Shipping in The Age of Blockchain - An Overview of Tradelens

24-MAY-19

24-May-19 2Table of Contents

Concept of TradeLens

Benefits

Strength of TradeLens

Joining TradeLens

Table of Contents

TradeLens Overview

CONCEPT OF TRADELENS

24-May-19 3IntroductionTradeLens Overview

Classification: Internal

TRADELENS

4

OUR JOURNEY

Introduction 24-May-19

An open and neutral blockchain-based platform that is

digitizing the global supply chain and transforming trade

TradeLens Overview

January 2018

Beta release of the platform and launch of Early

Adopter program; trials underway

August 2018

Formal launch of the TradeLens platform

92 participants signed on

September 2018

TradeLens Limited Availability Release

December 2018

TradeLens General Availability Release

1.5 million events per day published to the platform

March 2017

Initial pilot assessing impact on shipments of

avocados from Mombasa to Rotterdam confirmed

viability and value of blockchain platform; Maersk

and IBM agree to pursue

September 2016

Maersk and IBM agree to invest in a blockchain

prototype to assess feasibility and value

Classification: Internal

24-May-19

1) The World Economic Forum: Enabling Trade Valuing Growth Opportunities 2013

5

are shipped across international

borders each year

Introduction

80% of the goods

By reducing barriers within the international

supply chain, global trade could

More than

$16 trillion in goods

consumers use daily are carried by

the ocean shipping industry

increase by nearly 15%boosting economies and creating jobs1

TradeLens Overview

Classification: Internal

24-May-19 6

AN EXAMPLE FROM OUR PILOT ILLUSTRATES THESE INEFFICIENCIES

TradeLens Overview Introduction

A single shipment of avocados from Mombasa to Rotterdam involves 30 actors, 100+

people, and 200 information exchanges

⦿Inconsistent information across organizational

boundaries and blind spots throughout the

supply chain hinder the efficient flow of goods

⦿Complex, cumbersome, and costly peer-to-

peer messaging

⦿Manual, time-consuming, paper-based

processes

⦿Risk assessments often lack sufficient

information; clearance processes subject to

fraud

Classification: Internal

Introduction

THE TRADELENS PLATFORMDigitizing the global supply chain

Inland Transportation

Shippers / Beneficial

Cargo Owner

Supply Chain

Visibility Systems

Trade

Associations

Supply Chain /

Transportation

Management

Systems

Authorities

Financial / Insurance

Services

Port Community

Systems; Terminal

Operating Systems

Ports and

Terminals

Freight Forwarders

/ 3PLs

Customs

Systems

Ocean Carriers

Customs

Brokers

24-May-19 7

THE PLATFORM IS BUILT ON AN OPEN

TECHNOLOGY STACK AND IS UNDERPINNED

BY BLOCKCHAIN TECHNOLOGY

TradeLens Overview

⦿ Neutral and open platform – connect existing systems

of supply chain members

⦿ Unpinned by blockchain technology – support secure,

auditable and non-repudiable transactions

⦿ Real time visibility – integrate member’s system via API

that enables seamless, real-time information sharing

⦿ Innovation – deploy services through application

marketplace

Classification: Internal

THE TRADELENS ECOSYSTEM

Introduction

Primary consumers and

beneficiaries of the platform

⦿Shippers (BCOs, retailers, manufacturers, etc.)

⦿Freight forwarders, customs brokers, 3PLs

⦿Financial institutions

TRADELENS

PLATFORM

Clients

Applications

Marketplace

Network

Members*

Provide and gain access to end-to-

end supply chain information

⦿Ocean carriers

⦿Ports and terminals

⦿Government authorities

⦿ Inland transportation

⦿Freight forwarders / 3PLs

⦿3rd party data providers

Offer value added services to the

ecosystem through a platform marketplace

⦿TradeLens offerings

⦿Offerings from Network Members and Clients

⦿Offerings from third parties

24-May-19 8

* Others in transport and logistics ecosystem who are not Network Members also provide data to the platform, as requested by TradeLens Clients

