Distributed ledger technology as a tool for environmental sustainability in the shipping industry

Abstract

In recent years, many industries have adopted technology and digital systems to automate, expedite and secure specific processes. Stakeholders in maritime transport continue to exchange physical documents in order to conduct business. The monitoring of supply chain goods, communication among employees, environmental sustainability and longevity control, along with time framing, all create challenges to many industries. Everyday onboard work, such as cargo operations, navigation and various types of inspections in shipping, still requires paper documents and logs that need to be signed (and stamped). The conversion of traditional paper contracts into smart contracts, which can be digitalized and read through automation, provides a new wave of collaboration between eco systems across the shipping industry. Various data collected and stored on board ships could be used for scientific purposes. Distributed ledger technology (DLT) could be used to collect all those data and improve shipping operations by process expediting. It could eliminate the need to fill in various documents and logs and make operations safer and more environmentally friendly. Information about various important procedures onboard ships could be shared among all interested stakeholders. This paper considers the possible application of distributed ledger technology as an aid for the control of overboard discharge of wastewater from commercial ships. The intended outcome is that it could help protect the environment by sending data to relevant stakeholders in real time, thus providing information regarding the best discharge areas. The use of a structured communal data transference would ensure a consistent and accurate way to transmit data to all interested parties, and would eliminate the need to fill in various paper forms and logs. Wastewater overboard discharges would be properly monitored, recorded and measured, as distributed ledger technology would prevent any possibility of illegal actions and falsification of documents, thus ensuring environmental sustainability.