Blockchain: overrated hype or game changer?

Dennis Dortland, Innovation Consultant at Portbase, has been developing his in-depth understanding of the blockchain phenomenon for several years. In that time, he has seen a growing interest in this concept. The term ‘blockchain’ is often used to describe all manner of links and is seen by many as the holy grail, the solution for future cooperation and digitalisation of processes. Is this right?

“Blockchain can be described in several ways,” says Dortland. “It is a name for a combination of technologies that together enable new ways of collaboration. I realise that this is quite a philosophical and wide-ranging answer. As an example, you can describe blockchain as a cashbook, but a very special cashbook. This is because in a blockchain you manage this cashbook together with others. You do not need trusted parties such as banks to carry out this task. These are two descriptions you often hear. Besides this, you hear explanations of what blockchain could deliver, like disruption and transformation. According to many opinions, in 20 years’ time the world will look very different. That is true in part, but for another part absolutely not.”

Technology push or business problem solution?

Dortland continues: “From a technological perspective, the blockchain concept offers many opportunities through a combination of blockchain aspects – i.e., it is distributed and data cannot be modified, giving you the option of deploying of smart contracts. Blockchain offers powerful elements, but you should not apply blockchain when you do not need those elements. This is the difference between a technological push and focusing on which business problems you actually want to solve, which new business models you can create and what kind of new ways of cooperation can emerge. After that, you simply look at the choice of technology and ask yourself: ‘Would blockchain be a suitable candidate?’

“These days we often hear ‘we must do something with blockchain’. People look at existing processes where data is exchanged and then these processes are plotted in a blockchain environment. In my opinion, that is not the right way to go forward. For example, look at the Dutch ports that are already extensively digitalised. In that case, use of blockchain technology does not add value. Processes are already largely mature, they are secure and reliable, and many organisations in the supply chain have the capability to handle those processes. Therefore, there is no immediate added value to be had from a blockchain solution. However, in other ports that are only now switching their processes to digital, it is worth considering blockchain as a solution.”

Added value of blockchain

Dortland is not saying that he sees no added value for blockchain in the processes in and around the Dutch ports. “You should look carefully at which processes might be suitable for a blockchain solution. I can imagine that some of the Portbase services that will be offered in the future will be blockchain enabled. It may be that such a service is completely blockchain operable or linked to a blockchain from the Port Community System. Examples might be linking payments with operational processes and banking processes, or strengthening the processes between the ports globally. I foresee that in future the local Dutch ecosystem, where the paperless port is already well organised, will be enriched with information from other ports in the world via blockchain technology. This is a way of following the goods from origin to final destination throughout the supply chain. Think about new cost accounting models for driving trucks in platoons. If you can capture the record of the trip in such a platoon with real-time apps (who leads the platoon, who is at the back, who joined halfway, etc.), you can prepare settlement of the costs (in terms of fuel consumption, as an example) in a blockchain. It even enables you to pay with a virtual currency, bitcoin, so that there is a virtual credit and, finally, it automatically determines which truck drives at the front and the back next time. This is all to distribute the fuel savings fairly. Do not forget that as well as fair share-out, at the same time savings in the administrative processes will be delivered, as everything is automated.”

Blockchain and ports

The physical and digital transport and logistics flows are already clear to see, says Dortland. But what can also be improved is the link with the financial flow. “Questions like ‘at what point will the bank credit be released’ and ‘at what time does the ownership transfer take place’ are, at present, confirmed in hardcopy contracts. The administrative process surrounding this can take weeks or sometimes months after the physical transport has actually taken place. By issuing load/discharge events or gate events from trustworthy systems like Port Community Systems via a blockchain solution, it will be possible via a smart contract to settle a payment automatically in line with the physical handling. Moreover, this enables you to ease any bottlenecks due to outstanding payments, because the cashflow continues. A trader has less outstanding cash tied up or bank deposits, which enables him to actively inject more working capital. Thus, faster linking of financial data to physical and linked logistic data flows will help to ensure the efficiency of the port. Blockchain seems an appropriate technology solution to connect these worlds.”

Next steps

Dortland foresees the next steps being particularly in cooperation with business partners. “Various initiatives are already visible. We are sure that there will be other solutions and other IT systems in 20 years’ time. Because the blockchain technology, there will be new initiatives in the field of data sharing whereby global data sharing will attain a substantial level. This will affect local activities between ports and within ports. Global data sharing initiatives will be leading and serve as the source for notifications for Customs, for example. This means that additional processes supported by blockchain technology need to cope with existing processes. And, as a result, new ways of cooperation will emerge. Existing links in the chain may be skipped or will change and there will be other new logistics solutions. However, you always need hubs where information comes together. There, platforms like the Port Community Systems continue to play a vital part in addressing the interests of the logistics industry, providing confidence and neutrality.”

