The international grain trade platform Covantis, co-founded by a group of global shippers, has launched its global blockchain shipping platform in time for the start of the Brazil season.
The project started in 2018, with founding members ADM, Bunge, Cargill and Louis Dreyfus Company, later joined by COFCO and Viterra. Covantis now expects hundreds of users from the 30 or so entities around the world that it has virtually trained and onboarded. The platform will now seek to enlarge its network of participating companies over future months and aims to recruit the majority of industry players active in global agricultural commodity trade flows.
Initial trading on the Covantis platform will cover the shipment and execution of bulk commodities such as corn and soybeans from Brazil to any worldwide destination. The tool aims to optimise export trade execution processes by connecting shippers, traders and charterers in the same digital environment.
Covantis says it will continue to invest in building new capabilities to increase value for its clients from origin to destination, creating a global network for the efficient execution of bulk commodity trade operations.
“Two years ago, we set out on a journey to transform a system of global trade that had changed very little for the last century,” notes Covantis chief executive Petya Sechanova, a former Cargill operations manager. “It’s been an exciting process as we advanced from identifying this crucial need; to working with industry participants across the supply chain to explore and understand the needs of the market; to building a secure and trusted digital network.
“Today, we’re proud to launch our industry-changing digital platform in time for the beginning of the Brazilian export season. We look forward to working with our partners to use this technology to enhance efficiencies and reduce operational risk in this first key market.”