The privacy barrier for blockchain in logistics : first lessons from the Port of Hamburg

Abstract

Blockchain technology is associated with greatly beneficial applications for supply chain and logistics (SC&L), two of which are to trace goods across many actors, and to decentralize asset transfers without needing an intermediary. As a first use-case, actors from the Port of Hamburg are planning to implement blockchain to improve the sea freight container release by providing a common data platform for sea freight carriers, terminals, truck companies, and freight forwarders. Currently, releasing containers from the port’s terminals to trucks requires proof of ownership for the recipient to take custody. In practice, this proof passes through many hands causing duplication of information flow and ownership evidence. We conducted workshops and short interviews with experts providing first-hand insight into the use-case. Using blockchain in the process provides improvements such as traceable proof of ownership. The technology also faces barriers, with privacy concerns as one of the most prominent obstacles. A decentralized system could lead to business networks and company information being disclosed through data triangulation. We argue that privacy is a vital design consideration that affects the use of blockchain in SC&L generally.