Although shipping has traditionally been resistant to technological advancement,
this is likely to change with the introduction of blockchain technology which enables
peer-to-peer transactions securely recorded in de-centralised multiple locations.
While the use of this technology is yet uncommon in the shipping business,
apparently there are some bunker supply contracts which involve blockchain and
smart contract.
107 Maersk and IBM intend to establish a joint venture to develop an
open trade digitalization platform, deploying blockchain and other cloud-based,
open-source technologies. A shipping consortium consisting of Hyundai Merchant
Marine and others conducted a pilot voyage in September 2017 in which blockchain
was used to secure paperless processes for shipment booking and cargo delivery.
108
Several smart contract prototypes have been launched which involve digitalizing
electronic bills of lading and other trade documents, such as CargoDocs under
ESS-DOCS, and Cargo X.
Positive results achieved in these initiatives demonstrate the potential blockchain
may have in accomplishing the singularity of paperless electronic shipping document.
109 This will doubtless bring new challenge, one being lack of uniform
standards and the need for interoperability between various initiatives. Some
observers point out that head-on competition on choice of technology aimed at
making a particular one the standard would be detrimental for the shipping industry.
110 New security challenges is another concern which may be alleviated by the
use of blockchain but may also lead to new potentially more complicated challenges
as hacking into a maritime transaction may still be possible by the use of some
methods.
111 Accordingly, the approach to uniformity in the regime of carriage of
goods by sea needs to be predicated on updating static legal rules to keep pace with
on-going developments in shipping.
5.2 Multimodal Transport and the Rotterdam Rules
The container became widely used from the 1970s.
112 Due to dry cargoes being
mainly containerised, large sea carriers extended their business to inland-route
transport to earn additional freight.
113 Consequently, the traditional ocean carriers
started to become multimodal operators.
114 They stepped into the air, rail and road
107 Smart contracts are contracts in the form of a computer programme run within blockchain which
automate the implementation of the terms and conditions of a contract between the parties.
108 Lloyd’s List (2017).
109 UNCTAD (2018), pp. 87–89.
110 Joc.com, Blockchain success in shipping hinges on standardisation, 27 March 2018.
111 Marine Electronics and Communications, Blockchain is not the silver bullet for cybersecurity,
9 March 2018.
112 OECD Doc. DSTI/DOT/MTC (2001) 3, (11 January 2001), 4.
113 Bauchet (1998), p. 191; Faria (2008), p. 304.
114 Ibid.
Lex Maritima in a Changing World: Development and Prospect of. . .
773
this is likely to change with the introduction of blockchain technology which enables
peer-to-peer transactions securely recorded in de-centralised multiple locations.
While the use of this technology is yet uncommon in the shipping business,
apparently there are some bunker supply contracts which involve blockchain and
smart contract.
107 Maersk and IBM intend to establish a joint venture to develop an
open trade digitalization platform, deploying blockchain and other cloud-based,
open-source technologies. A shipping consortium consisting of Hyundai Merchant
Marine and others conducted a pilot voyage in September 2017 in which blockchain
was used to secure paperless processes for shipment booking and cargo delivery.
108
Several smart contract prototypes have been launched which involve digitalizing
electronic bills of lading and other trade documents, such as CargoDocs under
ESS-DOCS, and Cargo X.
Positive results achieved in these initiatives demonstrate the potential blockchain
may have in accomplishing the singularity of paperless electronic shipping document.
109 This will doubtless bring new challenge, one being lack of uniform
standards and the need for interoperability between various initiatives. Some
observers point out that head-on competition on choice of technology aimed at
making a particular one the standard would be detrimental for the shipping industry.
110 New security challenges is another concern which may be alleviated by the
use of blockchain but may also lead to new potentially more complicated challenges
as hacking into a maritime transaction may still be possible by the use of some
methods.
111 Accordingly, the approach to uniformity in the regime of carriage of
goods by sea needs to be predicated on updating static legal rules to keep pace with
on-going developments in shipping.
5.2 Multimodal Transport and the Rotterdam Rules
The container became widely used from the 1970s.
112 Due to dry cargoes being
mainly containerised, large sea carriers extended their business to inland-route
transport to earn additional freight.
113 Consequently, the traditional ocean carriers
started to become multimodal operators.
114 They stepped into the air, rail and road
107 Smart contracts are contracts in the form of a computer programme run within blockchain which
automate the implementation of the terms and conditions of a contract between the parties.
108 Lloyd’s List (2017).
109 UNCTAD (2018), pp. 87–89.
110 Joc.com, Blockchain success in shipping hinges on standardisation, 27 March 2018.
111 Marine Electronics and Communications, Blockchain is not the silver bullet for cybersecurity,
9 March 2018.
112 OECD Doc. DSTI/DOT/MTC (2001) 3, (11 January 2001), 4.
113 Bauchet (1998), p. 191; Faria (2008), p. 304.
114 Ibid.
Lex Maritima in a Changing World: Development and Prospect of. . .
773