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  September 24th, 2018 | Written by

Kuehne + Nagel deploys blockchain technology for VGM Portal

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  • New VGM solution with hands-on experience with blockchain in an on-premise production environment.
  • Enhanced VGM solution has new features and improved transparency.
  • Kuehne + Nagel designed VGM solution to fulfill industry requirements of confidentiality and data privacy.

Kuehne + Nagel for the first time leverages the benefits of blockchain technology in a large scale operational environment with 800,000 transactions per month while upgrading its well-established VGM Portal. The enhanced solution provides shippers with new features that improve the ease of doing business as well as the degree of transparency on the verified gross mass (VGM) status of all customer shipments and the history of persisted information.

All information submitted via the portal is stored on-chain, which allows for using native blockchain interfaces for data exchange with third parties, removing the need for additional off-chain communication channels. Kuehne + Nagel designed the solution to strictly fulfill industry requirements of confidentiality and data privacy, adding to blockchain’s natural features of immutability and traceability.

“The list of promises related to the use of blockchain in the logistics industry is long, but actual real-world applications are hard to find,” said Martin Kolbe, Chief Information Officer Kuehne + Nagel International AG. “The Kuehne + Nagel VGM Portal solution jointly developed by our seafreight experts and our IT team allows us to get a true hands-on experience with blockchain technology in an on-premise production environment and with a high number of transactions. Our customers benefit from a tamper-proof solution for information exchange with third parties with improved efficiency and higher transparency. Kuehne + Nagel engages in a number of blockchain projects with customers, suppliers and governmental bodies addressing industry challenges in various domains, as the full potential of blockchain can only be exploited when collaboratively working together with business partners. Our involvement in a consortium engaged in the digitalization of bill of ladings for seafreight is the best example. Operating the VGM Portal on blockchain in an operational high volume environment delivers valuable learnings and expertise for the development of joint blockchain applications.”

The first version of the Kuehne + Nagel VGM Portal went live in 2016 to give shippers a convenient solution for filing their VGM declarations as being required for seafreight shipments in consequence of the International Convention for the Safety of Life at Sea (SOLAS). Now, the use of blockchain technology further facilitates data exchange between the different partners.