MOBILITY & LOGISTICS

In human and goods transportation, blockchain/DLTs can improve data integrity and robustness, enable decentralized, peer-to-peer transactions, and establish reliable digital identities for vehicles, components and consumers.  How can the emerging technology be used for tracing of provenance and history of goods? How can it help automatization of administrative burden in the areas described below?

  • Verification of goods/ vehicle identity and goods/vehicle history

  • Car and ride sharing: mobility commerce platform and automate machine payments

  • Usage-based insurance and taxes

  • Sustainable manufacturing

GEOFENCING — PORT FEES FRAUD

  • Port fees are a large expense that shipping companies face.

  • Minimizing port fees and time in port is critical to shipping companies since an extra day in port can cost thousands of dollars.

  • Chartered ships may ask to be paid for port fees that are not realized or ports not visited.

  • The number of days may differ from actual time spent in port.

ONE PLATFORM FOR SHARING DATA ACROSS THE WHOLE RETAIL

The holy grail for everyone who is a supplier to Retail companies is to have complete data about sales, inventory, future promotions, future price changes etc. Suppliers can use these data to dramatically increase their performance and inner efficiency. Basically, they can use fewer sources. On the other side are big retail companies. For them, this can mean also huge benefits. For example, increase in On-shelf availability, a decrease of working capital, an increase in profitability etc.

This use case is about to create proof of concept for the platform where you can easily share your data with your suppliers and you can be sure that no one else will see it. The transparent platform where you can secure your critical data for managing supply chain processes.

Prepared data for this use case:

  • Master data of articles (id, EAN, name, categories, lead times)

  • List of stores

  • On hand inventory per store

  • Sales history per article, store and day

  • Future purchase orders per article and DC (distribution centre)

  • List of future promotions (promotion price, page, type of promotion window etc.)

  • List of supplier companies

WAREHOUSE RECEIVING

The daily routine of millions of companies around the world is to come to the customer warehouse and then unload their trucks, somebody will check the quantity, quality and right structure of ordered products and then somebody else or the same person will put away these products right into the shelves. If everything is alright, then the money can be transfer. But the current situation is quite complicated and most of these processes are in delay including the money transfer. In this case, you can develop support for these processes right on blockchain and after successful fulfilling, the money or the contracted part of the money will be immediately released.

BUNKERING FRAUDS

Fuel can be the single greatest expense in the daily running cost of ships. Fuel prices have been continually rising and never really fell significantly. Such values may provide a strong incentive for criminal designs to commit fraud. Quantity, quality, ports of call or over mid-sea transfer are some things that often occur

Incidence are on the rise and commonly, disputes and alleged misdealing are in respect of:

  • Quantity consumption by the vessel

  • Quantity of deliveries

  • Quality of deliveries

  • Location purchased/traded

 

CHARTER SHIPPING AND TRACKING

Shipping is a global business, with many players and roles involved in any single shipment of cargo, even a simple voyage, there are a many potential pitfalls where malicious players seek to take advantage. Often based in multiple locations, through Brokers and Financial Institutions, there often is no opportunity to make “validity checks” of 3PL subcontractors. Often the lowest bid wins and there is little time to check reputation, quality, consistency of shippers

  • Is the chartered company a legal entity?

  • Are ship ports of call along the route?

  • Is the route chartered the one actually travelled / sailed?

  • Port duration and fees

  • Timely adherence to schedule and departures

 

FRAUDULENT TRACKING WEB SITES – NEED FOR INDEPENDENT AND VERIFIABLE TRACKING

Sites have been created and improved over the years to add legitimacy for fraudsters to entrap their would-be victims. This is particularly true for containerized shipments, where convincing tracking websites highlight the degree of sophistication employed.

Two recent examples investigated by the Bureau illustrate how such online confirmations – whilst appearing convincing – cannot be always taken on face value and relied upon. These also further underline the need for independent verification of credit complying documents, particularly the bill of lading.

The first example covers what appears to be a valuable containerized shipment of copper cathodes from South America to the Far East. The Bs/L presented appeared on their face to be in order. The carrier’s website further attested that the cargoes had been loaded as per the two Bs/L referred.

  • MB’s investigations on the other hand contradicted what the website stated.

  • The physical carrier had quickly confirmed to the Bureau that the vessel was trading elsewhere. Whilst the vessel had bunkered at the discharge port, no cargo operations had been performed in respect of this transaction. A number of mistakes on the fake carrier website were also present with regards to the vessel and further highlights the potential problem with reliance on such resources for cargo confirmation.

  • The second example relates to the purported shipment of a spurious urea cargo from Malaysia to Vietnam.

  • On this occasion, the carrier’s website bore a remarkable resemblance to the legitimate website of one of the world’s largest liner companies. In fact, the website pages had been replicated and presented in such a manner that at first glance may lead users to unwittingly believe that they are dealing with the legitimate carrier’s website.

  • Corporate logos resembling those of the liner company were also present throughout the web pages. The liner company subsequently had the offending website taken down. By this time however the damage had already been done and the unsuspecting victim had already paid out a considerable amount to those behind the fraudulent website.

  • A degree of caution must be exercised by banks and others when seeking online confirmation for certain carrier websites. Unless the carrier is well known, and the origins of the website verified, total reliance on website confirmations should be avoided. Like legitimate businesses, fraudsters have been quick to appreciate the value of a well-presented website in furthering their “business”.

  • The Bureau is able to utilize a network of contacts and has built up expertise over the past 30 years to swiftly verify the authenticity of trade documents independently.

  • The above two cases are not the only examples where third party online confirmation markedly differs from the truth and the Bureau’s findings and responses to its banking members. We do not expect these to be the last.