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Improving port supply chain through blockchain-based bills of lading: a quantitative approach and a case study

Author

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  • Clarissa Amico

    (Politecnico of Milan)

  • Roberto Cigolini

    (Politecnico of Milan)

Abstract

Blockchain technology supports business processes, and several streams of research are developing on its applications in supply chain management. This paper concerns the logistics activities that take place in a port, where a variety of actors operate, interacting through an exchange of mainly paper-based documents. The most important of these is the bill of lading; a legal document defining the terms of agreement between the seller and the buyer. The bill of lading is essential to enable the flow of freight in the port of destination, from the unloading of cargo to its destination. A correct bill of lading lifecycle allows smooth terminal operations, avoiding delays and slowdowns in freight handling. Research on the impact of using blockchain technology to manage the flow of information in a port is scant and mostly theoretical. This paper analyzes the issues regarding the transmission of a bill of lading and assesses the pursuant impact of blockchain technology on the internal operations of a container terminal. The impact of blockchain technology on the bill of lading lifecycle affects crucial issues of terminal management like the enhancement of trust among parties, security and visibility. Blockchain technology-based bills of lading, compared to electronic bills of lading, enhance privacy, security, trustworthiness and flexibility. Our research methodology is based on a discrete event simulation model, built on a real-life case of the port of Livorno, Italy, where three main areas are considered: berths, ship-to-shore cranes, and container storage yards. Simulation results show that blockchain technology reduces the average container lead time in the terminal—i.e., the time from berthing to loading on rail/truck for onward transport—by 3 to 4%, reducing the maximum container dwell-time at the yard by up to 30%, thus increasing, as a consequence, the utilization rate of the equipment.

Suggested Citation

  • Clarissa Amico & Roberto Cigolini, 2024. "Improving port supply chain through blockchain-based bills of lading: a quantitative approach and a case study," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(1), pages 74-104, March.
    • Handle: RePEc:pal:marecl:v:26:y:2024:i:1:d:10.1057_s41278-023-00256-y
    DOI: 10.1057/s41278-023-00256-y
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