Apr 25, 2022|

JD Opens the Industry’s First Digital Warehouse for Commodity Trade in Qingdao


by Doris Liu

A digital warehouse platform, the first of its kind in the international commodity trade, warehousing and circulation areas, was launched on April 22 in the coastal city of Qingdao, Shandong province, with support from JD Technology (or JDT), creating an ecosystem of digital warehousing, digital trade and digital finance.

JDT, the core platform of JD.com that provides external technology services, has accumulated leading comprehensive capabilities such as cloud computing, artificial intelligence, IoT and blockchain. By fully integrating digital intelligence technology with industrial practice, together with JD’s experience in supply-chain financial technology, JDT helped the bulk commodity industry realize industrial and financial digitalization, said Li Bo, a Vice President of JD.com and President of JDT’s financial technology unit.

Along with the launch of the platform, the model of turning a digital warehouse’s Bill of Lading (BOL) into warehouse receipt pledge financing was also put into practice for the first time. On April 20, 200 tons of rubber bulk goods sourced from Vietnam were stored in the digital warehouse after customs clearance. Through the digital warehouse platform, the warehouse side, the trader and the bank could the rubber goods, the goods’ owner and the warehouse in real time, and a loan financing of US$316,000 was issued to the goods’ owner on the second day.

Utilizing IoT technology and the digitization of cargo information as its core, the platform used in Qingdao’s free trade zone builds IoT monitoring and supervision solutions for overall management, warehouse scheduling and cargo safety.

For instance, high-definition monitoring cameras are deployed to capture the outline of the goods; storage, prohibited and dangerous areas are classified by the electronic fence so that an alarm will go off if the outline of the goods changes, or if restricted vehicles and people enter into such areas without permission; and high-sensitive sensors for temperature and humidity are set for certain goods that have strict requirements to achieve intelligent environmental monitoring and to avoid damage caused by environmental changes.

As an important transit base for iron ore, crude oil, rubber, cotton and other bulk commodities in China, the free trade zone in Qingdao has continuously improved its level of trade facilitation and innovated the regulatory model to promote the digital transformation of commodity management. The digital construction will be deepened in the future to make it a smarter free trade zone.