Archives For e-commerce

TEU Token

The creators of a new industry-specific digital currency that shippers can use to book ocean shipments say so-called “cryptocurrency” could help reduce carrier overbooking and shipper no-shows, which cost the industry some $23 billion annually.

The Hong Kong-based 300 Cubits recently introduced the TEU, not the container unit but rather a digital dollar that replaces traditional currencies as the deposit for shipment bookings, providing greater visibility to the booking process and allowing users to penalize bad behaviour. Whereas other tech startups have introduced digital management platforms to achieve the same goals, 300Cubits’ founders say they’re offering something different: not a place for transaction, but a means of transaction.

The company introduced the new TEU crypto currency to the market, putting some up for sale and giving others away to container lines and shippers “who actively promote the tokens for early adoption.” The TEU tokens are blockchain-based, which means they are tethered to a decentralized, distributed digital ledger used to record transactions across many computers so that the record cannot be altered retroactively.

Blockchain is a largely back-end technology, which means there’s very little change for the user, both shipper and carrier, according to Johnson Leung, a longtime shipping finance analyst formerly with Jefferies who founded 300Cubits with his partner Jonathan Lee.

“The biggest change is the acceptance of TEU tokens as a booking deposit, which is a more commercial decision than a technical call,” Leung told, “We do not plan on a substantial change in terms of user interface experience other than having one more option for the user to choose whether to use TEU tokens and the amount to put it before the shipper clicks on the book button.”

The tokens were named TEU to honor, in a way, the classical unit of measurement for container shipping, said Leung.

“TEU is a kind of a classical unit for container shipping that is getting less and less used,” Leung said. “We just think that the people in the industry would appreciate the name as TEU when naming something that could be the money for the industry.”

In an era marked by the buzzword “disruption,” Leung was clear that TEU tokens are not disrupting any existing system or process in the container shipping industry. TEU tokens are like an industry-specific bitcoin, another blockchain-based cryptocurrency. Put simply, Leung said, “We play part of what the dollar does today in container shipping.”

According to a white paper prepared by the company, once TEU tokens are used to book shipment their value could be lost if a customer does not turn up with cargo or a carrier does not load cargo according to a confirmed booking.

Trust, or lack thereof, is the biggest pain point in the container shipping industry, according to 300 Cubits.

“Unlike ticket booking in airlines, customers in container shipping do not bear any consequence for not showing up for bookings. Industry people complain the lack of trust between liners and customers,” the company said in a statement. The TEU token can change that.

While it is aimed at tackling overbookings and no-shows and providing greater visibility into the container shipping industry, 300Cubits should not be confused with other tech firms attempting to accomplish the same feat through different avenues. Leung’s company only provides the means of transaction. It does not provide the actual space for where carriers and shippers can transact, like the New York Shipping Exchange, an online portal through which carrier cargo space can be booked and which also monitors whether the booking is fulfilled by shipper and carrier.

According to Leung, the container shipping industry is a $150 billion industry that has been in “constant distress” since the economic crisis of 2008. Subtle technological innovations, like digital currencies and digital marketplaces to use them, are going to be the means to ease that volatility.

Frequently Asked Questions regarding TEU – 300cubits.tech

300Cubits White Paper – 300cubits.tech

Source: www.dailyshippingtimes.com, 3 August 2017.

Kunio Mikuriya - Hindu Times

The Hindu Times reports that the World Customs Organization (WCO) will soon bring out guidelines on ‘cross-border e-commerce’, which will focus on preventing illegal trade as well as addressing the challenges stemming from the ‘digital divide’, according to the WCO Secretary General Kunio Mikuriya.

In an interview to The Hindu on his recent India trip, Mr. Mikuriya said, “We are developing guidelines on e-commerce to see how best Customs can facilitate legitimate trade through that route.” He added, “We [the WCO] will address issues related to digital divide by looking into what is blocking e-commerce trade, and what kind of enabling environment is needed to support developing countries so that they benefit more from e-commerce.”

Terming e-commerce as a “game changer” in global trade that is benefiting small firms and consumers, he said the new guidelines would, however, include provisions to prevent illegal trade and illicit financial flows. This would be ensured through measures that would help strengthen information exchange between Customs administrations of countries as well as collaboration with other government agencies.

The WCO has a Working Group on e-Commerce and four sub-groups. To develop guidelines on cross-border e-commerce, the work packages identified are: ‘trade facilitation and simplification of procedures’, ‘safety and security’, ‘revenue collection’, and ‘measurement and analysis’. According to the UN body ‘UNCTAD’, the value of online trade jumped from $16 trillion to $22 trillion between 2013 and 2015.

“The continuous increase in online trading has raised questions regarding regulation, consumer protection, revenue collection and national security,” according to the WCO’s ‘Study Report on Cross-Border E-Commerce’ (March 2017). “These questions cannot be dealt with individually, but require a common, broad approach by the international Customs community, together with all relevant stakeholders as a whole.”

The WCO said more sophisticated equipment was needed to combat illicit trading through low-value shipments in the postal, express and cargo streams.

“Pre-arrival information on the consignment and the consignee could be of great importance in detecting and intercepting illicit trade. In addition, the improvement of non-intrusive inspection equipment and an increase in the number of trained staff could help to enhance the detection rate of illicit goods,” it said.

In an article on e-commerce, the WCO’s Director of Compliance and Facilitation Ana Hinojosa pointed out that in many countries, there were de minimisthresholds that allow low-value packages to enter a country with little or no duties or taxes, and with much more simplified procedures.

“This has led to clever manipulations by either the shipper or the consumer to avoid the extra charges by splitting invoices, undervaluing the invoices or mis-declaring the items altogether,” wrote Ms. Hinojosa. Another type of manipulation used was to classify the item as something else or claiming a different country of origin for the product, to take advantage of better duty or tax rates, the WCO official said, adding that these distortions had had an impact on many countries’ revenue collection volumes. Therefore, “some countries… are re-evaluating their established thresholds due to the significant implications that the changes brought about by these growing volumes of low-value small packages are having on their fiscal revenues,” observed Ms. Hinojosa. Source: The Hindu, 2 August 2017.