China Shipbuilding Industry Co., Ltd. (CSICL) — a subsidiary of China Shipbuilding Industry Corporation (CSIC) — is planning to explore ways it can apply blockchain technology in order to finance upstream suppliers, after signing a strategic cooperation agreement on supply chain services with Shanghai Bank.

According to a Cointelegraph report, the terms of the agreement stipulate that CSICL and Shanghai Bank will develop a blockchain-based online platform that would provide financing for upstream suppliers servicing CSIC’s 10 major production sections. These sections comprise marine engineering, storage batteries, shipbuilding, port machinery, turbochargers, tobacco machinery, diesel engines, gas meters, automation distribution systems, and large steel structure fabrications.

The agreement is reportedly part of Shanghai Bank’s strategy to streamline business processes through the use of new innovations. In October 2018, Shanghai Bank initiated an online supply chain financial service platform, known as Uplink e-Chain, for small and medium-sized enterprises (SMEs).

Blockchain has seen widespread adoption throughout the shipping industry and across various supply chains, such as in January 2019 when Zim — Israel’s biggest cargo shipping company — launched a platform for electronic bills of lading that acknowledge receipts of cargos for shipment to clients in select trades.

The following month, Russian shipping logistics firm Infotech Baltika developed a blockchain-based port operation system called Edge.Port in collaboration with Iconic, a blockchain startup based in Moscow.

The Singapore government, meanwhile, announced earlier in March that it would push ahead with trialling TradeTrust, its blockchain-based marine trade platform. The pilot follows a Memorandum of Understanding (MoU) inked in January by Singapore’s Infocomm Media Development Authority, Marine Port Authority, Singapore Shipping Association, and Singapore Customs.

Source: cointelegraph.com

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