The Commonwealth Bank of Australia has announced the successful completion of trade employing the use of its new blockchain platform, according to its recent press release.
The Commonwealth Bank was able to utilize the blockchain technology to track a shipment conveying seventeen tons of almonds from Melbourne, Australia to Hamburg, Germany in a combined effort by five international and domestic Australian “supply chain leaders.”
Blockchain: The Future of Global Trade
The bank “demonstrated a new blockchain platform” which involves innovations such as distributed ledger technology (DLT), the internet of things (IoT) and smart contracts to enhance the trade experiment, which helps to track the shipment of goods from the point of packaging to the delivery point in parallel to existing processes.
While commenting on the new blockchain based trade platform, the bank’s Managing Director of Industrials and Logistics in Client Coverage, Chris Scougall, stated that:
“Our blockchain-enabled global trade platform experiment brought to life the idea of a modern global supply chain that is agile, efficient and transparent. We believe that blockchain can help our partners reduce the burden of administration on their businesses and enable them to deliver best-in-class services to their customers.”
The partnership involved organizations like Pacific National for rail haulage, global agriculture player Olam Orchards Australia Pty Ltd, stevedore Patrick Terminals, port landlord Port of Melbourne, and shipping carrier OOCL Limited. Australian IoT provider, LX Group, provided support in relation to hardware and software in order to ship the almonds from Mildura to the international hub of Hamburg.
Commonwealth Bank of Australia’s Managing Director of Global Commodities and Trade, Alex Toone, was quoted saying:
“By bringing together partners from across the end to end supply chain and developing a new platform underpinned by emerging technology, blockchain, and IoT, we were able to prove a concept to modernise global trade.”
By keeping the details of the container, task completion, and shipping documents, the blockchain platform virtualizes three significant areas of international trade which are operations, documentation, and finance.
The blockchain-enabled supply chain allowed partners to track and view the exact location of the shipment before delivery. They were also able to view conditions such as the shipment’s temperature and humidity with four Internet of things (IoT) devices.
The information obtained by tracking the goods ensures a higher level of efficiency and transparency concerning the condition, location and endorsement of the products being moved from one place to another.
Even at the documentation phase, the blockchain platform allows partners to “upload and access” significant information, such as certificates of origin bill, of lading and other related documents required by customs for clearance, which eases these procedures.