Open Smart B/L™ App

Questions & Answers

All your Frequently Asked Questions in one place. We try to update them as often as possible.
CargoX related
Where is CargoX based? Slovenia or Hong Kong?
CargoX is a spin-off from an existing business 45HC, which has an office in Hong Kong, but is based in Ljubljana, Slovenia. CargoX Foundation will probably be based in Hong Kong and an operational legal entity will be in Slovenia, EU.
Are you related to the CargoX shipping company from Brazil, or CargoX PTA from Spain?
No, we are not. When we bought the CargoX.io domain, the CargoX company from Brazil was not very visible, nor was the Cargox PTA which holds the Cargox.com domain. Our lawyers have verified their trademarks, and we are happy to report that there is no need for concern.
Do the team members have a long history of collaborating? Has any team member left the team?
Some of the core members know each other and have worked together for more than 15 years, but most of them more than 10 years. The founders worked together at K+N, so have a long history together.
Are you only handling sea freight?
Yes, the platform is currently specialised for sea freight only. We have plans to expand, but our roadmap for the next 2 years focuses on maritime transport only, as we felt there are a lot of opportunities there. It is also cheaper and easier to develop things consecutively.
Do shipping companies need to have a blockchain expert employed to use your service?
The process will be quite easy, companies will need to register/login or EDI/API connect with the Smart B/L™ dApp. Once Bill of Lading is created, it is stored in decentralised storage – there are already public addresses of importers/exporters on that document. All parties will just need to do KYC (Know Your Customer) so we know who is who, as the Bill of Lading can not just be issued by anyone. No other knowledge will be needed. If they know how to use online banking, they shall be just fine. There is no need for any development on the part of our partners or logistics companies. If you print a Bill of Lading today on paper, you are good to go with our dApp.
Will you implement atomic swaps for the Bill of Lading tokens?

Atomic swaps will enable cheaper, faster and safer exchange transactions between different cryptocurrencies. The technology is still in the prototype stage and we are monitoring it closely. Since our token will be an ERC 20 token, we will rely on the capabilities of the Ethereum network, especially the Raiden network.

We are confident that it will be crucial in the future to eliminate any friction in exchange to and from several other cryptocurrencies, tokens and fiat. Hence, we are following the progress made by other development teams (e.g. altcoin.io, ace-platform.com, tokens.net). Since our primary innovation is in the shipping industry, we believe in establishing long-term partnerships with projects that are developing customer friendly solutions that will enable fast, secure and user-friendly exchange and will in future take care for adaptations to the newest exchange technologies, like atomic swaps.

Are there other companies blockchainising Bills of Lading?
Yes, there are: IBM and Maersk working on a solution for Maersk. There is WaveBL claiming to do something similar, however no information can be found on their page. What we do differently from IBM and Maersk is that we are working on a solution for mass adoption with freight forwarders. Also, they are trying to add other parties within the loop (customs, etc.) which is perhaps fine for Europe, but impossible in the short term for Russia, Brazil or other countries which have a slightly more complicated procedural structure. We are also aware of Vechain and Kuehne+Nagel, but these are all very big projects and companies. Our approach is very different from theirs – gradual and laser-focused. We foresee that we will be the first on the market, and we are the only one with an open ecosystem, so we expect wide and fast adoption.
Why is it important to reduce shipping time for Bill of Lading documents from weeks to minutes, if the container cargo on a ship is travelling for many weeks anyway?
There are also faster and shorter routes where a container needs only a few days. But in general that is true. However, a Bill of Lading is issued when the vessel / container departs (usually within 3 days), and in a perfect scenario the importer would get the Bill of Lading before the arrival of container (with high express courier costs). In many cases this is not how it goes. There are payment delays due to bank transfer, sometimes the importer needs a few days to get the money, there are holidays in between, etc. And each day of the container waiting in port will incur additional costs, not to mention other issues which might arise due to late container delivery.
Aren't there a lot of companies who use e-waybill already (e-waybill is a Bill of Lading but just sent by e-mail)? The biggest shippers like Maersk, MSC, China Shipping do that a lot. What is CargoX's advantage over e-waybill?

