Blockchain Pilot Finished by Tesla to Speed Import Process
Tesla, a U.S. electric car manufacturer, tested a blockchain to make the process of importing goods into China a lot easier. The company is working with Shanghai Port Group for this project.
According to an announcement on Tuesday, blockchain-based logistics provider CargoSmart unveiled Tesla. The Shanghai International Port (SIPG) – the only operator of the port -, and Chinese cargo ship operator COSCO trialed a blockchain app. They designed the app to shorten the cargo release time supposedly. Making it simpler for Tesla’s logistics team to take ownership of goods once offloaded.
In addition to that, the pilot, which they conducted last December, used blockchain to share related shipping data. Additionally, it was used for documentation between concerned parties, including Tesla. With that, access to a shared data source streamlined the whole process. Also, it allowed the California-based carmaker to quicken its cargo pick up procedures on a trusted and secure platform.
The head of COSCO’s logistics division, Wu Yu, stated that the blockchain pilot showcased significant efficiency gains not just in the cargo release process but also for downstream supply chain planning. And they did this by presenting a single source of truth for documentation for the entire involved parties.
The Cargo Release
Moreover, the cargo release refers to when the shipping operator passes goods at the end of the journey. Clients must have an original bill of lading or waybill – similar to a receipt – that operators use to ensure identities and releases cargo. Aside from that, they use this method to prevent confusion and theft.
Often reasonably seamless, without the blockchain, the cargo release process can grind to a halt if they lost an OB/L or waybill. Without it, operators will not hand over the goods. As a result, this causes delays across the supply chain. Which can lead to hefty fines from port authorities to any ships found overstaying their time in dock.
After the successful pilot, CargoSmart explained that it would work to test the blockchain app in other Asian ports like in Qingdao, China, and Laem Chabang, Thailand. The firm further plans to make a consortium, owned by shipping operators, who will operate and administer the distributed ledger system.
In the announcement, it doesn’t say much information about the type of blockchain used in the pilot. They also failed to mention the sort of goods Tesla imported into China. Tesla has some factories in the country, including one in Shanghai – used to build batteries and assemble its cars.
Based on the Los Angeles Times, Chinese officials became quick when it comes to providing supplies the firm needed to recover fast from the coronavirus outbreak earlier this year.
Tesla has discreetly poured its attention and energy in China and could be about to release a new long-range auto. And it will be specifically for the Chinese market as early as this week.
As of now, it is still unclear if Tesla has any plans to pursue the use of blockchain technology to import its goods to China or other countries.
