The Blockchain will be a real game changer in the TRANSPORT and logistics Industry (T&L)
Who are the BIG PLAYERS and who are already onboard?
FedEx, UPS, Visa, Walmart, Maersk, British Airways are just a few that come to mind.
Currently there are a number of challenges within the T&L Industry
The TWO main concerns are;
Transparency in supply chains
– End users not knowing where their products originated.
– Complicated processes with middleman freight brokers.
– Lack of accountability when products disappear or damaged during the process.
– This is a $15- $30bn dollar problem annually.
– Fraudulent pickups, where con artists with forged documents picking up goods. This 10% of all thefts which amounts to $150m in annual losses.
– Food and Beverage was the most stolen products representing 18% of all thefts. Targeted products were meats, nuts, canned and dry goods. The 2nd most common items were electronics including televisions, projectors, cell phones and accessories.
Existing security to combat theft include covert GPS tracking and active monitoring- The Blockchain adds a more effective layer to supplement this monitoring providing a series of irrefutable information throughout the process.
Professor Chris Speed of the University of Edinburgh
“As Blockchain is a distributed ledger, all the parties involved in the transaction could, providing the contract allows, see what is inside a container or a truck, and then confirm the contents. Secondly, the real-time visibility that Blockchain provides could reduce VAT fraud or carousel fraud, as technically, the Blockchain would be able to identity, if and when, a consignment had been tampered with, and then alert those involved in the transaction.”
How can Blockchain technology help solve these?
Blockchain technology provides a more transparent, secure, efficient system which will allow consumers a more transparent environment, while also encouraging competition in the industry. Consumers will benefit from a more cost-effective and efficient way of logistics management, even on an international scale.
Blockchain technology could help eliminate operational inefficiency, which has been a constant challenge for the global freight sector annually. Recent statistics from the New York Shipping Exchange state over-booking and cancellations cost the ocean-going freight sector around USD$23 billion every year.
Bridget van Kralingen- Senior vice president for IBM Industry Platforms
“Blockchain [technology] holds incredible promise in delivering the transparency that is needed to help promote food safety across the whole supply chain.”
Author Rob Harris
Rob is a Certified Bitcoin Professional, digital marketer and content creator from Canada who is lives in the Caribbean. He has a background in financial services, marketing, event promotions and consults for multiple blockchain and cryptocurrency companies. Rob is a firm believer that the blockchain technology and cryptocurrencies will disrupt existing industries and has the potential to revolutionize the world.