300cubits, a Hong Kong-based blockchain startup, intends to introduce a cryptocurrency ‘TEU’ with a select group of container shipping lines and freight forwarders receiving the first crypto tokens, from 1 Feb 2018, on a first come first served basis to promote their use as shipping booking deposits. Other than this, 18 million TEU tokens will be sold to the public starting from March 15 to April 12. The company has set a June date for the cryptocurrency to go live.
The firm is in dialogue with 12 of the 14 top container liners as well as 8 of the top 15 freight forwarders regarding its cryptocurrency. The aim is to relieve industry pain points which occur when a customer makes a booking with a shipping line but does not show up with a container in due time. In order to safeguard against this, the liners in turn often overbook container space on their vessels, which in busy periods often translates into “cargo rolling” to the following voyages and customers with confirmed bookings not getting their cargo loaded onboard on time.
To counter this, 300cubits intends to have the TEU cryptocurrency allow the industry to reconstruct discipline for agreements. In the short term, TEU tokens could be used as a booking deposit to reduce the so-called ‘ghost bookings’ or ‘rollings’. Long term, they see TEU tokens providing better forecast and hedging tools against the volatility of the industry cycles. As for booking deposits, the TEU tokens’ value will be linked to the actual freight rate.
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