Global Shipping Business Network (GSBN) has incorporated in Hong Kong after securing the requisite regulatory approvals across multiple jurisdictions and has officially started its operations to help accelerate the Digital Transformation of the Shipping industry. GSBN has been established on a not-for-profit basis to enable stakeholders involved in global trade to increase delivery reliability, streamline operations, and embrace digital transformation. Its shareholders are comprised of major global Carriers and Terminal Operators: COSCO SHIPPING LINES, COSCO SHIPPING PORTS, Hapag-Lloyd, Hutchison Ports, OOCL, SPG Qingdao Port, PSA International, and Shanghai International Port Group. COVID-19 and digital transformation GSBN’s vision is to enable the digital transformation of the shipping industry, through Secure Data Exchange Platform Over the last year, the pandemic has demonstrated the world’s interdependence and the importance of global trade. Widespread production shutdowns in various countries had unpredictable effects on major businesses’ supply chains across all sectors. Lockdowns and the following explosive growth in the e-commerce business have pushed the industry as a whole to its limits. GSBN’s vision is to enable and accelerate the digital transformation of the shipping industry, through the setup of a Secure Data Exchange Platform, which will enable the shipping industry to improve its resilience by: Facilitating better digital connection and collaboration between stakeholders Improving the visibility to enhance sustainability and reliability of operations Creating a data utility platform to unlock the value of digital transformation for all Digital platform Martin Gnass, Managing Director IT of Hapag-Lloyd, said, “The foundation of GSBN symbolises an important milestone towards establishing an industry-wide, secure, digital collaboration platform that aims to benefit all parties in the global supply chain.” “GSBN will accelerate the sharing of verified logistics and cargo data, streamline business operations across the whole supply chain, and create value to each stakeholder.” A Data Exchange Platform built with ease of use, access control, and a sustainable economic model in mind. Exchange data Leveraging Blockchain technology, GSBN will provide a platform, which enables its users to exchange first-party, real-time, and trusted logistics data. The platform will provide a better user experience, enabling industry players to interact with data and redefine legacy processes. For example, many industry stakeholders still rely on manual processes or traditional EDIs instead of APIs for some of their most critical tasks. Data governance Data submitted to GSBN’s platform is fully encrypted with private keys Additionally, the platform has strong data governance, to ensure that only authorised parties are granted access rights to view and use the data. Data submitted to GSBN’s platform are fully encrypted with private keys, and the data access rights are managed at the data field level. Enhanced data security measures will also ensure commercially sensitive information is protected against unauthorised or inappropriate disclosure or use. not-for-profit GSBN has also been set up on a not-for-profit basis so that it can economically motivate each member to participate and contribute high-quality data. In the future, GSBN will establish a framework with all stakeholders to share the benefit derived from data products built on top of the platform using their data. Facilitate transactions Ho Ghim Siew, Head of Group Commercial, Strategy and Cargo Solutions, PSA International, said, “The ability to collaborate in a trusted and secure manner is key for us to fully realise the opportunities from our increasingly digital and interdependent world.” “The GSBN platform will allow stakeholders and industry players to share timely information to facilitate downstream transactions and activities, with the assurance that their data is protected by strong data governance structures.” “PSA International is excited to be part of GSBN’s incorporation milestone. We look forward to co-creating innovative solutions with industry players through the GSBN platform, and generating new value for cargo owners and supply chain stakeholders.” Product roadmap During the preparatory phase of GSBN, the founding members have conducted various proofs of concept in China and Southeast Asia to demonstrate the value of products built on top of the platform. GSBN intends to pursue the deployment of "Cargo Release" as its first product As a result, GSBN intends to pursue the deployment of "Cargo Release" as its first product. During an initial pilot, this product was very well received by a wide range of customers, within the context of the pandemic, as it allowed a “no-touch” process for a traditionally very manual and time-consuming cargo release process. Network to network connection Another successful proof of concept relates to using shipping data to empower trade finance. As global trade does not rely only on logistics but also on trade financing, GSBN intends to establish a network to a network connection with trade finance (banks and other fintech), to provide a better user experience for the ultimate customer. Only by collaborating with a broad spectrum of stakeholders in global trade, can the value of digitalisation be truly unlocked. GSBN invites interested parties to partner with it on creating new data products for the whole industry. Blockchain-based products “We are excited to share with our partners our experience with innovative blockchain-based products. Such digital products have helped our customers cut down their costs as they incorporate them into their existing processes.” “As an example, the Cargo Release pilot has enabled hundreds of our customers to eliminate their current manual steps and remove the need for any physical exchanges of paper documents. This not only reduced the overall time from 2-3 days to 1-2 hours but also provided health benefits about COVID-19.” “With the establishment of GSBN, we are keen to work with all the stakeholders to further develop digital products, fully leverage the blockchain technology and offer more digital services to improve customer experience,” said Kenny Ye, Deputy Managing Director of COSCO SHIPPING Lines and COO of OOCL, said. simplify trade for all There has been no reliable way to bring digital transformation in a secure, neutral, trusted, and equitable way for years Many industries have been disrupted by the emergence of new technologies, which enable the exploration of new business models, tapping into data, and leveraging software to enhance the customer experience. The shipping industry has been looking at digital transformation for years, but there has been no reliable way to bring everyone together in a secure, neutral, trusted, and equitable way. Ease of trade Bertrand Chen, Chief Executive Officer, Global Shipping Business Network, said, "I am grateful for the trust our Shareholders have put in me to head up this new and exciting business venture. We will build a diverse, multi-cultural, and innovative team to collaborate with stakeholders across regions and industries, from logistics service providers to financial institutions.” “We aim to increase the speed of logistics and the ease of conducting trade globally, ultimately benefitting all parties involved. We are here to simplify trade for all." Membership GSBN will open its membership in the coming months. There will be a multiple-tier membership scheme linked to different data volume commitments, participation in the early release of new products, and other associated privileges. Technology Solution Partner – IQAX Limited To support GSBN’s vision, IQAX will be the technology provider, taking over from its business affiliate CargoSmart, to manage the GSBN platform from end to end.
