CORE WP23 Global Trade Digitization (GTD) Platform. Prof. Yao-Hua Tan (TU Delft) Nicolas Buhmann (MAERSK) Norbert Kouwenhoven (IBM)
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1 CORE WP23 Global Trade Digitization (GTD) Platform Prof. Yao-Hua Tan (TU Delft) Nicolas Buhmann (MAERSK) Norbert Kouwenhoven (IBM)
2 How it all started Maersk and IBM 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 1 Actors 30 People 100 Information exchanges The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 2
3 From Bi-lateral Data Exchange to Global Digitization Platform TODAY Authority Consignee TOMORROW Open global trade digitization platform Exporter Authority Authority Forwarder Exporter Trucker Rail Forwarder Consignee Authority Authority Authority Authority 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 Risk assessments often lack sufficient information; clearance processes subject to fraud 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 Better risk assessments and fewer unnecessary interventions Far lower administrative expenses and elimination of costs to move physical paper across international borders The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 3
4 Reducing global trade barriers and increasing efficiency across international supply chains Inland Transportation Bringing to market a trade platform for containerized shipping connecting the entire supply chain ecosystem Ocean s Shippers / Supply Chain Actors 1 2 Shipping information pipeline Will provide end-to-end supply chain visibility that enables all actors involved in a global shipping transaction to securely and seamlessly exchange shipment events in real time Paperless trade Will digitize and automate paperwork filings for the import and export of goods by enabling end users to securely submit, stamp and approve documents across national and organizational boundaries Ports and s Systems Logistic actors internal systems Freight Forwarders The platform will be built on an open technology stack and is underpinned by blockchain technology Authorities Supply Chain Visibility Systems Trade Associations Supply Chain / Transportation Management Systems Port Community Systems; Operating Systems The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 4
5 Large Volume of Containers and Data Tested in various CORE trade lanes; e.g. Europe-US Large companies participate (Dow Chemicals, Dupont, Tesla, Tetrapak) Large number of container (< 100 thousand!) Large number of container event data (< 5 million!) Active piloting of Dutch and US Dutch built Real-Time Information (CRIS) system to connect to data pipelines such as GTD, will be integrated in new version of Dutch customs declarations system AGS GTD has been scaled up to Sharing large volumes of data Global coverage GTD is currently connected to Container systems (e.g. MAERSK) Various container terminals (e.g. Rotterdam, Houston, Singapore, Lima) 5 Various Ports/Port Community Systems (e.g. Portbase of Port of Rotterdam)
6 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 Container sealed ATD Packed container from stuffing site 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 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 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 Entire supply chain ecosystem will share a single trusted view of shipping events and can participate in paperless trade Export Import Exporter / Consignor Service Providers Inland Transportation Port / Authorities Port / Authorities Service Providers Inland Transportation Importer / Consignee Not exhaustive list of Events tracked by platform Shipping Information Pipeline Note: representative only; not all documents require Paperless Trade nor is this an exhaustive set of documents that could be processed by Paperless Trade Paperless Trade Blockchain Network Packing List Export documentation Pre-paid invoice Shipping instructions Geography specific certificate Cargo specific certificate Commercial Invoice Bill of Lading Advance declaration Certificate of Origin ISF Dangerous Goods Declaration Clearance Import documentation Future Offerings The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 6
7 GTD Shipping Information Pipeline Dashboard 7
8 GTD Paperless Trade Dashboard 8
9 Ecosystem Participant GTD Deployment Model Concept IBM Cloud Blockchain Node 1 Blockchain Node 2 Blockchain Node 3 Platform API Platform API Platform API Platform API Shipping Information Pipeline Services Paperless Trade Services Node 1 Doc Store Paperless Trade Services Node 2 Doc Store Paperless Trade Services... Node 3 Doc Store SIP Pub/Sub + Persistence Hyperledger Fabric smart contracts + ledger Hyperledger Fabric smart contracts + ledger Hyperledger Fabric smart contracts + ledger Hyperledger Fabric Consensus Channel 1 Cloud Platform Components Distributed Blockchain Platform Components The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 9
