300cubits, a Blockchain Shipping Pioneer, Gives up on Its TEU Token

300cubits, an early innovator in using blockchain for international container shipping, has pulled the plug on its TEU token, citing lack of business.

"Only a couple hundred containers have gone through the system, which, although may seems plenty among the shipping blockchain projects, is not sufficient to keep the system going commercially."

The TEU-a play on Twenty-foot Equivalent Unit, the standard unit of measure in container shipping-was issued in an initial coin offering in early 2018 and designated as the medium of exchange for the company's Booking Deposit Module.

Customers, who were given the tokens, would use the TEU to book container space with participating shippers.

It was expected that the TEU would have some value and thus solve booking problems that have plagued the container market.

Customers would be disinclined to cancel orders, and the shippers would be less likely to overbook their ships.

Sealand-the Florida-based Maersk Group company-Beijing-based Cosco, and Geneva-based MSC tested the TEU, according to the statement, and 300cubits was in discussion with a number of other major shippers.

300cubits will burn at least 75 percent of the TEU tokens and will continue to burn them as they are returned, according to the statement, and Hong Kong-based company will continue to pursue other blockchain-related opportunities.

Solutions for container booking no-shows, so-called downfalls, have been instituted by the shippers themselves and by the New York Shipping Exchange, which offers enforceable freight contracts on its platform.

Most notably, IBM and Maersk are developing TradeLens, a blockchain-based system that allows for the real-time sharing of shipping data between parties connected in a supply chain.