Improving shipping contracts with the use of emerging technologies

A set of contracts guides every movement of cargo from one point to another. In this thesis, we focus on the contract between the charterer and the ship-owner in the liquid bulk ocean-shipping market. The contracting process begins with the two parties finding each other suitable and ends with one party being compensated in compliance with the terms and conditions of the contract for meeting a set of considerations. The question we answer is how emerging technologies, primarily Blockchain, can be used to make this process more efficient in terms of time and cost. Our research shows that while there are a considerable cost and time savings possible for certain aspects of the contracting process, there are some problem areas, such as the negotiations, that cannot be solved with the help of existing technology. We also conclude that the proposed solution needs to offer an end-to-end contract and document management tool rather than just being an improvement for one particular step in the process. An industry-wide consortium led Blockchain-based solution has potential to find wide acceptability and impact in terms of increased efficiency.

Department dc:contributor.department

Massachusetts Institute of Technology. Supply Chain Management Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2018

Author dc:creator

• Harshvardhan, M. Eng. Massachusetts Institute of Technology

Advisor dc:contributor.advisor

• Chris Caplice.

• Supply Chain Management Program.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/117922

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/117922