Exploring blockchain integration within the shipping industry : a legal analysis

Abstract

This dissertation seeks to explore how sophisticated technologies such as Distributed Ledger Technology (‘DLT’) can be implemented and used within different sectors of the international shipping industry. Moreover, the author will seek to analyse whether the current legal framework adequately caters to the use of such technologies, paying particular focus on the position under Maltese law. This research will endeavour to briefly explain blockchain technology and DLTs, whilst providing an overview of the legal framework governing this technology both internationally and domestically. Subsequently, the author will also examine the various applications of such technology within the shipping industry, primarily the use of blockchain-based BOLs and smart contracts will be delved into. Following this, a critical assessment will be made of the legal obstacles which could serve to obstruct the implementation of blockchain technology in shipping. The study will explore general legal issues arising from the use of blockchain, as well as more sector specific issues which arise in the shipping industry. This study seeks to underline the current fragmented legal framework, and shall assess those international efforts to date, such as the Model Law on Electronic Transferable Records (MLETR) to harmonise this technology, with particular focus on shipping operations. The research will end with the author’s views and recommendations on how a fully fledged system of blockchain within the shipping industry, free of any legal barriers, could possibly be achieved. In the author’s view, international cooperation is indispensable. It is submitted that only through international regulation, can legal certainty and long-term stability of this innovative technology be achieved.