Tesla is helping Chinese state-owned COSCO Shipping digitize its vast shipping data. COSCO has agreed to share the shipping data with Tesla so that the electric vehicle maker can test the system at the Chinese company’s Shanghai port.
“We will promote the digitization of shipping,” said COSCO Shipping Holdings Chairman Xu Lirong. Nikkei Asia. “We have implemented a system to exchange shipment data in real time, using blockchain technology.”
Xu explained that international ports and logistics networks have lost their efficiency since the pandemic, as governments adopted stricter measures to prevent the rise in coronavirus infections. COSCO had the world’s third largest container ship fleet by the end of 2020 by increasing its shipping capacity to avoid the adverse effects of the pandemic. The company reported net profit of $ 1.55 billion in 2020, up 47% from the previous year.
Last week, Elon Musk hinted at issues with the global commodity supply chain. Reports from the Institute for Supply Management (ISM) and IHS Markit have revealed that the manufacturing sector is booming, but supply chain issues have hampered growth.
“Record delivery times, large-scale shortages of essential raw materials, rising raw material prices and difficulties in transporting products continue to affect all segments of the manufacturing economy,” noted Timothy Fiore, Chairman of the ISM Manufacturing Company Inquiry Committee.
Company executives have had to make tough calls as the global supply chain recovers from the pandemic. For example, Tesla has gradually increased the price of its vehicles over the past few months and removed some features from the car that could lower costs.
COSCO gave Tesla the system it was using on a trial basis at a port in Shanghai. The system allowed employees to receive documents and other materials without touching them. Tesla’s work with COSCO shows automaker EV’s determination to improve the global supply chain and be part of the solution.
Supply chain disruption during manufacturing boom in 2021 by Maria Merano on Scribd
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