Global Trade Digitization

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1 IPCSA Annual Conference November 207 Henrik Hvid Jensen, Maersk Line Product Manager Document subject to frequent revisions

2 Border related costs are higher than transport costs for international trade Export Production Cost International Trade Cost - Transport Costs 4,7% ,5 % International Trade Cost - Border related trade barriers Retail/Local distribution margins Source: Anderson and Wincoop E. (2004) Trade costs. National Bureau of Economic Research 2

3 Example: Shipment case study We analyzed the shipment of avocados from Mombasa to Rotterdam We followed the shipment from Mombasa to Rotterdam and tracked the actors, people and information exchanges. The findings illustrated the complexity and costs inherent in today s global supply chain Avocado Shipment Actors 30 People 00 Information exchanges

4 The case for GTD TODAY TOMORROW Consignee Exporter Forwarder Exporter Trucker Rail Forwarder Consignee Terminal Carrier Terminal Carrier Inconsistent information across organizational boundaries and blind spots throughout the supply chain hinder the efficient flow of goods Complex, cumbersome, and costly peer-to-peer messaging Manual, time-consuming, paper-based processes; high air courier expense and delays Risk assessments often lack sufficient information; The administrative cost of handling a container shipment is comparable to the cost of the actual physical transport Instant, secure access to end-to-end supply chain information; single source of the truth Assurance of the authenticity and immutability of digital documents; trusted cross-organizational workflows Supply chain documents remains under the control of the source (No shared document database) Complimentary not supplementary to existing SCM-solutions - Everyone keeps their existing IT-system so process and business rules remains in their internal IT-system As neutral as the Internet Shaped by the ecosystem 4

5 We are bringing (GTD) to market to reduce global trade barriers and increase efficiency across international supply chains GTD is an infrastructure platform for containerized shipping connecting the entire supply chain ecosystem Ocean Carriers Transportation Management. Shippers / Supply Chain Actors Shipping Information Pipeline (SIP) Provides end-to-end supply chain visibility Enables all involved in a global shipping transaction to securely and seamlessly exchange shipment events in real time 2 Paperless Trade Digitizes and automates paperwork filings Enabling end users to securely submit, stamp and approve documents across national and organizational boundaries Ports and Terminals Customs Systems Logistic actors internal systems GTD Platform Port Community Systems; Terminal Operating Systems Supply Chain Visibility Systems Trade Associations Supply Chain / Transportation Management systems Freight Forwarders Authorities

6 How does the Shipping Information Pipeline work? Store Document Get Document Supply Chain Actor Private Doc. store Publish Shipping Information Pipeline Broadcast s repository Get Shipment s List Subscribe to

7 How does the Shipping Information Pipeline work? 9 Store Document Get Document Supply Chain Actor 2 3 URL Private Doc. store 8 URL Identification type URL 4 Publish Shipping Information Pipeline 7 Broadcast s Local repository Relevant parties has already subscribed to relevant events A supply chain event happens Actor stores detailed document in private doc store Doc store returns a link (URL) where the document can be accessed Actor publish event with URL to SIP SIP stores the event SIP broadcast event to all parties that has subscribed to this type of event Subscriber's internal system receives the event When subscriber s internal business rules / process decides, the detailed document is requested from actors private doc store Request is authorized by owner and document is made available 5 Get Shipment s List repository 6 Subscribe to 0

8 With GTD, the entire supply chain ecosystem shares a single trusted view of shipping events and documentation filings Export Import Exporter / Consignor 3PL Service Provider Inland Transportation Port / Terminal Authorities Port / Terminal Authorities 3PL Service Providers Inland Transportation Importer / Consignee Not exhaustive list of s tracked by GTD Shipping Information Pipeline Start container tracking Empty container picked up from depot ETA empty container at stuffing site ATA Empty container at stuffing site Container stuffing completed at inland location VGM submitted Note: representative only; not all documents require Paperless Trade nor is this an exhaustive set of documents that could be processed by Paperless Trade Container sealed ATD Packed container from stuffing site Estimated gate in for packed container at terminal export Gate in full at terminal export ETD packed container from export terminal Packed container loaded Export documentation cleared Container ready to load ATD packed container from export terminal ETA packed container at import terminal Temperature update Estimated discharge time for packed container at import terminal Import documentation cleared Container selected for inspection ATA packed container at import terminal Packed container discharged at import terminal Paperless Trade Blockchain Network Estimated gate out of packed container from terminal import Gate out packed container from terminal import ETA packed container at stripping location ATA packed container at stripping location Seal removed Packed container stripped at inland location Empty container ready for pick-up Empty container picked up from stripping location ATA empty container at depot Container tracking ended Packing List Bill of Lading Export documentation Advance declration Pre-paid invoice Certificate of Origin Shipping instructions ISF Geography specific certificate Dangerous Goods Declaration Cargo specific certificate Customs Clearance Commercial Invoice Import documentation 8

9 IPCSA Annual Conference November 207 Henrik Hvid Jensen, Maersk Line Product Manager Document subject to frequent revisions 9