5 - Shipping, Distributed Ledgers and Private Maritime Law

Summary

This chapter discusses the possible impact of blockchain or distributed ledger technology on private maritime law in the near to mid future. It suggests that tamperproof logs are likely to be relevant in four areas. These are (1) shipping documentation (especially negotiable documents of title); (2) payment in connection with letters of credit governed by the eUCP 2.0 and similar transactions; (3) cargo care and monitoring, especially in connection with claims between buyers and sellers, cargo claims against carriers, and possibly dangerous cargo suits against shippers; and (4) the monitoring of vessels themselves with a view to establishing the cause of casualties, a matter relevant in particular to charter disputes, insurance and collision claims. In all of these areas the use of distributed ledgers is likely to give rise to substantial savings in evidence-gathering and litigation costs, leading to the smoother and more efficient handling of claims.