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Since blockchain expands beyond cryptocurrency transactions, practitioners have extensively explored it (IBM, 2017). For example, information system (IS) researchers have studied the various applications of blockchain across many different fields, including finance, energy, supply chain, health, and media (Berdik et al., 2021), and many issues, including privacy and data management (Casino et al., 2019).
Such extensive research is due to blockchain’s “revolutionary” potential (Gomber et al., 2016). It provides innovative solutions to businesses with unprecedented trustworthiness, transparency, and traceability (Concensys, 2020). In supply chains, organizations incorporating blockchain technology can increase disintermediation, which means that suppliers can transact directly with customers, efficiently track products, assure data integrity, negate the need for reconciliations, and track products efficiently (Lacity, 2018).
Many studies consider logistics and supply chains as ideal scenarios, known as the current blockchain trends (Buthelezi et al., 2022) as blockchain can offer more benefits than the traditional approaches (Iansiti & Lakhani, 2017). Most importantly, authors argue this is the new technology that can address these challenges (Sultana et al., 2022). Costs would be reduced in the supply chain due to disintermediation, as blockchain eliminates agents’ or intermediaries’ requirements. The monetary settlements would also be automated to show that the conditions detailed in the smart contract are fulfilled, and the goods/services are delivered (Hughes et al., 2019). Hence, supply chains have received much attention for blockchain application research (Buthelezi et al., 2022).
Globally, almost 90% of the world’s goods are seaborne (International Chamber of Shipping, 2022). Hence, bulk maritime transportation plays an essential role in the worldwide economy (Transparency Market Research, 2020). However, the COVID-19 pandemic has affected global trade flows at an unprecedented speed and scale, primarily due to supply-chain actors’ inability to adapt rapidly (UNCTAD, 2021). Simply put, maritime shipping failed to meet the need for on-time, faster deliveries and the traceability and transparency of their shipments (Shou et al., 2021).
Moreover, transparency and traceability have recently become even more evident in global shipping supply chains following several disruptions, such as COVID-19 and empty container issues (Masudin et al., 2021). Issues of unreliable schedules, port congestion, no-shows, and rollovers have further complicated the shipping supply chain (Song, 2021). The challenge is the interaction between the cargo carriage from the suppliers to the receivers. Traditionally, these parties’ interactions have been governed by a “Charter Party” contract agreement. Typically, executing this type of contract involves three steps: (1) connecting and matching cargoes with ships, (2) negotiating with both charterers and shipowners, and (3) making calculations and payments.
Significant impediments in this process are that an agreement is signed only after mutual trust is formed, evidence that the obligations in a contract are met, and payment transfer obligations are secured through the banks. Unfortunately, the lack of trust between parties and this industry’s extremely high fragmentation (Song, 2021) drove up the coordination costs of international trade and ultimately impeded them (Li & Zhou, 2021; Bavassano et al., 2020).