The blockchain-powered Global Shipping Business Network (GSBN) has signed a memorandum of understanding with Bank of China (Hong Kong) (BOCHK) to integrate digital trade financing into the supply chain data exchange platform.
BOCHK is the first financial institution to partner with GSBN. The collaboration will allow BOCHK to obtain relevant cargo information directly from GSBN members based on shipping document serial numbers when trade finance applications are submitted (once customer authorisation is provided).
This will help to eliminate the need for paper cargo receipts to be provided for verification, increasing the efficiency of trade finance authentication checks.
“BOCHK is committed to strengthening its cooperation with the shipping industry, with an aim to accelerate process optimisation, information transmission and service innovation between the finance and the shipping industry. All these will enhance operational efficiency of supply chains and promote the development of international trade,” said Teng Linhui, General Manager, Transaction Banking Department, BOCHK.
“As GSBN’s founding members are international key players and participants in the shipping industry, the collaboration enables BOCHK to build a secure and trusted supply chain finance ecosystem with its partners in the shipping industry.”
“Going forward, both parties will work together to explore different scenarios and models and bring about integration of trade finance and shipping logistics, the two important elements in supply chains, in order to promote trade facilitation and create value for customers.”
During the initial phase of the integration process BOCHK says it has successfully completed pilot transactions with two founding members of GSBN, namely COSCO Shipping Lines and OOCL.
In addition to these two participants, GSBN’s shareholders include major global carriers and terminal operators like Hapag-Lloyd, Hutchison Ports, SPG Qingdao Port, PSA International, and Shanghai International Port Group.
“GSBN has been established to enable and accelerate the digital transformation of the shipping industry. Its industry-wide, secure, trusted data exchange platform will facilitate the sharing of data to streamline operations, improve the user experience and create value for all stakeholders in the supply chain,” said Bertrand Chen, Chief Executive Officer, Global Shipping Business Network.
“We are here to simplify trade for all. The collaboration with BOCHK aims to extend this digital transformation beyond logistics service providers to financial institutions.”