TradeLens Overview

Classification: Internal

24-May-19 9Introduction

BCO / NVO FFW / CHB / 3PLInland

Transportation

Customs / Government

AuthoritiesPorts / Terminals

Ocean

Carriers

FFW / CHB /

3PL

Inland

TransportationBCO / NVOPorts / Terminals

Customs / Government

Authorities

TRADELENS BLOCKCHAIN BUSINESS NETWORK

TRADELENS PLATFORM

Packing

ListBill of

Lading

Export

DocumentationAdvance

Declaration

Pre-Paid

InvoiceCertificate of

Origin

Shipping

InstructionsISF

Geography

Specific

Certificate Dangerous Goods

Declaration

Cargo Specific

CertificateCommercial

InvoiceCustoms

Clearance

Import

Documentation

Not exhaustive list of documents managed by platform

SHIPPING MILESTONES AND SHIPMENT DATA

STRUCTURED AND UNSTRUCTURED DOCUMENTS

Sta

rt t

ransport

equip

ment

trackin

g

Tra

nsport

equip

ment

trackin

g

ended

Gate

-out

of

em

pty

conta

iner

from

depot

Estim

ate

d g

ate

-in o

f em

pty

conta

iner

at

stu

ffin

g s

ite

Gate

-in o

f em

pty

conta

iner

at

stu

ffin

g s

ite

Conta

iner

stu

ffin

g c

om

ple

ted a

t

inla

nd l

ocation

VG

M s

ubm

itte

d

Full

conta

iner

loaded o

n v

essel

Conta

iner

seale

d

Gate

out

of

full

conta

iner

from

stu

ffin

g s

ite

Pla

nned g

ate

in o

f fu

ll

conta

iner

at

exp

ort

term

inal

Gate

in f

ull

at

term

inal

exp

ort

Pla

nned v

essel depart

ure

fro

m

exp

ort

term

inal

Actu

al gate

in o

f em

pty

conta

iner

at

depot

Exp

ort

docum

enta

tion c

leare

d

Actu

al vessel

depart

ure

at

exp

ort

term

inal

Tem

pera

ture

update

Pla

nned v

essel arr

ival

at

import

term

inal

Estim

ate

d v

essel arr

ival

at

import

term

inal

Import

docum

enta

tion c

leare

d

Actu

al vessel

arr

ival

at

import

term

inal

Full

conta

iner

dis

charg

ed f

rom

vessel

at

import

term

inal

Conta

iner

sele

cte

d f

or

inspection

Pla

nned g

ate

out

of

full

conta

iner

at

import

term

inal

Custo

ms r

ele

ase

Gate

out

of

full

conta

iner

from

import

term

inal

Estim

ate

d g

ate

in o

f fu

ll

conta

iner

at

inla

nd l

ocation

Gate

in o

f fu

ll conta

iner

at

inla

nd l

ocation

Seal

rem

oved

Str

ippin

g c

om

ple

ted o

f

conta

iner

inla

nd l

ocation

Em

pty

conta

iner

ready f

or

pic

k-u

p

Actu

al gate

out

of

em

pty

conta

iner

from

inla

nd l

ocation

Not exhaustive list of milestones managed by platform

TradeLens Overview

Classification: Internal

Append-only

distributed system of

record shared across

business network

A network of industry

participants maintains a

distributed, permissioned

ledger with copies of

document filings, relevant

supply chain events,

authority approval status,

and full audit history;

every change results in a

new, immutable block

Shared business logic

governing what

transactions may be

written to the ledger

Cross-organizational

business processes, such

as import and export

clearance, are pre-

programmed and built into

Blockchain and distributed

to and executed on the

network, preventing any

member from changing the

business logic

Ensuring appropriate

visibility; transactions are

secure, authenticated and

verifiable

Cryptography enables

permissioned access so

only the parties

participating in a

specific shipment can

submit, edit or approve

related data

Transactions are

endorsed by relevant

participants

Information such as

documentation filings and

authority approvals can

only be changed if

endorsed by the parties

taking part in the

shipment; full audit history

maintained on the

Blockchain

24-May-19 10

TRADELENS AND BLOCKCHAINBlockchain addresses the underlying challenges inherent in

collaborating across a distributed, fragmented supply chain ecosystem

Introduction

SHARED LEDGER SMART CONTRACT PRIVACY TRUST

TradeLens Overview

BENEFITS

24-May-19 12BenefitsTradeLens Overview

Classification: Internal

24-May-19 13Benefits

PORTS / TERMINAL OPERATORS

OCEAN CARRIERS

GOVERNMENT

AUTHORITIES

INLAND

TRANSPORTATION

FREIGHT

FORWARDERS / 3PL

SHIPPERS / BENEFICIAL

CARGO OWNER

FINANCIAL SERVICES

Benefit from pre-built connections to shipping lines and other actors, end-to-end

visibility across shipping corridors, and real-time access to more information to

enrich port collaboration and improve terminal planning

Provide information about the disposition of shipments

within the boundaries of the port / terminal

Benefit from reduced customer service and network integration cost, less revenue

leakage, and less mis-declared cargo due to a digital audit trail of end-to-end

shipment events and source documents

Provide information about the disposition of shipments

across the ocean leg

Benefit from more informed risk assessments, better information sharing, less

manual paperwork, and easier connections to national single window platforms

Provide information about the export and import

clearance status for shipments into and out of the country

Benefit from improved planning and utilization of assets (e.g., less queuing)

given real-time access to end-to-end supply chain events for shipments

Provide information on the disposition of shipments

carried on trucks, rail, barges, etc.

