Benefits for the bunker industry in adopting blockchain technology for dispute resolution

The bunker industry has faced negative perception to their trust and credibility in recent times. This is further compounded by the need for the industry to answer new challenges to meet the requirement of the International Maritime Organization 2020. The aim of this work is to illustrate how blockchain technology may be adopted for aiding in bunker dispute resolution.

To demonstrate how blockchain may aid in disputes within the bunker industry, this paper first examines the existing bunker supply process, which involves the formation of contracts under English law, the Bunker Delivery Notes, the different types of disputes that may arise during a bunker transaction and the methods of dispute resolution utilised by the industry. Furthermore, the current literature in relation to blockchain technology and blockchain smart contracts is examined. Finally, interviews and surveys within the industry have been conducted to identify the benefits and challenges in adopting blockchain technology.

The research found that blockchains may benefit the bunker supply chain offering the effective resolution of bunker quality disputes. Furthermore, blockchains may also serve as a verification tool for electronic bunker delivery notes, which may aid quality and quantity bunker disputes as well as compliance with the new International Maritime Organisation 2020 requirements. As a result, despite the research having shown blockchain to be situationally dependent and having an element of legal uncertainty, blockchain does offer a solution to aid in bunker disputes and for improving the trust and credibility within the bunker industry.