So …. overrated hype or game changer? Dortland smiles: “I think it is positive that blockchain opens the discussion about data sharing. But I would emphasise that you should look at the different blockchain applications. Put the business problem first and see what solution is coming out of the discussion – the result may be a blockchain application, but it may also be resolved in other ways. List the main characteristics of the blockchain (secure, trusted, data cannot be modified, etc.), and in that case you are talking about the content. Put it this way – we need to reduce the hype around blockchain in order to gain its true value.”

Third series of improvements to Vessel Notification 2.0

A new series of quick wins is now available for you in Vessel Notification 2.0. These wins are practical improvements that we are implementing in close cooperation with the Harbour masters of Rotterdam and Amsterdam. During recent visits to agents, they compiled an inventory of areas for potential improvements to the digital notification process. In this third series, the following are now online for your benefit:

IMPROVEMENTS TO ‘VISIT OVERVIEW’ SCREEN
• Sort categories independently
In the ‘Visit overview’ screen, you can now sort each category of vessels (Expected, Arrived, Departed, Cancelled) independently as you see fit. For example: you can sort the category Expected alphabetically, put the Arrived vessels in order of CRN, etc.

• Actual berth and accompanying ETD displayed for each vessel
From now on, the actual berth and expected time of departure for each of your ships present in the port will be displayed in the Visit overview screen. In the event the vessel is en route, the next berth the ship is scheduled to occupy will be displayed. This will allow you to keep the expected times of departure (ETDs) up-to-date more easily, as well as to immediately see for which vessels you need to order a voyage.

IMPROVEMENTS TO ‘VISIT TO PORT AUTHORITY’ TASK
• Actual time of departure now listed along with berth details
From now on, along with the berth details of a vessel, the actual time of departure (ATD) will be visible as well. That way, you can be certain the ship has in fact departed the berth. This makes it easier for you to keep the order of berths up-to-date.

Note: Soon, we will make the actual times of departure visible to you in the berth overview as well.

Elimination of ‘TNK – Tank-container with IMO Residue’ document postponed

The elimination of the ‘TNK – Tank-container with IMO Residue’ document, which Customs announced would go into effect from 1 June 2017, has now been postponed by Customs until further notice. This means that, contrary to our previous communications, this document will still be available to you in our service Notification Export Documentation after 1 June. For the time being, you can continue to use the document to notify the export of your containers with residue as usual.

Customs’ earlier announcement of their intent to stop accepting the TNK document as of 1 June led to questions among many logistical service providers and tank hauliers. The matter was discussed extensively during a consultation between Customs at the Port of Rotterdam and representatives from the VRC, FENEX, VRTO and Portbase on 2 May. The result of this meeting is that Customs at the Port of Rotterdam will coordinate with officials at the European level, and then elaborate a new proposal on how to proceed. This proposal will be submitted to the relevant umbrella organisations and their members for the purpose of feedback. Consequently, it has been decided that use of the TNK document (as it currently exists) will continue to be permitted until further notice.

ECT Delta and Euromax now also connected to back-up service Road Planning

ECT Delta and Euromax are now also connected to the new, convenient back-up service for Road Planning. If there is an unexpected disruption to the regular Road Planning, the back-up will allow you to submit pre-notifications anyway – so you can get on with your work. Rotterdam World Gateway (RWG) was already able to use the back-up service. Other terminals will be connected as well at a later date.

Link for access and to request a password directly
You can access the back-up service for Road Planning through this link.
It will not be possible to use the back-up until the regular service has been offline for at least one hour. At any time, however, you can click on the same link to request a password for accessing the back-up. We recommend you do this immediately. That way, you’ll be able to use the back-up service right away when you need it.

How it works
In the back-up service, just like in the regular Road Planning, you will enter all the information you need to pre-notify your visit and container(s). You will then receive an e-mail containing the drop-off or pick-up details. Pre-notifications you submit via the back-up service are not visible in the PCS. In order to guarantee availability, the back-up service and PCS are completely independent of one another.

Don’t wait – request your password for the back-up service today.
That way, you will be optimally prepared.