Global shipment management software solutions provider, CargoSmart, announced the execution of Global Shipping Business Network (GSBN) Services Agreements with maritime industry operators CMA CGM, COSCO Shipping Lines, COSCO SHIPPING Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group. Under these agreements, each signatory commits to provide resources to support preparatory work required to establish the GSBN, a not-for-profit joint venture to accelerate the digital transformation of the shipping industry. Supply chain ecosystem That preparatory work includes obtaining all necessary regulatory, competition and antitrust approvals required for the establishment of the GSBN. CargoSmart will provide software solutions and services to the GSBN once it is formed. The GSBN blockchain consortium provides us a concrete opportunity to bring greater value for our customers" On this occasion, Rajesh Krishnamurthy, Executive Vice President – IT & Transformations, CMA CGM Group, said, “In line with our Customer Centric and Digital First approach, the CMA CGM Group is committed to facilitate increased transparency and to spur innovation with the entire supply chain ecosystem. The GSBN blockchain consortium provides us a concrete opportunity to bring greater value for our customers and the supply chain as a whole.” Accelerating technology innovation And Martin Gnass, Managing Director IT Technology at Hapag-Lloyd added, “We are focused on offering our customers the best choices for their supply chain needs. Once it is established, the GSBN will work, with its JV structure and strong carrier and terminal participation, to increase efficiency in cross-network operation for the benefit of the various stakeholders in our industry.” Upon its establishment, the GSBN intends to provide a platform for all shipping supply chain participants to work collaboratively to accelerate technology innovation and develop solutions through trusted and secure data exchange platforms. The signatories firmly believe that the GSBN can unlock underlying value and create exciting new opportunities for all shipping supply chain participants in a more open and transparent way. Intended data platform The signatories plan to establish strong data management and governance frameworks While the current signatories are shipping lines and terminal operators, it is envisaged that other participants in the shipping industry may wish to join the GSBN or otherwise benefit from the innovative solutions it develops. Unique to the industry, the GSBN will be set up as a not-for-profit joint venture entity once the relevant regulatory approvals are obtained, with the goal of transforming the global supply chain with openness and transparency. Its intended data platform will similarly aim to strike a balance between the interests of data providers and data users, and fairly recognise the value that data providers bring to the development of technology solutions. As part of the preparatory work required to set up the GSBN, the signatories plan to establish strong data management and governance frameworks that will apply once the GSBN is formed, including the principle that participants should retain control over their data being shared through the GSBN. Providing shipment visibility Upon its establishment, it is envisioned that the GSBN will provide shipment visibility and transparency through a trusted data source. In addition to establishing a data governance framework, once it is formed the GSBN will also consider and lead the development of a roadmap of use cases, data access APIs and applications. It is envisioned that the GSBN will provide shipment visibility through a trusted data source “Together with other industry participants, PSA is pleased to work towards the establishment of a not-for-profit entity to promote fair and open exchange of data, consistent with each participant’s regulatory obligations. Having an ethos of open architecture and good data governance among supply chain participants will go a long way towards building an Internet of Logistics. We believe this greater connectedness will benefit the supply chain and facilitate a more efficient and transparent future for global trade,” said Ho Ghim Siew, Head of Group Commercial, Strategy and Cargo Solutions, PSA International. Strong industry commitment The signatories of the GSBN Services Agreements plan to complete the establishment of the GSBN in early 2020, subject to obtaining all requisite anti-trust, competition and regulatory approvals. The signatories are open to feedback from the shipping community to enable the GSBN to offer solutions based on market need. In the interim, as part of the process of preparing for the formation of the GSBN, CargoSmart will run pilot applications that test the viability of the GSBN and the potential for the GSBN to offer unprecedented value to all supply chain participants. For example, initial preparatory efforts to explore and test the feasibility and value of using blockchain technologies are underway and showing promise. “CargoSmart is pleased to support the strong industry commitment, represented by the GSBN Services Agreements, to build a solid foundation for the digitisation of the shipping industry and the development of innovative solutions based on distributed ledger technology,” said Steve Siu, Chief Executive Officer of CargoSmart.