The container shipping industry has experienced significant developments for the past few years. Currently, it occupies 60% of the global seaborne trade. Also, the CEO and Founder of Blockshipping, Peter Ludvigsen, mentioned that there are now over 25 million freight containers in the world.
These developments gave rise to specific issues that the industry found themselves stuck on.
The Denmark-based Information Technology and Services company created the Global Shared Container Platform (GSCP) to solve some of these significant issues. The release of GSCP was expected to happen in May 2018.
The issues facing the Container Shipping Industry
The shipping industry has faced the problem of overcapacity, lower freight trades, security threats and increasing environmental regulations. The industry is currently facing a massive load of financial pressure and require immediate solutions to optimise its processes.
The total value for using the containers for transport of various goods was around US$ 12 trillion in 2017. According to Peter Ludvigsen, “The problem here is that we have no central registry of all these containers – constantly shifting location, incurring payments and changing ownership”. This problem gave rise to many empty containers being moved around unnecessarily.
How can the GSCP solve these problems?
Peter Ludvigsen was very confident in the ability of GSCP, claiming that it can solve critical industry problems.
The GSCP will act as the missing container registry, and it will be based entirely on blockchain and modern sensor technology. The GSCP has the capability of saving the industry US$ 5.7 billion annually.
Such potential of the GSCP can also positively impact the environment. It can reduce over 4.5 million tons of global carbon dioxide emissions per year.
How does the GSCP work?
The GSCP ensures future profitability and compliance with environmental regulations by providing increased efficiency, improved processes and a fundamental digital transformation to the shipping industry.
It issues two tokens: a Container Platform Token (CPT) and a Container Crypto Coin (CCC). The CPT is the utility token used in the GSPC transactions. It is an internal token that acts as a domestic currency for the clearing of transactions within the platform. CPT is deployed on the GSPC blockchain and secured with the use of US dollar.
The CCC is an Ethereum based external token issued to ICO investors. This revenue sharing token has a unique set of features including a Revenue Sharing Pool and the Market Maker Fund. The Revenue Sharing Pool passes on the percentage of revenue generated from the GSPC transaction fees to the CCC token owners.
The Market Maker Fund provides the people who bought the CCC tokens, either during the pre-sale or the public ICO, an option to sell their coins at any time, should they wish to do so. It is a mechanism built to make sure that the market price of the tokens does not reduce below the pre-determined limit.
The massive support for the GSCP project
The GSCP project has received enormous support from not only people including Bridget Cosgrove, Franck J. Kayser and Jesper Præstensgaard but also from the world’s largest container carriers.
Peter Ludvigsen claimed that the project “is already funded by private business angels and the Danish Maritime Foundation”. It has even managed to receive further fundings from respected shipping foundations and private investors.