Transport Logistic München

From May 9th until may 12th, Portbase will again attend the world’s leading trade fair for logistics, mobility, IT, and supply chain management: Transport Logistic München (TLM). You will find our Portbasers at both the Port of Rotterdam stand as the HollandPorts stand (Hal B3, 309/313/414). You are most invited to join us there. Hope to see you in Munich!

Second series of improvements to Vessel Notification 2.0

We have finished implementing a second series of improvements to Vessel Notification 2.0. These ‘quick wins’ are being realised in close cooperation with the port authorities of Rotterdam and Amsterdam as the owners of Vessel Notification 2.0. During recent visits to agents, they compiled an inventory of areas for potential improvements to the digital notification process. The new quick wins available to you online are:

• Submit ETA or first Entry in EU as you do in ENS Notification
• Only valid Customs office choices will be possible
• Date and time of Previous Ports will be automatically copied
to Security screen

IMPROVEMENTS TO ‘VISIT TO PORT AUTHORITY’ TASK
• Submit ETA or first Entry in EU as you do in ENS Notification
The field for ‘ETA of first entry in EU’ (date and time) has been renamed ‘ETA of first entry in EU reported as on ENS’. We have done this to make the difference between this field and the ‘ETA pilot station’ requested slightly higher up on the screen more obvious for you.

Which information should you enter?
In the field ‘ETA of first entry in EU reported as on ENS’, you will need to fill in the ETA as it is listed on the ENS declaration that was submitted before the container was loaded onto the ship in the port of loading.

An example:
• The ENS declaration indicates an ETA in Rotterdam on 20 March;
• During the trip, however, it becomes apparent that the ship’s ETA
will be 24 March instead;
• In Vessel Notification 2.0, in the field ‘ETA of first entry in EU
reported as on ENS’, you will still enter 20 March.

That way, the information in the ENS declaration will be the same as that in the Customs notification of expected arrival in the EU. This will allow Customs to match each cargo declaration to the appropriate vessel visit.

Additional verification
You will only complete the ‘ETA of first entry in EU reported as on ENS’ field if the last port visited by the vessel (immediately prior to arrival) was outside the EU. If the last port the vessel visited was inside the EU, you will leave the field blank. From now on, this information will be automatically verified in Vessel Notification 2.0. You will be notified if the field is not completed correctly, as described above.

• Only valid Customs office choices will be possible
In the section on ‘Next Ports’, for the ‘Customs office’ field, your choices will now be limited to a list of valid Entry offices for the country in question. This will prevent you from submitting an invalid entry in this field, which would cause Customs to reject your notification.

IMPROVEMENTS TO ‘SECURITY INFORMATION’ TASK
• Date and time of Previous Ports will be automatically
copied to Security screen
From now on, the arrival and departure data for the ‘Previous port’ that you entered in the ‘Visit to Port Authority’ task will be automatically copied to the ‘Previous port facility’ field within the ‘Security Information’ task. You will therefore only need to enter this arrival and departure information once.

Two changes to Notification Export Documentation

At the request of Customs, we will make two changes to the service Notification Export Documentation (NED) for you in the coming period:

• New RTR code for use during emergency NCTS procedure
• ‘TNK – Tank-container with IMO Residue’ document
will be eliminated

New RTR code for use during emergency NCTS procedure
From 1 May 2017, during those times when an emergency NCTS procedure is in effect, you will need to use the new code ‘RTR’ (Rotterdam Transit) when pre-notifying NCTS documents in NED. For ECS documents, you will use the familiar REX code during the emergency AGS procedure for export. This will allow Customs to distinguish between the various paper documents that are submitted to them by the terminals. The export process will proceed more smoothly as a result. The method used when emergency procedures are not in effect will remain unchanged. To summarise:

• Pre-notification of a T document in NED during the emergency
NCTS procedure:
– Code RTR (followed by the document number)
• Pre-notification of an export document in NED during the
emergency AGS export procedure:
– Code REX (followed by the EORI number of the notifier)

Customs will observe a transitional period from 1 May until 1 June 2017. After the latter date, using the code RTR during the emergency NCTS procedure will be mandatory.

‘TNK – Tank-container with IMO Residue’ document
will be eliminated
With effect from 1 June 2017, you will no longer be permitted to notify the export of tank-containers containing residue to Customs using the ‘TNK – Tank-container with IMO Residue’ document. This is a result of new European Customs legislation. The TNK document will be eliminated from our service Notification Export Documentation from the aforementioned date. After that, Customs will expect a declaration of export from you in connection with such tank-containers.