E-waybill Bill of Lading can not resolve the trust issue. If an importer has a Bill of Lading that means the importer has paid for the goods to the exporter... If the importer doesn’t have the Bill of Lading, there might be many reasons behind this and in the worst case the exporter can claim the goods back from the logistics provider...

There are several versions of this document. There is also the seaway bill (and others) which doesn’t need to be presented physically. However, the Bill of Lading is the only guarantee the exporter has that he will get paid for goods produced.

Having the Bill of Lading on the blockchain means that it cannot be stolen or lost, its ownership and authenticity is 100% verifiable by anyone, meaning that it can be highly trusted (emails can be spoofed on the other hand). Also, it means no more scanning of documents, thus it is time saving.

And we don’t even focus on shipping lines: our target group are freight forwarders, which issue more Bill of Ladings than shipping lines. One function of blockchainised Bill of Lading is, of course, release for cargo, but apart from that, you can have the benefits of tracking (location, movements, temperature, origin/producer) and on top of that you can add value added services such as storing, insurance, QC and, later also financial settlement or 'escrow' directly on the blockchain. And with that you step away from 'just' a Bill of Lading and get a very useful supply chain tool.

Will you distribute the profits or part of the profits of CargoX to token holders? If yes, how – buyback and burn, or ETH dividends, or… If not, why should the price of CXO token appreciate?

We believe in building a service that will provide more and more value to its users and we intend to innovatively entangle our token with core interactions on our platform, which are the creation and utilisation of digital Bill of Lading documents.

Our token is a part of our digitised business model, a part of our software and we do not believe that destroying assets is the right way to do business.

Our aim will be to minimise the transaction costs of such interactions, to provide better matchings and to provide trust — of course, leading to a bigger and bigger CargoX ecosystem. But this does not mean that we will be passive in regard to CXO tokens — we are planning to use them mostly to actively incentivise the launch of our platform and later incentivise its growth; to provide better and better utility for token owners.

So, the answer to your question is no, we are not planning to distribute profits to token holders, we are not planning to burn the tokens or put in place a mechanism to do a buyback. But we will do our best (e.g. using the substantial part of platform's profits) to grow our user-base and design CXO utilities in such a way that more and more users will be active on our platform.

Please note that both, dividends and promise of buyback or burning tokens to push the price up can do more (long-term legal) harm to the project than (short-term) benefit. We will wait for the regulators to perform proper scrutiny of such practices and will consider their response while designing our incentivisation mechanisms.

What are the barriers in accepting your service as a legal equivalent of an actual paper Bill of Lading?

Going directly to carriers (Maersk, MSC, CMA,...) would keep things slow because of the regulators. But we have done it it differently. We will approach logistics companies who can accept this without any issues, as long as they are certain that the one claiming the goods is the only one with this Bill of Lading token. And this is easily done in blockchain. Just like sending eth from one address to another. So the exporter will send ‘Bill of Lading token’ to importer once he gets paid. At that moment he will no longer have it, only the importer will. And it is archived for a certain period of time – a benefit available to token holders.

In the second phase, we aim to address that “once he gets paid” part, as currently this action is clearly based on trust. Once we integrate onchain payments, the Bill of Lading smart contract will detect payment, and change ownership of the Bill of Lading from the exporter to the importer automatically. No need to trust anyone, and no need for expensive escrow like L/C (bank's letter of credit).

