Tag: transportation

Will blockchain lead to a new maritime revolution?

blockchain

Introduction

The name may seem odd, but it is currently the subject of several discussions in the logistics sector. The blockchain could revolutionize operation management in several areas, including transport and logistics. Given its growing popularity, many are talking about a new internet revolution.

Napster, and later LimeWire, pioneers of music file sharing services already use the technology. Bitcoin is another example. Because digital money is also based on peer-to-peer distribution, exchanges are made directly between individuals as it is the case for paper money.

There are many advantages for using blockchain technology and this is why several large transport projects are now in the experimental phase. The results of these tests will give us more precise information on this subject.

1-Main blockchain’s characteristics

While most computer systems are built as client-server systems, peer to peer directly distributes data to all users of a network without intermediate servers. The different components of the network interact, but without hierarchical structure, making the management of this network autonomous. It is the duplication of data to all members of the network that eliminates the need for centralized system.

The blocks

Blockchain is in fact an application of a peer-to-peer exchange system which integrates added value services. These transactional services are called “intelligent contracts”. They are directives for conditional execution of certain tasks and are incorporated in blocks of instructions.

The process

The process is as follows. After registering recent transactions, a new block is generated, new transactions are validated by consensus of network partners and then added to a long string of previously created blocks.

The ledger

All blocks are registered in ledger that is distributed in the network. Content is encrypted and accessible by members, but can not be edited or deleted. This guarantees the authenticity and security of the network and Lire la suite

December 2016 Flags of convenience

Flags of convenience

THE CURRENT SITUATION

A flag of convenience is the flag of a vessel for which the actual property and control are located in a country other than that of the flag under which it is registered. For the owners of these vessels, the benefits are numerous,[1] including in the field of taxation, of security or labor law.

It is a phenomenon related to globalization. In 2015, they represented 71% of the total tonnage of the merchant navy. [][2] The world fleet operated under 152 pavilions. Three of these pavilions, Panama, Liberia and Marshall Islands accounted for 42.8% of the total capacity; either, 710 million tonnes (Mt) and 12 000 flags of some 50 000 vessels navigating the oceans. Panama dominates with 20.7% of world tonnage with[3] 343 Mt and 6 745 ships. Followed by Liberia with 1990 Mt and 2 996 ships and Marshall Islands with 168.6 Mt and 2 345 ships.[4]

None of those countries are among the major owners. The real and principal owners are Greece, Japan , China and Germany, which accounted in 2015 a capacity of 864 Mt and 16 752 vessels. Greece is largest owner with 308 Mt and 4 252 ships, mainly of bulk carriers and oil tankers. Japan comes in second with 242 Mt and 4135 Ships and China with 190 Mt and the 4720 ships.  [5]

MARKET FAILURE

This disproportion between the ship’s country of registration  and of countries owners is symptomatic of a market which is not efficient (Market Failure ). Flags of convenience and tax havens have no economic impact to added value of services, products or the development of markets.

It is a vicious circle, because the oligopolistic structure of the industry encourages imitation in order to protect market shares; the initiative of one will … Lire la suite