Kuehne+Nagel for the first time uses the benefits of blockchain technology on a large scale. It supports 800,000 transactions monthly and simultaneously updates verified gross mass (VGM) data to the company’s VGM portal.
The global logistics operator has made the first version of VGM available in 2016 to allow shippers to easily complete the VGM declarations that are required for maritime shipments based on the International Maritime Safety Convention (SOLAS). Now, the use of blockchain technology allows for further data exchange between different partners.
The improved solution provides forwarders with new features that have increased the convenience of their operations, as well as the degree of transparency of VGM statuses of all customer shipments and the history of stored information. All information entered into the portal is stored in a chain, which allows the use of internal blockchain interfaces to exchange data with third parties. Thus, additional communication channels are no longer required. Kuehne+Nagel has designed a solution to fully meet industry requirements for confidentiality and data privacy. The blockchain technology guarantees durability and data traceability.
The list of promises related to the use of blockchain technology in the logistics industry is long, but its practical use is rare,” says Martin Kolbe, IT director at Kuehne+Nagel International AG. „This technology brings benefits to our clients, being a fully secure solution for information exchange with third parties, with increased efficiency and higher transparency,” adds Kolbe.