ConsolFreight, an operator in the digitised freight forwarding industry has commissioned Europechain, a GDPR blockchain platform to develop a Proof of Concept (POC) for the freight forwarding industry. The POC will examine blockchain as an enabler of trade finance in international logistics operations and is hailed as the new intersection between FinTech and FreightTech.
“We chose Europechain to protect our clients working in Europe” said Ernesto Vila, CEO ConsolFreight. “As a global operator we needed to offer a solution that is compliant with GDPR as well as a registered business with registered offices. This is critical to business”.
The POC uses a number of high-profile clients to track the transport of goods across international borders with an independent freight forwarder providing the trade finance rather than traditional lines of credit offered by banks. Underpinning the process with blockchain allows the transaction to remain secure and low risk through a combination of Internet of Things (IoT) and smart contracts.
Villa points to the unique low risk presented by this blockchain solution. He stated: “In our model, the cargo is examined and approved at final destination before the funds are released from the escrow account. This is radically different from traditional finance in the form of line of credits where payment is made even in the case of goods becoming lost, damaged or even stolen. While loss through accident can be simply rectified with insurance, loss or damage with purpose is a much more complicated process. With our POC, monies are not released without approval in either case which will lead to much better, fairer and swifter financial recompense”
ConsolFreight opted to partner with EOS Dublin and use the Europechain EOSIO blockchain for key reasons: compliance, immutability, speed, no cost transactions and security. The implementation of this POC combines traditional API’s with modern blockchain smart contracts. ConsolFreight will be included in the growing list of partners on the Europechain network.
Sharif Bouktila, CEO of EOS Dublin and founding member of Europechain, welcomes the opportunity to trial the benefits of the EOS blockchain in a real-world case. “We are doing some pretty interesting stuff with the EOSIO smart contracts, facilitating the workflow and tracking asset ownership. Using a non-fungible token (NFT) contract we will create, issue, transfer and burn NFT’s. These NFT’s will be used to track asset ownership throughout the workflow and will also provide escrow functionality for the token. Ultimately a smart contract will store the detail of the contract thereby issuing pay-outs based on received data. AT the end of the day Freight Forwarders want an easy to use, fail proof system. We are offering them just that – and at a much-reduced cost. Technology, notable EOSIO blockchain, is solving the issue of expensive, inflexible and problematic trade finance.”
Sea News, November 1