What not can be done with blockchain technology? A technology with the potential to reshape the future of all the industries has already entered into the maritime industry, this time changes are to be done in fuelling ships.
A society comprised of fuel suppliers and consumer companies are planning to deliver low sulphur fuel to ships using a system of pre-approved partners within the blockchain community. A closed-loop system that can help in tracking the quality of the fuel supplied to the ships.
Fuelling the ship
One of the big players involved in the marine blockchain industry, Maritime Blockchain Labs (MBL) has revealed their plans to expand the use of blockchain technology for maritime fuel quality assurance and they have called out for potential partners to join hands in the upscaling process. The unveiled plan is set to hit the streets in before the first quarter of 2019.
The coming year could witness pioneered changes in the maritime industry with the introduction of “Low Sulphur Fuel Oil (LSFO)” for all the floating vessels. The uncertainty in the availability and quality of the fuel has challenged all the stakeholders in the supply chain to think seriously.
When implementing the new fuel regulation, quality of the fuel will be a major concern for all the involved parties. LSFO will be blended and if the blending is not in correct proportion then it can cause some serious damage to the vessel. We cannot allow for that kind of trouble, that too when carrying million dollar worth of cargo. The changes in sulphur cap will be implemented from the year 2020, 0.5% is the permitted sulphur content in the blended fuel. It is a challenging task to maintain the quality of the fuel that to a huge risk when entering unknown waters.
Blockchain fuelling ships
With all these issues on the rise, MBL has come up with a solution. MBL, a branch of Denmark-based blockchain start-up “Blockchain Labs for Open Collaboration (BLOC)” have performed a successful test run by delivering high-quality fuels to the maritime industry with the help of blockchain technology. A blockchain based register system that will allow only approved fuel suppliers to supply fuel to the carriers. The recent demonstrator by the BLOC was a huge hit; two more demonstrations are being planned out by BLOC. The project is launched with an aim to regulate and eliminate the hindrances that are slowing down the entire process. Lack of verification for safety documents, paper-based certificate management and a lack of access to validate safety and training certificates are some of the processes that are holding the entire system.
The solutions developed for addressing these issues are created with the collaboration of maritime industry insiders so that the development of the solution does not go in vain. Deanna MacDonald, CEO of BLOC, stated that two more demonstrations are yet to be conducted in collaboration with maritime industry giants.
The consortium will be mainly comprised of ship owners, operators, fuel suppliers, port authorities and fuel testing bodies. It is the learning that we have taken from the original consortium and the contributions and value propositions that have informed the next phase and will allow us to create a global fuel consortium and a process that will tackle the problem of how to trace fuels and know that they are compliant.
This implementation will regulate the industry and thus will eliminate unwanted delays in the operation. A step further in determining the future of the industry.