Blockchain Technology and Sustainable Maritime Supply Chains: Contributions and Critical Success Factors

Abstract

Sustainable maritime supply chains are a network of maritime firms focusing on improving the benefits of their activities to people and the planet while ensuring long-term financial stability (Bernacki, 2021; Altarriba et al., 2022). Sustainability issues have become essential in maritime supply chains to address the alarming increase in global environmental pollution (Chan, 2022), excessive reliance on natural resources, child labour and human errors, unfair wages and salaries and corruption (Balci & Surucu-Balci, 2021; Difrancesco et al., 2022). Sustainability in maritime supply chains can generate several benefits, including enhanced reputation, satisfying international regulations and local regulatory regimes to avoid their associated fines, improving long-term profitability (Jozef et al., 2019), and ultimately safeguarding our planet (Yuen et al., 2019). Maritime supply chains involve complex partners, creating mistrust among partners, an ineffective flow of information, slow document processing, and bribery and piracy issues undermining efforts toward maritime sustainability. In 2010, re-routing of maritime shipping resulting from piracy alone cost between USD 7 billion and 12 billion (Sandkamp et al., 2022). In Port of Maputo, Mozambique, bribery constitutes a 129% increase in total port costs for a standard 20 feet container (Sequeira & Djankov, 2014). Blockchain technology has been identified to offer potential solutions to the above challenges of maritime supply chains in practising sustainability (Esmaeilian et al., 2020). Blockchain is a digitalised peer-to-peer network where data is recorded and transferred between participants rather than central storage (Papathanasiou et al., 2020). Blockchain technology can generate a high degree of trust, accuracy and transparency, and real-time tracking of products, data, owners, and actions taken at any stage of the supply chain (Pu & Lam, 2021). Blockchain technology is gaining increasing attention among maritime supply chains. For instance, IBM and Maersk have collaborated and implemented blockchain-based supply chains for their container shipping business by digitising and tracking all their containers. In 2017, 14 Japanese maritime firms, including NYK and MOL, announced an alliance to build a blockchain-based trade data-sharing platform. As of July 2021, the website of Tradelens, one of the major blockchain solution providers, displayed 285 ecosystem members, including terminals, ocean carriers, intermodal providers, and inland depots (Balci & Surucu-Balci, 2021). However, despite the growing popularity of blockchain among maritime supply chains, more is needed to know about its contribution toward sustainable maritime supply chains. Therefore, this study elaborates on the critical success factors of blockchain technology and its important role in achieving sustainability goals across maritime supply chains.

Introduction and background Sustainable maritime supply chains are a network of maritime firms focusing on improving the benefits of their activities to people and the planet while ensuring long-term financial stability (Bernacki, 2021; Altarriba et al., 2022). Sustainability issues have become essential in maritime supply chains to address the alarming increase in global environmental pollution (Chan, 2022), excessive reliance on natural resources, child labour and human errors, unfair wages and salaries and corruption (Balci & Surucu-Balci, 2021; Difrancesco et al., 2022). Sustainability in maritime supply chains can generate several benefits, including enhanced reputation, satisfying international regulations and local regulatory regimes to avoid their associated fines, improving long-term profitability (Jozef et al., 2019), and ultimately safeguarding our planet (Yuen et al., 2019). Maritime supply chains involve complex partners, creating mistrust among partners, an ineffective flow of information, slow document processing, and bribery and piracy issues undermining efforts toward maritime sustainability. In 2010, re-routing of maritime shipping resulting from piracy alone cost between USD 7 billion and 12 billion (Sandkamp et al., 2022). In Port of Maputo, Mozambique, bribery constitutes a 129% increase in total port costs for a standard 20 feet container (Sequeira & Djankov, 2014). Blockchain technology has been identified to offer potential solutions to the above challenges of maritime supply chains in practising sustainability (Esmaeilian et al., 2020). Blockchain is a digitalised peer-to-peer network where data is recorded and transferred between participants rather than central storage (Papathanasiou et al., 2020). Blockchain technology can generate a high degree of trust, accuracy and transparency, and real-time tracking of products, data, owners, and actions taken at any stage of the supply chain (Pu & Lam, 2021). Blockchain technology is gaining increasing attention among maritime supply chains. For instance, IBM and Maersk have collaborated and implemented blockchain-based supply chains for their container shipping business by digitising and tracking all their containers. In 2017, 14 Japanese maritime firms, including NYK and MOL, announced an alliance to build a blockchain-based trade data-sharing platform. As of July 2021, the website of Tradelens, one of the major blockchain solution providers, displayed 285 ecosystem members, including terminals, ocean carriers, intermodal providers, and inland depots (Balci & Surucu-Balci, 2021). However, despite the growing popularity of blockchain among maritime supply chains, more is needed to know about its contribution toward sustainable maritime supply chains. Therefore, this study elaborates on the critical success factors of blockchain technology and its important role in achieving sustainability goals across maritime supply chains.