financial giant would be replacing its current email-based procedures with smart contracts. Also, the Canadian aviation sector has shown some interest in blockchain with Air Canada recently announcing its partnership in a blockchain-based travel network developed by the Swiss blockchain startup Winding Tree.