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300Cubits the smart blockchain solution to the $23 Billion pain point in container shipping

Prerana Sarkar



Source: 300Cubits

The launch of 300Cubits, a venture tackling the No Show/Rolling pain point in container shipping industry has stirred up debate on the viability of each solution to the same pain point. A few days ago, suggestion from a supporter of 300cubits stated that there is no other solution for No Show/Rolling triggered a response from a supporter of NYSHEx in the same Telegram group. A shipping online magazine Supply Chain Drive also wrote extensively about the comparison of the two solutions.

 No Show and Rolling are basically the same pain point, which originates in the lack of commitment in the shipment booking process. No Show happens when a shipping customer (shipper) books a shipping slot but does not show up with cargo to use the booked slot. Rolling happens when a container liner confirmed a booking but does not load the cargo according to the booking, usually due to overbooking.

In the current process, the shippers do not need to place a deposit, the liners have to overbook to cover the potential No Show. Some academics in New Jersey Institute of Technology estimated that the No Show/Rolling cost the entire industry $23 billion a year including the lost income for the liners, inventory costs and rerouting costs for the shippers.

 There are many initiatives taken by the industry to try to fix this problem such as Maersk and Cosco’s cash deposit proposition, OOCL’s no-show penalty, NYSHEx’s cash deposit and bank guarantee, and 300cubits’ cryptocurrency – TEU tokens.

In general, we can separate them as the fiat currency deposit and cryptocurrency deposit. The liners, of course, prefer fiat currency based booking deposit. They tend to prefer a deposit amount as 10-30% of the freight payment.

Those fiat currency based solutions just have not been able to gain much traction with the customers. NYSHEx, for example, claims to have had 50% liners on board their system. But the NYSHEx platform as of now only covers the US export, which may be the last market segment people need to worry about shipment space in the container shipping world.

Raghav Madhavan, Head Logistics at Cochin Maritime says,

“I usually stay far away from anything to do with cryptocurrencies or ICOs but the TEU token really seems revolutionary that could change the face of the shipping industry. They have a good future and good tech behind them, I hope they do well.”

However, the shipment that comes with a booking deposit in any platform may be less than 0.1%. So one could really say quantitatively there is zero booking that comes with booking deposit. NYSHEx has been launched for over 2 years and its system went live last year. While we applaud that 50% of the liner capacity participate in NYSHEx’s booking platform, it begs the questions on why the other 50% of the liners are not participating. One would believe 100% of the liners would naturally support fiat currency based booking deposit. Moreover, the participation from the shippers is obviously lacking. 

 The challenge of fiat currency based booking deposits is the capital and cost burdens that these solutions place on the shippers. The shippers are mostly retailers which operate on a negative working capital model, which means these shippers’ suppliers usually fund these shippers’ operation. If the container liners ask the shippers to pay a portion of the freight up front as deposits, this goes against the shippers’ core operating strategy.

 300cubits’ TEU tokens are programmed out of computer system. The container shipping industry could have these TEU tokens for free and use these same tokens to pay for services in 300cubits’ platform, as part of 300cubits’ market entry strategy. The crypto solution is far more appealing to the shippers cost wise.

The 300cubits model

The 300cubits model

Marketing cryptocurrency toward the liners could be much harder than marketing fiat currency based solution as suggested by an American Shipper. The idea is too new for the liner.

However, things seem to have turned the corner by the end of last year that the liners become more active in terms of picking up access to test 300cubits’ solution. Some shippers even come out to openly support the use of TEU tokens as booking deposit as per a recent news release from 300cubits’.

300cubits’s social media channel has seen dramatic growth in followings in the recent weeks. A number of the followers in their Telegram group has gone from just a few hundreds to 4,000 in a week.

300cubits will start its ICO on 15th of March and launch its system on 15 June. Interesting time for container shipping industry. Interested parties as shippers or tokens buyers could sign up on their website here:

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Prerana Sarkar is a part of AMBCrypto's News Reporting Team from January 2018. She is a Journalism major from Mount Carmel with two years of writing experience in Bitcoin and Blockchain related articles. Prerana does not hold any value in cryptocurrency or its projects

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1 Comment

1 Comment

  1. ana Chavchanidze

    February 22, 2018 at 1:23 PM

    15 MAR 2018 ICO START DATE. very great project

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