Isn't the telex version of Bill of Lading already widely used nowadays?
Not so widely, and you still need to issue, transfer, store and archive original documents. The blockchain Bill of Lading is faster, cheaper, more convenient and upgradable for the supply chain. Blockchain Bill of Lading is not only a substitution for a paper Bill of Lading. It is a multifunctional tool for global trading, connecting all the dots – instant transfer of ownership, it is risk free and much cheaper to issue, hold, transfer and store.
Which advantage over telex Bill of Lading do you see in your product?
There are several advantages. Apart from the fact that you can not always have telex with original Bill of Lading - and even telex carries costs and delay. In our experience it takes approx 3 days to get a telex release, which is sometimes too long. And the cost is lower but still somewhere between USD 25 and 50. BUT, Imagine a system which is not ONLY a Bill of Lading, but more like a digital document, which offers many functions. One function is, of course, release for cargo, but apart from that you can have the benefits of tracking (location, movements, temperature, origin/producer) and on top of that you can add value added services such as storing, insurance, QC and, later also financial settlement or 'escrow' directly on the blockchain. And with that you step away from 'just' a Bill of Lading and get a very useful supply chain tool.
Where can I see a comparison of a paper Bill of Lading vs. Blockchain Bill of Lading?
Please read our whitepaper, available at https://cargox.io/CargoX-Whitepaper.pdf.
What happens if the CXO price rises dramatically? Will the CargoX Bill of Lading become uncompetitive?
The price of Bill of Lading and other services on the platform will be set in USD or EUR, but decided as we get closer to the realisation. Users (exporters/importers/logistics companies) will be able to pay for it with CXO tokens (and get a discount on the price). The amount of CXO needed for payment will be decided by CXO/EUR or CXO/USD rate at that moment.
Where will shipping firms get CXO tokens from?
Logistics companies that are fast enough to be among first 100 to sign a partnership with us, will get a welcome packet of (to be decided later) CXO tokens. After they use them, they will need to buy them on exchange, like all the rest.
Is the CargoX.io project open source?
We have not licensed any code as open source yet, but token source code, smart contracts etc. will be open source. They are published on Github – https://github.com/CargoXio.
Is the actual product functional? Or only in theory?
MVP is in development. We already have test customers for beta testing. So we can expect that the first Smart B/L™ shipment (and also the first in the world) will depart in Q1 2018.
Have you looked at *this* or *that* similar project?
Yes, we know them all. We think they do not compete directly with us. We are starting with “digital Bill of Lading” but in later phases of the project we intend to do much more. Read whitepaper https://cargox.io/CargoX-Whitepaper.pdf for details.
What about your partnerships?
We are in talks with several potential partners and customers. We have a major announcement in the pipeline, which we expect to be finalised in February.
How will CargoX earn money, if the CXO tokens are already sold?
We will issue Smart Bill of Ladings, and they will be paid for with CXO, or with dollars.
When will you beta-test the Smart Bill of Lading?
We already have test customers for beta testing. We can expect that first Smart B/L™ shipment (and also the first in the world) will depart in March/April 2018. The logistics company behind the pilot is one of the 7 largest in the world.
Is CargoX.io the only blockchain solution for paper-based proof of ownership?
Why do you use blockchain technology and not just a regular database?
Because we need it for actual value transfer. Every Bill of Lading carries value (average USD 60,000), and with use of blockchain we transfer this value, just like sending a token on blockchain.
Does your solution make screening easier, or are documents just scanned instead of digitised?
Documents will be stored in digital form, but you will be able to print them if needed, on the same form as is known today.
How will you solve this issue if the customs authority in each country requires the original documents?
Customs do not need the original B&L (we know this for certain for 95% of the countries). Sometimes they ask for a copy – which is a pdf or a copy of a Bill of Lading (and can be printed from our dApp). The original Bill of Lading is only needed to release a cargo and is requested by the release agent. They need to know who the owner is, so they do not release cargo to the wrong hands.
Is there any GitHub or demo that can be reviewed to shows the product you are proposing? As far as I can see there seems to be nothing to show us. There is no prototype of the new Bill of Lading protocol.
