How interoperability accelerates ocean logistics’ digital transformation
Being able to use data is at the heart of digital transformation. That means being able to find it, analyse it, and share it, without major reconfigurations or complicated processes every time more information needs to be shared. Having solutions that can talk to each other with minimal manual oversight is critical.
That only happens with interoperability. As a report by the OECD’s International Transport Forum noted, “smooth data exchange…will enable faster cross-border interactions.” Unsurprisingly, the study included ensuring interoperability between public and private systems as one of its main recommendations.
Standards as a foundation of interoperability
There is a huge amount of work that needs to go into making systems, applications, and organisations interoperable, but one of the foundational factors is standards.
The ITF’s study highlighted the importance of standards, saying that “the lack of industry standards for data sharing can act as a hurdle to establishing common platforms for information sharing and collaboration.”
The industry is aware of this: 85% of cargo owners agree digital standards are crucial in achieving seamless operations.
Developing standards requires all parties to agree to them. That’s a big undertaking, and there is a risk that we’ll just come back to the same old problem of no one committing to anything until someone else does. We can avoid that by defining frameworks that codify how different solutions can and should work.
The TradeTrust framework
TradeTrust, developed by Singapore's Infocomm Media Development Authority (IMDA), is one such framework. It enables the issuance, endorsement, verification, and transmission of electronic trade documents, including electronic Bills of Lading (eBLs). This framework supports the digitalisation of various transferable records, from bills of exchange to warehouse receipts and promissory notes.
It's a critical step forward to developing consistent digital standards, which is why we’ve adopted it. Our platform can now connect to a public blockchain network supported by TradeTrust, facilitating seamless document transfers and title of possession between different platforms. This interoperability enhancement allows our 135,000+ business users to exchange documents more efficiently while maintaining compliance with international standards.
The integration demonstrates our commitment to developing future standards alongside major shipping and logistics organisations. As one of the first public blockchain-based eBL providers approved by the International Group of P&I Clubs, we’re continuing our journey to pioneer solutions that bridge the gap between traditional trade documentation and digital innovation, with interoperability at its core.
Why organisations like TradeTrust are critical to enabling interoperability
We know from our conversations with the various parties involved in ocean logistics that choosing the right technology to invest in is a major concern. Many are hesitant to trial new solutions without knowing whether their partners are also using those services.
And this isn’t just anecdotal: 32% of cargo owners said that hesitancy to adopt new technologies until industry peers or partners do was a barrier to digital transformation.
But we also know that if shippers, forwarders, carriers, operators and all the other stakeholders involved in ocean logistics chose solutions that are interoperable to their core, then they don’t need to worry about picking the right tool. The likes of TradeTrust are vital in getting to that point, helping develop the standards we all need to work together and transform ocean logistics.
If you’d like to know more about our adoption of TradeTrust, or why interoperability is critical for more efficient, effective ocean logistics, get in touch today.