On April 2, Sinochem Energy Technology a Chinese based petrochemical company sent a shipment from Quanzhou, China to Singapore.
This is claimed to be the first time that blockchain applications have been applied to all key participants in the commodity trading process.
This past December the same company performed a simulated test by carrying out its first crude oil blockchain import transaction. At that time, the company stated that the trial was a practical step for the blockchain technology to be applied in China’s energy and petrochemical industry.
Sinochem Group also stated that:
the data analysis of the effect of the simulated transaction shows that digital bills of lading and smart contracts can significantly enhance the execution efficiency of crude oil transactions and optimize 20% to 30% of the financing costs.
The company seems to believe that the Chinese economy can get more trust on a global scale from the transparency that comes from using blockchain solutions.
In January of this year, The US and China also completed the world’s first blockchain based agricultural trade. The transaction involved a a shipment of US soybeans to China in which the sales contract, letter of credit and certificates were all stored on the ETC blockchain platform.
According to the companies involved with that trade, it resulted in a substantial saving by increasing the speed 5 fold from standard document processing. The companies involved were Louis Dreyfus Co, Shandong Bohi Industry Co, ING, Societe Generale and ABN Amro.