Benefit from a streamlined and improved supply chain allowing for greater

predictability, early notification of issues, full transparency to validate fees and

surcharges, and less safety stock inventory

Engage with the platform as a consumer of shipping

information and means to streamline clearance

Benefit from pre-built connections to the ecosystem, improved tools for customs

clearance brokerage function, and real-time access to the end–to-end supply chain

data to improve effectiveness of track-and-trace tools

Provide the transportation plan, inland transportation

events, information on intermodal handoffs, and

document filings

Benefit from access to a definitive, real-time, and immutable source of information

for trade finance and trade insurance

Engage with the platform as a consumer of supply

chain information

TradeLens Overview

OUR STRENGTH

24-May-19 16Why TradeLensTradeLens Overview

NO. 1: GLOBAL NETWORK

24-May-19 17Global networkTradeLens Overview

Classification: Internal

24-May-19 18

TRADELENS NETWORK OVERVIEW

Introduction

Enrichment Data

Supplements foundational data, in real-time

and direct from the source

⦿Rapidly growing network

⦿Extensive port / terminal coverage

60+Connected Logistics Members

Foundational Data

The core data needed to track and manage

shipments end-to-end

⦿ 20% of global container shipping volume

⦿Vast number of trade lanes covered

20M+Containers tracked

Terminals Inland

transportation

Government

Authorities

Ocean Carriers

(network

members)

Ocean

Carriers*

(participants)

Forwarders/

NVOs

Clients/

BCOs

TradeLens Platform

500M+ Events

Captured

* Ocean carrier who are not network members can provide data as requested by their customers

TradeLens Overview

Classification: Internal

24-May-19 19

CURRENT NETWORK STATUS – AS OF MAY 2019

TradeLens Overview

About the TradeLens

Solution

Terminal Location Operator Status

Algeciras, Spain Port of Algeciras ◎Algeciras, Spain APM Terminals ⦿Apapa, Nigeria APM Terminals ⦿Auckland, New Zealand PortConnect ⦿Avonmouth, UK MCP ⦿Bahrain APM Terminals ⦿Barcelona, Spain Port of Barcelona ◎Bilbao, Spain Port of Bilbao ⦿Brisbane, Australia Patrick Terminals ⦿Buenos Aires, Argentina APM Terminals ⦿Busan, South Korea Port of Busan ◎Callao, Peru APM Terminals ⦿Cotonou, Benin APM Terminals ⦿Elizabeth, NJ, USA APM Terminals ◎Felixstowe, UK MCP ⦿Fremantle, Australia Patrick Terminals ⦿Gothenburg, Sweden APM Terminals ⦿Grangemouth, UK MCP ⦿Gunsan, South Korea KL-NET ⦿Halifax, Canada Halterm Canada ⦿Hong Kong Modern Terminals ⦿

Ports and TerminalsTerminal Location Operator Status

Philadelphia, PA USA Packer Terminals ⦿Pipavav, India APM Terminals ⦿Pecem, Brazil APM Terminals ⦿Pyeongtaek, South Korea KL-NET ⦿Poti, Georgia APM Terminals ⦿Pohang, South Korea KL-NET ⦿Pusan, South Korea KL-NET ⦿Rotterdam, Netherlands APM Terminals ⦿Said, Egypt APM Terminals ⦿Santos, Brazil APM Terminals ◎Sydney, Australia Patrick Terminals ⦿Singapore, Singapore PSA ⦿Tangier, Morocco APM Terminals ⦿Tauranga, NZ PortConnect ⦿Teesport, UK MCP ⦿Ulsan, South Korea KL-NET ⦿Valparaiso, Chile TSP ⦿Valencia, Spain Port of Valencia ⦿Visakhapatnam, India JM Baxi ◎Xiamen, China Port of Xiamen ◎Yokohama, Japan MLC ◎

