London, UK & Swieqi, Malta – September 17, 2019: VAKT, the company re-imagining commodity post-trade processing underpinned by blockchain, announces a memorandum of understanding (MOU) with essDOCS, a leading enabler of paperless trade. The MOU focuses on the North-West European barge markets, smoothing the post-trade process for all parties involved in the transaction.
Previously, this market relied on a highly inefficient paper-based post-trade process. Trading parties would agree information to send on to the terminal, which would add its own information before sending on to barge captains to agree and sign for the product and quantities loaded or discharged from the vessel. This lengthy process results in several paper documents including the barge receipt, which when physically signed allowed the barge to sail and the seller to invoice the buyer.
The combined VAKT-essDOCS solution allows that process to be handled entirely digitally, speeding it up, reducing the scope for error and cutting costs. By working with VAKT, the key shipping documents (and data) can then be added to the immutable, tamper-proof blockchain platform, offering an easily-retrievable single source of truth for all parties involved in the transaction.
By collaborating, both companies are able to extend their market reach. For VAKT, this represents a step towards expanding its services to encompass the full physical energy trading ecosystem.
“We are delighted to partner with VAKT on bringing eDocs to the wider energy market,” said essDOCS CEO Alexander Goulandris. “While our initial focus is the North-West Europe tank barge market, where combined we have a critical mass of customers and an unrivalled digital post-trade offering, we are also exploring additional global markets where eDocs are key to full digitization.”
Etienne Amic, VAKT CEO, added: “At its core, VAKT is a multisided platform that allows the various parties in a physical energy transaction – traders, terminals, inspection companies, brokers, port agents, brokers and trade finance banks – to exchange information securely and seamlessly. Some information is transactional; some operational; and some of it represents the documents related to the transfer of the physical goods themselves. There are not that many well-conceived solutions allowing these documents to be passed safely in a digital form within current legal constraints.
“It was, therefore, a very natural step for us to enter into a collaboration with essDOCS, who have been developing solutions in this field for a number of years. We are delighted to offer the convenience of electronic barge receipts to our clients as part of our North West Europe Barges product. We are hopeful that VAKT and essDOCS will be able to roll out even more exciting products in the future.”
