Navigating the post-IBM + Maersk Tradelens landscape: How to optimise your supply chain

The global supply chain has faced numerous challenges in recent years, from natural disasters to political turmoil and, most recently, the Covid-19 pandemic. These disruptions have caused delays, shortages, and higher costs, making it harder for businesses to operate effectively. Against this backdrop, the use of blockchain technology has been a game-changer. It has provided a secure, transparent, and efficient way of conducting trade transactions. However, in late 2022 Maersk and IBM made a significant announcement that shook the logistics industry - the discontinuation of TradeLens, a blockchain-enabled global trade platform. This decision left many companies scrambling for alternative solutions to reduce trade friction and promote more efficient and secure global trade.

Amidst the uncertainty, a new player, CargoX, is making waves in this space with their partnership with CEBS Worldwide. CargoX is an open-access blockchain-based logistics platform that is transforming trade. Their innovative solutions have garnered them a reputation as a game-changer in the logistics industry. CEBS Worldwide, on the other hand, is a renowned IT product and services company that helps customers achieve optimised, secure, and scalable solutions. The two companies combine their expertise to bring open and secure trade and shipping data, especially in the MENA.

“We are making it easier for our clients to implement advanced technology in supply chains by partnering together,” said a spokesperson from CargoX. “The partnership aims to fill the gap left by the discontinuation of IBM + Maersk TradeLens by helping clients reduce costs and risks within their supply chain.”

The discontinuation of TradeLens has provided an opportunity for clients to work with innovative companies that offer even better solutions. The CargoX/CEBS partnership is focused on using blockchain technology to optimize the supply chain, reduce costs, and improve efficiency. By utilising the platform, customers can leverage features such as electronic bills of lading and supply chain finance, which can help streamline their operations and reduce paperwork.

The electronic bill of lading is a digital alternative to the traditional paper-based document that provides proof of ownership of goods during shipment. It is an essential component of trade finance as it facilitates the movement of goods and enables financing. With blockchain technology, the electronic bill of lading can be more secure, efficient, and cost-effective.

Additionally, CargoX offers Supply Chain Finance (SCF), a financing option that allows businesses to access capital based on the value of their goods in transit. It involves using financial instruments to optimise the flow of funds between buyers, suppliers, and financiers. This can be especially helpful for small and medium-sized businesses needing access to traditional financing options.

But perhaps the most significant advantage of CargoX is its open-access platform. Unlike TradeLens, which was developed and owned by IBM and Maersk, CargoX is available to anyone, regardless of size or industry. Businesses can easily integrate the platform into their existing systems and workflows.

As the world becomes increasingly interconnected, it’s more important than ever to have secure and reliable logistics solutions. The CargoX/CEBS partnership is particularly significant for the African logistics industry. Many Middle Eastern and African countries face significant logistical challenges, including inadequate transportation infrastructure, border delays, and corruption. By leveraging CargoX’s blockchain-based solutions, MENA businesses can overcome these challenges and increase their competitiveness in the global market.

Deepak Jain is a freelancer content writer.

• KT Network