Terminal Location Operator Status

Houston, TX USA Port of Houston ⦿Hull, UK MCP ⦿Immingham, UK MCP ⦿Itajai, Brazil APM Terminals ⦿Incheon, South Korea KL-NET ⦿Izmir, Turkey APM Terminals ⦿Kwangyang, South Korea KL-NET ⦿Lazaro, Mexico APM Terminals ⦿Liverpool, UK MCP ⦿Long Beach, CA SSA - Tideworks ◎Los Angeles, CA, USA APM Terminals ⦿Maasvlakte II, Netherlands APM Terminals ⦿Manila, Philippines ICTSI ◎Melbourne, Australia Patrick Terminals ⦿Montreal, Canada MGTP ⦿Mobile, AL USA APM Terminals ⦿Moin, Costa Rica APM Terminals ◎Mumbai, India APM Terminals ◎Napier, NZ Napier Port Authority ⦿Newcastle, UK MCP ⦿Onne, Nigeria APM Terminals ⦿

Shipping Events

+ 500M per year

⦿ Live: The Network Member is connected to the Platform and providing data

◎ In Process: The Network Member engaged and/or integration is in process

Some members engaged under Early Adopter Program and/or trial agreements

Ocean Carrier / Short Sea Status

Maersk Line ⦿Safmarine ⦿Sealand ⦿Hamburg-Sud ◎Pacific International Lines ◎KMTC ◎Seaboard ◎Namsung ◎Boluda Lines ◎Zim ◎

Ocean Carriers

Authority Status

Australia Home Affairs ◎Bahrain Customs ◎Canada Customs ◎Dutch Customs ◎Ghana / GCNET ◎Saudi Arabia Customs ◎Peru Customs ◎Singapore Customs ◎Turkey Customs ◎

Government Authorities

Transportation Provider Status

Ancotrans ⦿CN Rail ◎IMCC ⦿Sunburst Truck Lines ◎

Inland Transportation

+ 10M per week

Classification: Internal

24-May-19 20

NETWORK GEOGRAPHIC COVERAGE - AS OF MAY 2019

TradeLens Overview

About the TradeLens

Solution

•

•••

•

••

••

••

• •

•• ••

••••

•

••

•••

•

••

••

••

• •••

•••

Los Angeles

Lazaro

Callao

Valparaiso

Montreal

Houston

Mobile

Philadelphia

Halifax

Elizabeth

Buenos Aires

Itajai

Santos

Pecem

Onne

Cotonou

Tangier

•Algeciras

Valencia

Barcelona

Bilbao

Grangemouth

Liverpool

Avonmouth •

Newcastle

Immingham

Maasvlakte

Felixstowe

•

Izmir

Gothenburg•

PotiBahrain Pipavav

Visakhapatnam

Singapore

Hong KongManila

Fremantle

Melbourne

Brisbane

Auckland

Tauranga

Napier

•Sydney

••

Pyeongtaek

Gunsan

Kwangyang

Pohang

Incheon

Busan

Ulsan

Apapa

Hull

Teesport

•Xiamen

Yokohama

NO. 2: EASY TO PARTICPATE

24-May-19 21Easy to participateTradeLens Overview

Classification: Internal

24-May-19 22

EASY TO PARTICIPATE

Easy to participateTradeLens Overview

⦿Align with UN/CEFACT international industry

standard

⦿Offer open source API with data models and samples

⦿Provide technical support for system integration

⦿Browser based user interface is available

JOINING TRADELENS

24-May-19 23Joining TradeLensTradeLens Overview

Classification: Internal

PARTICIPATING IN TRADELENS

⦿TradeLens is available today for both Clients and Network

Members.

⦿Clients can get up and running quickly and gain access to near real-

time, high-fidelity shipping milestones via the TradeLens web app or

by consuming data via subscription

⦿Network Members must provide data, and can get access to data,

according to the published TradeLens Data Sharing Specification

⦿Interested participants should contact their local IBM or Maersk

sales representatives.

⦿The Early Adopter Program remains open for selected

participants who would trial and help test beta features under

development.

24

Clients

• Obtain a quotation from IBM or Maersk

• Sign SaaS agreement with IBM or

Maersk

• Initiate onboarding steps with TradeLens

onboarding team

Network Members

• Review the TradeLens Data Sharing

Specification and the Swagger API for

publishing / subscribing to events:

https://docs.tradelens.com/

• Sign the Network Member Agreement

with IBM or Maersk

• Initiate onboarding steps with TradeLens

onboarding team

NEXT STEPS

Joining TradeLens 24-May-19TradeLens Overview

Classification: Internal

24-May-19 25

MORE INFORMATION

More Information

www.TradeLens.com

TradeLens documentation:

https://www.tradelens.com/documentation/

TradeLens demonstration video:

https://www.youtube.com/watch?v=-QgPQzwyrCA

Blockchain and supply chain:

https://www.ibm.com/blockchain/industries/supply-chain

TradeLens news: https://www.tradelens.com/news/

TradeLens Overview

THANK YOU

24-May-19 26