Logistics Firm Panalpina Trials Blockchain in Supply Chain

Logistics Firm Panalpina Trials Blockchain in Supply Chain
June 13, 2019

 

The cryptocurrency market is gathering momentum with major altcoins staying in the green for the past two days. Bitcoin (BTC) has once again broken above 8,000 levels. It has gained 2.5% in the past 24 hours to trade at $8,110. Litecoin (LTC), which has gained nearly 30% in the past one week as the day of the halving of mining reward approaches, has lost 3.5% in the past 24 hours to trade at $134.40. However, Ethereum (ETH) has gained 4.2% in the past day to trade at $258.75. Other altcoins which are trading with daily gains include IOTA (MIOTA-$0.4342, 0.4%), Binance Coin (BNB-$34.90, 4.1%), Ripple (XRP-$0.4028, 0.5%), Stellar (XLM-$0.1267, 2.4%), Cardano (ADA-$0.0939, 5.5%), Bitcoin Cash ($396.65, 1%), Tron (TRX-$0.0332, 4.7%) and EOS (EOS-$6.5, 1.6%).

 

Government level initiatives

Fuzhou to provide subsidies to blockchain firms

The Chinese province of Fuzhou is promoting startups related to blockchain technology by offering rental subsidies. The reward is one of the three steps taken to spur growth. Blockchain startups will receive a maximum of 600,000 yuan ($86,800) as a discount on rent bills for three consecutive years. Traditional firms are also encouraged to adopt blockchain, with 20% of development and implementation cost covered under the promotional scheme. Endeavors that receive awards for innovation or cause path-breaking transformation in Fuzhou will receive a cash reward of up to 600,000 yuan.

Tech labs and research centers that develop industrial blockchain platforms will be eligible for a cash reward of two million yuan ($289,000) if approved by Chinese authorities. If the innovation inspires top-level meetings at “international, national and provincial levels,” then the organization involved in the project will be considered for a cash reward of one million yuan ($144,500).

 

Private sector initiatives

Amazon unites with Legal & General for pensions blockchain deal

The e-commerce behemoth Amazon is collaborating with the UK-based insurance company Legal & General to build a blockchain system for handling corporate pension-related processes. Legal & General intends to utilize the Amazon administered blockchain for processing bulk annuities, which come up when enterprises move their pension schemes to Legal & General for insurance.

An article published in Financial Times has pointed out that enterprises enter into bulk annuity transactions with insurers as discussed above in order to avoid the responsibility of individually paying pensions to employees.

Thomas Olunloyo, CEO of Legal & General Reinsurance, has elaborated how a blockchain platform is perfectly suitable for processing annuities given its longevity.

“… it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.”

 

Panalpina initiates blockchain projects for upgrading supply chain efficiency

Panalpina, the Swiss forwarding and logistics services firm, has initiated blockchain trial projects intended to improve supply chain efficiency. Panalpina, which is one of the largest transport and logistics firms in the world, reported a profit of $76.30 million in fiscal 2018. The firm became a member of Blockchain in Transport Alliance (BiTA) in May and has unveiled two blockchain trial programs, one each in air and ocean freight domain, with handpicked clients. While one trial program will study blockchain implementation in high-tech industrial products, the other will focus on office supplies.

Panalpina intends to digitize trade records, hold them in the cloud, and employ blockchain technology to enhance processes and minimize expenses over long-term. In particular, Panalpina will utilize a blockchain-based monitoring system to save data related to the movement of goods from Asia to Europe, alongside real shipments and without meddling prevailing processes.

Regarding blockchain projects, Cedric Rutishauser, senior venture development manager at the Panalpina Digital Hub, said: “These early-stage projects are 85 percent about digitization and 15 percent about blockchain – we are starting to see clear benefits in cost savings through simplified and speedier processes, and lower document courier costs. But the real advantage of blockchain lies in the ‘single source of truth’. Improved data sharing between trade partners creates more transparency, with clear ownership and responsibility for each documented step in the supply chain.”

 

Blockchain education initiatives

UBC launches a blockchain training program

The University of British Columbia (UBC), which is situated in Canada, has introduced a blockchain and distributed ledger technology training program specifically for Masters and Ph.D. students.

The training program has been structured to enable students to gain a thorough knowledge of blockchain technology while centering around four crucial sectors that would benefit the public. They are clean energy, health and wellness, indigenous issues, and regulatory technology.

UBC intends to provide training to 139 students in six years. Graduates who complete training will have all the tools required to create and assess blockchain systems and also discover opportunities for implementation of blockchain.

Mitacs, Canada based non-profit research organization, and 15 industry associates will offer CA$2.44 million for 156 internships and post-doctoral training ventures.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Richard W

Richard W

Richard is the guy who know everything there is about the financial industry, working in a top firm for over 15 years, he will give the lowdown on some of the biggest companies in the world


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