The railway trade route between China and Europe has been the subject of major improvements in speed thanks to the use of blockchain technology, according to the China People Daily website.
Chengdu International Railway Port in Sichuan Province was established by the Industrial and Commercial Bank of China with the blockchain-based Sino-Europe Trade Link 2.0 platform.
It is reported that in addition to reducing labor-intensive control over logistical documents, the new system will allow foreign trade companies to collect money directly from the bank to speed up the flow of funds.
Transactions that transported goods from China by rail took more than a month to reach destinations in Europe. Documentation and invoice must be checked at every border crossing as logistical services are hampered by translation difficulties and bureaucratic delays.
During the first three years and three months of its existence, the China-Europe cargo service managed to make 200 flights. Since the introduction of blockchain technology, the same number of journeys have been completed in just two months.
An ICBC employee told reporters that the advantages of the system that supports the blockchain make it a reliable platform for hosting and tracking trade data.
“We are leveraging blockchain security, such as tamper protection and timestamping, to create reliable business data. This could improve financing opportunities for small and medium-sized foreign trade companies,” they said.
Chen Ran of Chengdu International Inland Port Operations said that the past decade has seen a fundamental change in the way global trade is managed, adding: “Compared to 2007, we now have support from blockchain, IoT and big data that can facilitate traceability. Bulk goods, providing better protection for both banks and customers. “