Container shipping blockchain, the Global Shipping Business Network (GSBN), has partnered with Singapore’s Contour, a blockchain trade finance platform. The alliance aims to enable efficient financing for shipped goods.
Hong Kong-headquartered GSBN is backed by major players in the shipping industry, including container shippers China’s COSCO and Hapag Lloyd, and port operators PSA and Hutchison Ports. Contour is funded by nine global banks, including BNP Paribas, Citi, HSBC, ING, and Standard Chartered.
Exporting goods can be a risky process. Once the goods are loaded on a container ship, the seller loses control. Hence frequently, exporters require Letters of Credit Letter of Credit (LC) in which the buyer’s bank guarantees that the buyer will pay for the content in the shipping container at the agreed time. If the buyer is unable to complete the payment, the LC bank will cover the costs.
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