Legend Logistics Limited: Barging

Abstract

This chapter traces the journey of how a growing global logistics provider for heavy haulage, bulk liquid, and dry commodities—Legend Logistics—noticed an emerging opportunity in decentralized finance. Founded in 2012, Legend Logistics expanded rapidly beyond the shores of its headquarters, Singapore, to establish 15 regional offices spanning 12 countries and employed over 450 employees to manage its operations, such as marine assets, dry containers, reefer containers, and ISO tanks. This case illustrates how various key drivers in the logistics industry would impact a firm’s trajectory in digitalizing and modernizing its supply chain. Amid global uncertainties, the widening adoption of technology in the supply chain sector provided a silver lining in the cloud. Alex Lin, the Chief Technology Officer of Legend Logistics, was presented with the opportunity to digitalize the company’s business through asset tokenization, which could create an entirely new revenue driver for the firm. It could tokenize the firm’s cargo into hundreds of thousands of smaller pieces that could be traded on a platform, providing liquidity and an attractive proposition, as trade finance historically paid above the risk commensurate with the yield level.