ConsolFreight Releases New Proof of Concept That Promises to Advance the Role of Logistics Providers in Trade Finance
1 November 2019
This initiative is a perfect illustration of Tony Brown's panel discussion at our WOA Convention earlier this month: the physical and financial supply chain are moving closer.
Press Release from ConsolFreight:
BARCELONA, Spain, Oct. 30, 2019 /PRNewswire/ -- Today, ConsolFreight released its new Proof of Concept report "Trade Forward" at the IoT Solutions World Congress in Barcelona. The ambitious project has the support of Telefonica, who provided connectivity through Kite, their IoT connectivity platform. It also included the collaboration of key organizations such as EOS Dublin using EOSIO blockchain technology, the Florida Blockchain Foundation, and Anova Marine, which provided insurance coverage to the transported cargo.
The Proof of Concept aims to provide liquidity, create new revenue streams, and ultimately advance the role of freight forwarders in the Supply Chain. Trade Forward is a new business model of collaboration amongst insurance companies, financial institutions, and logistics providers. This model, where the freight forwarders are the centerpiece, brings the following benefits:
- SMEs financial inclusion
- Full oversight of trade asset movement
- Streamline data exchange between the multiple parties
- Risk mitigation and redistribution along the Supply Chain
- Optimized operational liquidity for exporters and importers
- Decreased paperwork and institutional bureaucracy
"Banks are short-sighted in determining and validating the value of the goods being financed. They have drawn a very distinctive line between Logistics and Financial institutions, where the value of the assets is entirely disconnected from the process. Thus, leaving an untapped market of unfulfilled credit demand estimated at $1.6 trillion," says ConsolFreight's CEO, Ernesto Vila.
This revolutionary test was carried out by a dedicated team of experts in blockchain, logistics, supply chain management, and finance. Members of the ConsolFreight ecosystem are conducting pilots along with companies like Telefonica and Anova Marine. These partnerships are allowing smaller players to get access to larger organization solutions, generating technological inclusion.
The first TradeForward shipment was handled by freight forwarder Tech Cargo in the region of North America. The following shipments will be carried out byto enable non-traditional trade finance in the African continent. Additional pilots in LATAM will be carried out by ADEKO Enterprises S.A., Globalog S.A., and Tree Logistics.
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ConsolFreight was founded in 2016. It is a collaborative platform that uses breakthrough technology such as blockchain and IoT to help improve the logistics and supply chain current processes. ConsolFreight works towards enhancing and better positioning the role of freight forwarders, helping them to grow their business and evolve with the current times. They achieve that by utilizing technology as an enabler in harnessing traditional freight forwarders with solutions that allow them to provide better customer experience, collaborate with others and compete against bigger players in the industry.