10 Industry platform that connects and provides benefits to the supply chain ecosystem Global network of interconnected shipping corridors linking the ports and terminals, customs authorities, shipping lines, s, inland transportation, shippers, and other actors Ports and s Ocean s Authorities Freight Forwarders / Provide information about the disposition of shipments within the boundaries of the port / terminal Benefit from pre-built connections to shipping lines and other actors, end-to-end visibility across shipping corridors, and real-time access to more information to enrich port collaboration and improve terminal planning Provide information about the disposition of shipments across the ocean leg Benefit from reduced customer service and network integration cost, less revenue leakage, and less mis-declared cargo due to access to and reliance on a digital audit trail of end-to-end shipment events and source documents Provide information about the export and import clearance status for shipments into and out of the country Benefit from more informed risk assessments, better information sharing, less manual paperwork, and easier connections to national single window platforms Provide the transportation plan, inland transportation events, information on intermodal handoffs, and document filings Benefit from pre-built connections to the ecosystem, improved tools for customs clearance brokerage function, and real-time access to the end to-end supply chain data to improve effectiveness of trackand-trace tools 10
11 Industry platform that connects and provides benefits to the supply chain ecosystem Global network of interconnected shipping corridors linking the ports and terminals, customs authorities, shipping lines, s, inland transportation, shippers, and other actors Inland Transportation Shippers Provide information on the disposition of shipments carried on trucks, rail, barges, etc. Benefit from improved planning and utilization of assets (e.g., less queuing) given real-time access to end-to-end supply chain events for shipments Engage with the solution as a consumer of the shipping information events and paperless trade capabilities Benefit from a streamlined and improved supply chain allowing for greater predictability, early notification of issues, full transparency to validate fees and surcharges, and less safety stock inventory The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with 11 regard to the position to be adopted by Maersk or IBM.
12 On 2018 January 16, IBM and Maersk announced plans to form a joint venture to improve global trade and digitize supply chains Based on blockchain, the new technology will empower faster, more efficient and secure global trade At the center of the new company will be a jointly developed software platform, built on open standards and delivered from the IBM cloud, to enable companies to move goods across international borders with greater transparency and simplicity The new technology platform will benefit all participants including manufacturers, ocean carriers, freight forwarders, ports, terminal operators, shippers, and customs authorities By creating this new company, Maersk and IBM are providing a neutral vehicle for the industry to standardize communications, streamline compliance, and reduce inefficiencies The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 12
13 Governance, Neutrality, Standardization Key issue is proper Governance of GTD to assure Effectiveness and Neutrality of GTD. In line with guidelines on Governance of Data Pipelines (see Public-Private Governance Model (PPGM) in D6.12) GTD Joint Venture The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. IBM and Maersk have agreed to enter into a joint venture, the establishment of which remains subject to receipt of regulatory approvals. Should the joint venture be approved, its operating agreement will provide for the creation of an Industry Advisory Board The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM.
14 Governance, Neutrality, Standardization (2) GTD Industry Advisory Board should ensure the neutrality of the platform and the use promotion of industry standards and open source The advisory board members will consist of interested thought-leading industry players will operate in accordance with competition law These members will jointly participate in definition of the event-ledger alignment with international standards will jointly promote those standards and work with other industry bodies to ensure alignment Members will also be a primary channel/forum for product enhancements roadmap development The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM.
15 2018 timeline (tentative) Business Product Network Clients January - April May - August September - December Obtain regulatory approvals Plan Joint Venture operations Define brand Complete Beta 2.0 release Beta 2.0 testing Onboard ports / terminals and customs authorities participating in the Early Adopter program Onboard Early Adopter clients Execute Early Adopter program; provide feedback Launch Joint Venture Establish initial commercialization Set up Advisory Board Complete Limited Availability (LA) release Launch service delivery and product support Expand network of shipping corridors Onboard new ocean carrier(s) and customs authorities Onboard Clients for LA Transition of early adopters to LA Establish full commercialization Operate business independently Complete General Availability (GA) release Ongoing product development Accelerate network member onboarding Continue to expand network of shipping corridors, ocean carriers, and customs authorities Onboard Clients for GA Offer broad array of shipping corridors The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 15
16 Conclusions Large Volume of Containers & Data Fully Operational Blockchain Fully Secured Data/Document exchange Privacy protection Global Coverage Governance for Neutrality & Standardization Full Commercial roll-out Took 3 EU projects (ITAIDE, CASSANDRA, CORE) for IBM and MAERSK to built up sufficient IT capabilities and business confidence to scale up to global commercialization IBM: from Service-Oriented Architecture (ITAIDE, CASSANDRA) to Blockchain platform The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM.
