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Partnership will increases speed of logistics and ease of conducting trade globally
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Partnership will drive interoperability between Contour’s digital trade finance network and GSBN’s blockchain-enabled operating system
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It will support the entire workflow involved in trading goods around the world, from accessing trade finance and managing shipping documents to having goods released from a port
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Importers, exporters, logistics service providers, and financial institutions will all benefit from improved efficiency and reduced cost
Digital trade finance network Contour has partnered with technology consortium Global Shipping Business Network (GSBN) to provide an end-to-end digital solution to the trading, financing and shipping of goods worldwide.
This as pandemic-induced lockdowns and the e-commerce boom have pushed the logistics industry to its limits, but inefficient manual processes are still commonplace and creating bottlenecks.
GSBN’s blockchain-enabled operating system and its product Cargo Release enables highly efficient and transparent digital sharing of verified logistics and cargo data. This streamlines business operations across the whole supply chain, cutting the time for cargo to be document ready for release from days to a matter of hours.
The partnership with Contour’s network, which digitizes paper-based trade finance processes such as letters of credit (LCs), will drive interoperability for users of both solutions. By harnessing both solutions, companies can experience a seamless connection between the physical supply chain and the financial system.
The partnership will support the entire workflow involved in trading goods around the world—from accessing trade finance and managing the documents underpinning the shipping process, to having goods released from a port.
“Participants including importers, exporters, logistics service providers, and financial institutions will all benefit from improved efficiency and reduced cost,” according to a joint statement released by the two parties.
GSBN’s large and growing footprint complements Contour’s established presence as a leading digital trade network across Asia and beyond. Contour continues to expand its network of partners across the region, and recently launched its first domestic offering in Bangladesh.
Hong Kong-based GSBN is the world’s first independent, not-for-profit technology consortium to build a blockchain-enabled operating system to redefine global trade. Its founding members include COSCO Shipping Lines, COSCO Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, SPG Qingdao Port, PSA International and Shanghai International Port Group.
Carl Wegner, CEO at Contour, said: “The global logistics and shipping industry—like trade finance—is in critical need of digitization. Counterparties need to be able to interact with trust, certainty and security—both in the way they finance trades and in the processes that support the physical shipment of goods.”
Bertrand Chen, CEO at GSBN, said: “This partnership with Contour breaks down another silo by connecting the physical supply chain to the underlying financial system. This will pave way for more trusted collaboration between market participants, as well as a more efficient and resilient global supply chain.”
Industries such as metals, energy, petrochemicals, textiles, soft commodities and retail have conducted successful LC transactions on the Contour network, and Contour has recently announced it will soon expand beyond letters of credit following its successful funding round.
Photo by Markus Spiske on Unsplash
