Products: An independent platform for document of title and other original documents blockchain registration and transfer of ownership (bills of lading, letters of credit, etc) in global trade, built atop the neutral, public Ethereum blockchain.
Overview: In April 2020, CargoX Ltd, based in Ljubljana, Slovenia, launched the third generation of its CargoX Platform for Blockchain Document Transfer (BDT).
It is a platform for registering and transacting tokenised documents of title and other original documents. Where paper documents are typically transferred through courier services, delays, high cost of transfer, and sometimes demurrage costs and damages in cases where documents were tampered with, are common risks. CargoX uses military-grade encryption and the neutral, public Ethereum blockchain. Records on blockchain are immutable, undisputable, transparent, and auditable, with the highest levels of business confidentiality and privacy available.
CargoX is integrated within the Port Community System (PCS 1x) of the Indian Ports Association (IPA), under the Government of India, a connection which started at the outbreak of the Covid-19 pandemic. Other early adopters include: G2 Ocean, a major break bulk shipping company; Manuchar, a global trading, logistics and distribution company; and Fracht AG, a Swiss special cargo shipping company. It also connects with Contour, the global trade finance platform.
In April 2021, CargoX announced its appointment as a strategic partner with Misr Technology Systems (MTS). The partnership was in response to mandatory Advance Cargo Information (ACI) declarations for all inbound cargo being imposed by the Egyptian Customs Authorities, starting on 1 July 2021. The ACI process is managed through the country’s National Single Window for Foreign Trade platform (NAFEZA), built by MTS, with CargoX appointed as the authorised gateway for blockchain document transfer, covering ACI declaration envelopes, bills of lading and multiple other original documentation requirements.
In addition, CargoX also collaborates with the Digital Container Shipping Association (DCSA), is an observer within the EU’s Digital Transport and Logistics Forum (DTLF), a member of the International Association for Trusted Blockchain Applications (INATBA), and a contributor to the World Economic Forum’s Blockchain Toolkit. It also closely follows the UNCITRAL Model Law on Electronic Transferable Records (MLETR) postulates and the ICC UCP600 global rules.
The CargoX platform is approved by the International Group of Protection and Indemnity Clubs (IGP&I), which insure 90% of the world’s ocean-going cargo tonnage and include 22 of the leading 25 global cargo insurers.
Clients: Hundreds of users in companies and agencies in global shipping, trade, finance, manufacturing, energy, services, regulatory bodies and governmental agencies
Active region(s): Europe, Asia, North America, South America, Africa
Partners: G2 Ocean, Manuchar, Portall (Indian Port Association, Government of India), Contour, Fracht AG, CDM Software Solutions, Global Value Network, GCA, DBA Group, RoadLaunch, dexFreight, Globalink, Freightalia, Ocean X, ConsolFreight, MakerDAO and MTS.
Funding: CargoX completed an Angel funding round on 3 July 2019. In February 2018 it raised $7m in just seven minutes in an initial coin offering of its Ethereum-based CXO Tokens. Massively over its pre-set funding goals, it received demand from over 10,000 contributors, representing 95 different countries.
Ownership: Privately owned.
Elevator pitch: “The CargoX Platform is a blockchain equivalent of a courier service for transferring ownership of original documents of title in shipping and adjacent industries. It is an independent, public, and neutral blockchain-based document transfer solution which saves cost, reduces risk, and delivers documents in seconds. In 2020 it became only the sixth platform for electronic bill of lading transfer, approved by the prestigious IGP&I group of insurers. The CargoX Platform provides global, neutral blockchain document transaction capabilities, military-grade encryption, confidentiality, and auditability for instantly and indisputably transacting ownership of documents of title.”
Email: Igor Dragar
Phone: +386 41 721 474
TMI View: While the enthusiasm of investors reaffirms the viability of CargoX’s offering, its most notable selling point is the work it has done to connect with the key bodies, authorities and players in the trade space. Impressive for such a young company.
Verdict: Huge potential to finally lift the curse of paper from trade processes.