17 MORE INFORMATION Maersk and IBM collaboration press release Digitizing global trade blog and contact form Blockchain Venture THINK Blog Cross-Border Supply Chain on Blockchain Demo Can the cloud lift global trade? Blockchain application in supply chain news articles
18 Shipment Planning Origin Intermodal Export Compliance Origin Port Ocean Transport Import Compliance Destination Port Destination Intermodal Event Start Shipment Tracking Add Shipment Reference Start Container Transport tracking Add Container Tracking Reference Add Container to Shipment Update Physical Container ID Source Shipper, Shipper, Booking Request Shipper, Submitted Booking Request Confirmed Shipper Updated Shipper, Consignee Updated Cargo Type Updated Shipping Instructions Submitted Packed Container Interchanged End Container Tracking Shipper, Shipper, Shipper,, Event Packed container sealed Packing list available Loading on Truck Loaded on Truck Gate In Gate In Discharge from Truck Discharge from Truck Stuffing Start Stuffing Started Stuffing Completed Container Stuffed Loading on Rail / Loaded on Rail / Rail / ETD Rail / ATD Discharge from Rail / Source Shipper Shipper,, Shipper,,,,,,, Shipper, Shipper, Shipper, Shipper, Rail Rail,, Rail, Rail, Rail, Actual Discharge Rail, from Rail / Event Export documentation submitted Export documentation approved release Dangerous Goods declaration submitted Dangerous Goods request approved VGM submitted Geography specific certificate submitted Geography specific certificate approved Source broker Shipper Shipper, Event Gate In Gate In Discharge from Truck Discharge from Truck Rail / ETA Rail / ATA Source,, Trucker, Termina l,,, Rail, Rail,, Rail, Discharge, from Rail / Actual Discharge from Rail / Loading on Vessel Do not load Loaded on Vessel Rail,, Termina l Not all events are represented above Event Vessel ETD Vessel ATD Vessel ETA Vessel ATA Loading on Vessel Loaded on Vessel Bill of Lading available Discharge from Vessel Discharged from Vessel Shift-cell Shift-pier Source GTD Events Flow Event Advance declaration submitted Advance declaration approved Import documentation submitted Import documentation approved release Certificate of origin available Cargo specific certificate submitted Cargo specific certificate approved Source Event Discharge from Vessel Discharged from Vessel Packed container not selected for inspection Packed container passed inspection Packed container selected for scan Loading on Truck Loaded on Truck Gate Out Gate Out Loading on Rail / Loaded on Rail / Rail / ETD Rail / ATD release release Source Loaded on Truck Rail,, Rail, Rail,, Rail, Event Loading on Truck Gate Out Gate Out Gate In Gate In Discharge from Truck Discharge from Truck Loaded on Rail / Rail / ETD Source, Trucker, Trucker, Trucker, Trucker,, Rail,, Rail, Rail / ATD Rail, Rail / ETA Rail / ATA Discharge from Rail / Actual Discharge from Rail / End Shipment Tracking Seal(s) removed Container stripped, Rail,, Rail, Rail, Rail, Shipper, Shipper, Shipper, 18
19 Blockchain network architecture will ensure segregation across ocean carriers Ocean 1 Channel Ocean 2 Channel Ocean 3 Channel Channel Dots designate node participation in a channel IBM Node JV Newco Node Ocean 1 Node Ocean 2 Node Ocean 3 Node IBM, the JV, and participating ocean carriers will each host and manage a blockchain node A channel will be established for each participating ocean carrier Each node includes the blockchain platform components as well as dedicated blockchainmanaged document storage for that node Sensitive information including documents are distributed only to those nodes participating in a channel; this means that none of a carrier s customer information will be distributed to other carriers Documents are stored on a single node only, and are accessed at runtime by other nodes on a channel as permissions allow The platform provides isolation required by the participants to ensure a verifiable, immutable, consensus-driven and binding service Node The GTD platform is currently offered pursuant to the terms of a collaboration agreement between IBM and Maersk. The establishment of the Joint Venture remains subject to regulatory approvals. None of the information provided in this document should be construed in any way as a representation or undertaking with regard to the position to be adopted by Maersk or IBM. 19
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