Maersk & IBM Form Blockchain Venture

Maersk and IBM have announced their intent to establish a joint venture to provide more efficient and secure methods for conducting global trade using blockchain technology.

The aim of the new company will be to offer a jointly developed global trade digitization platform built on open standards and designed for use by the entire global shipping ecosystem.

It will address the need to provide more transparency and simplicity in the movement of goods across borders and trading zones.

According to The World Economic Forum, by reducing barriers within the international supply chain, global trade could increase by nearly 15%, thereby boosting economies and creating jobs.

Maersk and IBM will use blockchain technology to power their new platform, as well as employ other cloud-based open source technologies including artificial intelligence (AI), IoT and analytics, delivered via IBM Services, in order to help companies move and track goods digitally across international borders.

Maersk and IBM believe that manufacturers, shipping lines, freight forwarders, port and terminal operators and customs authorities can all benefit from the new technologies – and ultimately consumers will be more satisfied.

Vincent Clerc, Chief Commercial Officer at Maersk and future Chairman of the Board of the new joint venture, said: “This new company marks a milestone in our strategic efforts to drive the digitization of global trade.

“The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit.

“By joining our knowledge of trade with IBM’s capabilities in blockchain and enterprise technology, we are confident this new company can make a real difference in shaping the future of global trade.”

IBM's blockchain platform is presently enabling hundreds of clients and thousands of developers to build and scale active networks across complex use cases, including cross border payments, supply chains, and digital identification.

"The major advances IBM has made in blockchain have shown that the technology can foster new business models and play an important role in how the world works by building smarter businesses," said Bridget van Kralingen, SVP, IBM Global Industries, Solutions and Blockchain.

"Our joint venture with Maersk means we can now speed adoption of this exciting technology with the millions of organizations who play vital roles in one of the most complex and important networks in the world, the global supply chain.

“We believe blockchain will now emerge in this market as the leading way companies seize new untapped economic opportunities.”

IBM and Maersk began collaborating in June 2016, and since then, multiple parties have piloted the platform including DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, the Customs Administration of the Netherlands, and the US Customs and Border Protection.

The global terminal operators APM Terminals and PSA International will also use the platform to enrich port collaboration and improve terminal planning.

To address the specific needs of the industry, Maersk and IBM are establishing an advisory board of industry experts to help further shape the platform and services, provide guidance and feedback on important industry factors, as well as drive open standards.

Maersk and IBM have named Michael J. White, former president of Maersk Line in North America, as CEO of the new company.

Mr White commented: “Today, a vast amount of resources are wasted due to inefficient and error-prone manual processes.

“The pilots confirmed our expectations that, across the industry, there is considerable demand for efficiency gains and opportunities coming from streamlining and standardizing information flows using digital solutions.

“Our ambition is to apply these learnings to establish a fully open platform whereby all players in the global supply chain can participate and extract significant value.

“We look forward to further expanding our ecosystem of partners as we progress toward a global solution.”