dApp is under development, not available for public yet.
There is not much technical detail in the whitepaper. Is there more detail somewhere?
The WP is describes the idea, a bluepaper would be more technical but is not available. If you look at our roadmap, definition of the protocol and technical specifications is planned to be completed in Q1.
You are proposing to be the arbiter between parties in disputes. I think there would be concern amongst the industry about being reliant on a single party for this.
We will act as an arbiter in the worst case scenario. We don’t see that happening however, as today it is almost unheard of that a paid exporter does not sent the Bill of Lading to the importer. But we will have authority to add NVOCC and allow them to issue Smart B/L™. And this carries certain liabilities that we need to be able to address.
How exactly does it work when I'm a shipping company and want to join you?
We are open to new partnerships, please contact us through https://cargox.io/become-a-partner form.
45HC related
What is 45HC?
45HC is an e-logistics company that currently specialises in sea freight and is offering services from FE (Far East) to Slovenia, Austria, Hungary and Croatia. We have been in the market a little more than two years, and already have more than 200 paying customers, and our yearly volume growth was over 600%. In 2018 we plan to expand to new regions (Germany is a priority) towards covering of the whole EU. Our customer base is expanding mostly through our existing happy clients, but strong marketing campaigns are planned… If you want to know more about CargoX, consider watching Štefan’s pitch for 45HC in front of VCs here: https://m.youtube.com/watch?v=XRFvtcbFNpY
How is CargoX connected to 45HC?
CargoX is a spinoff and partner of 45HC. At 45HC you will also be able to pay with CXO token which brings crypto to shipping. 45HC has strong business connections to the world's largest logistics and freight companies, so that is opening the doors for CargoX. Smart B/L™ is a very interesting tool for supply chain optimisation, which means that we are bringing value to everyone in the industry.
Who are the competitors of 45HC?
Every logistics company can be considered as competition, but in reality only the e-logistics startups are (Flexport, Searates, Freighthub, Kontainers, i-containers,...). We are all young companies, and market is really huge and segmented – for example, the biggest freight forwarder in the world has only a 2% market share. These e-logistics startups, however, have totally different business models to 45HC. Besides, we have many unique advantages, so our customer retention is over 98%. 45HC has a lean setup which allows us to have the lowest prices on the market. You also get 24/7 live tracking, instant price and transit times quotes, and can complete an order in less than a minute (while the average industry response time is 10-12 days).
CXO token related
What is the CXO token supply?
The total CXO token supply is 215,119,015. Circulating supply is much lower as 25% of all tokens are reserved to cover future developments and locked away for 1 year (until 23.1.2019). Similarly 15% of CXO tokens intended for team members and founders are also locked for a year, with quarterly cliffs.
What will you do with remaining tokens? Will there be any?
CXO tokens will only be issued for each contribution we receive. They are not premined, so there will be no remaining tokens.
Will you mint another batch of CXO coins at a later time?
No, we will never issue any additional CXO tokens.
What will the CXO tokens be used for?
Tokens will be needed for issuing Bill of Lading. Storage and other benefits will be available to token holders. Apart from that you will be able to pay transportation costs (first at 45HC.com) with CXO tokens. For a full list of usage scenarios, please read the whitepaper available here https://cargox.io/CargoX-Whitepaper.pdf.
When will team tokens be unlocked. Are there any other locked tokens?
Tokens of team members and founders are locked for a year, with quarterly cliffs. Also, the tokens reserved for future developments are also locked for 1 year.
Where do I find the market price of CXO after the crowdsale?
As with all coins you will be able to track it on coinmarketcap.com ... regarding the price after the crowdsale, many factors will influence it. We will try our best to develop the product as rapidly and with highest quality as possible, and bring new partners onto the platform.
Which wallets support CXO token?
CXO is an ERC20 token, so every wallet that allows you to add custom ERC20 token, and for which you hold the private key (or can export it) should be fine. We have make a list of supported wallets here https://cargox.io/wallet-CXO-token-support.

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