Upcoming improvements to Vessel Notification 2.0

To better serve you, in April and May we will be implementing improvements to Vessel Notification 2.0. We will do this in close cooperation – as the owners of Vessel Notification 2.0 – with the port authorities of Rotterdam and Amsterdam. During recent visits to agents, they compiled an inventory of areas for potential improvements to the digital notification process. This data serves as the basis for a series of quick wins, the first of which is already online for your benefit:

IMPROVEMENTS TO ‘VISIT TO PORT AUTHORITY’ TASK
• Time automatically filled in for ‘Next Ports’ and ‘Previous Ports’
• Select vessels more easily
• Vessel details synced automatically
• Field for ‘Different vessel name’ deleted

IMPROVEMENTS TO ‘SECURITY INFORMATION’ TASK
• Security screen now identical to official ISPS form
• ‘Security level’ filled in automatically
• Select ‘Previous port facilities’ more conveniently

IMPROVEMENTS TO ‘VISIT TO PORT AUTHORITY’ TASK
• Time automatically filled in for ‘Next Ports’ and ‘Previous Ports’
From now on, in the ‘Visit to Port Authority’ task, the times for your vessel’s arrival and departure in earlier and subsequent ports (’Previous Ports’ and ‘Next Ports’) will be set to a default time of ‘12:00’. That way, when you have no further specifics on these times, you can simply leave the fields as is.

• Select vessels more easily
When you begin typing the name of a vessel, the service will now show you the list of vessels, sorted by name. This will help you to find the right vessel more quickly. Because ships can sometimes have the same name, the IMO number will be listed after the name as well.

• Vessel details synced automatically
Now, any changes to vessel details made during a vessel visit in progress will be automatically forwarded to the authorities. This will allow your notifications to proceed even more smoothly than before.

• Field for ‘Different vessel name’ deleted
If the name of the vessel should happen to change during a visit, the new data will be synced automatically in Vessel Notification 2.0. The field marked ‘Different vessel name’ (under the menu item for ‘Other’) has therefore been deleted.

IMPROVEMENTS TO ‘SECURITY INFORMATION’ TASK
• Security screen now identical to official ISPS form
As of now, every field name in the ‘Security Information’ task is identical to that of the corresponding field on the official ISPS form. This makes it easier for you to see which information to enter in each field. We have also added help texts. These will be displayed when you click on the question mark icon.

• ‘Security level’ filled in automatically
From now on, ‘SL1’ will be automatically entered for you in the ‘Security level’ field. That means you will only need to edit the field in situations when the security level changes.

• Select ‘Previous port facilities’ more conveniently
Now, when it’s time to enter ‘Previous port facilities’, a list will be displayed for your benefit; the list will be sorted by code rather than name. Because you are usually supplied with this code in daily operations, this feature helps you select the right facilities more quickly.

Useful back-up service for Road Planning

In the event of an unexpected Road Planning fault, you can now use a useful back-up service to pre-notify and therefore continue working. Rotterdam World Gateway (RWG) is the first terminal for which you can use this back-up service. Other terminals will follow at a later date. Portbase aims to provide you with the best possible service at all times.

Niels Dekker, Public Affairs & Communications Manager at RWG, explains: “For us, this back-up service means that the service provided is becoming even more reliable. Not only can the operation simply continue in the event of a fault to the Port Community System, but road hauliers can still make appointments and pre-notify containers.”

Link for access and password requests
The Road Planning back-up service can be accessed through the following link.
This link can only be used from one hour after the regular service have gone offline. We recommend that you request a password in advance. This can be done at any time using the same link, and will allow you to use the back-up service straight away if necessary.

How it works
In the back-up service, you will need to enter all the necessary details to pre-notify your visit and container(s), just like in the regular Road Planning system. You will then receive an e-mail providing delivery and collection details. Pre-notifications submitted through the back-up service are not visible in the PCS. To guarantee availability, the back-up service is completely separated from the PCS.

Be prepared and request your password for the
back-up service today.

Notification Waste Disposal coming to Harlingen soon

Soon, agents in the port of Harlingen will be notifying the waste materials aboard sea-going vessels via Portbase. Once all parties have completed their connection to the service Notification Waste Disposal, the Harbour master intends to begin testing; he will also determine the date on which the service will become mandatory. The agents in the northern port are accustomed to submitting their vessel notifications using the Portbase service Vessel Notification 2.0. This vessel information is then reused whenever possible in the service Notification Waste Disposal.