Tesla Concludes Blockchain Pilot to Expedite China’s Import Process!
In a declaration on Tuesday, blockchain-based logistics provider CargoSmart unveiled Tesla, the SIPG (Shanghai International Port Group) – the sole operator of the port – and Chinese cargo ship operator (COSCO) tested a blockchain app that reduced the cargo release time and made it more comfortable for Tesla’s logistics teams to take possession of goods once they are offloaded.
The pilot, which was led in December, applied blockchain to bestow important shipping data and documentation amongst concerned parties, including Tesla. Access to a shared data source streamlined the complete process. It enabled the California-based carmaker to “accelerate its cargo pick up procedures on a trusted and secure platform,” according to CargoSmart.
Wu Yu, head of COSCO’s logistics division, said in a statement the pilot “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.”
The cargo release process relates to when the shipping operator hands over goods after the journey. To avoid confusion and theft, clients want an original bill of lading or waybill – similar to a receipt – that operators utilize to authenticate identities and release cargo.
Usually reasonably seamless, the cargo release process can grind to halt if an OB/L or waybill is misplaced or corrupted. Without them, operators can’t deliver goods. This generates delays over the supply chain and can lead to hefty fines from port authorities to any ships discovered overstaying their time in dock.
Following the prosperous pilot, CargoSmart stated it would operate to trial the blockchain app in other Asian ports, including in China, Qingdao, and Laem Chabang, Thailand. The company moreover, intends to build a consortium held by shipping operators, who will manage and administer the distributed ledger system.
The declaration doesn’t state much about the type of blockchain utilized in the pilot, nor the kind of goods Tesla imported into China. Tesla has factories in the nation – including one in Shanghai – it applies to create batteries and gather its cars.
According to the Los Angeles Times, Chinese officials have been swift to offer supplies the company required to recover quickly from the coronavirus outbreak earlier this year. Tesla has concentrated its energies in China and could be about to deliver a new long-range auto specifically for the Chinese market as soon as this week.
It’s unclear whether Tesla has any intentions to proceed to utilize blockchain technology to import its goods into China or any other country.