How blockchain changes shipping

How blockchain changes shipping

Transport logistics is an integral part of international transport. This is a complex system for organizing the delivery of goods from one point to another. The main tasks of logistics are to minimize delivery times, simplify workflow and ensure the safety and security of cargo. However, they can not be solved quickly and practically yet.

Despite the availability of modern Internet technologies, the problem of finding cars and goods for both sides remains relevant – and intermediaries actively use this. However, the presence of a chain of “extra” people significantly increases the cost of the transport itself. In addition, due to the fact that the owner of the cargo doesn’t have any control over the delivery process, gray schemes, smuggling and counterfeit flourish on the market.

The process of cargo delivery is complicated by the many interactions between logisticians, freight forwarders and officials. Sometimes even a slight deviation from the planned schedule can lead to the rupture of the entire chain. In addition, the situation is complicated by paperwork and customs issues related to the declaration of goods and permits.

The main qualities of blockchain chains – transparency, security and the absence of a third-party regulator – can be indispensable for logistics. This technology will solve many problems. Here are just a few of its advantages.

The great opportunities offered by the blockchain technology could not go unnoticed either by the states or by the largest companies.

Experiments on its implementation began at the end of 2016, members of R3 Wells Fargo and Bank of the Commonwealth of Australia for the first time successfully used the blockchain and smart contracts when shipping cotton from the USA to China. However, the matter did not move further than the experiment. The technology was also tested by the Netherlands and the largest Danish carrier Maersk.

In addition, giant block retailers are viewed by such giant retailers as Wal Mart, Amazon, Alibaba and Kestrel. Finally, the wave of mastering the blockchain has touched start-up carriers.

The Ukrainian online platform A2B Direct has become the first logistics company in the CIS to introduce blockchain into the chain of logistics operations. According to the creators of the project, smart contracts working for Ethereum will solve the issue of cargo tracking, as well as help to introduce a carrier incentive system.

A2B Direct delivers goods on the territory of Ukraine and Belarus, but soon plans to enter the international arena of cargo transportation.

Thus, with the introduction of blockchain solutions to the process of cargo transportation, problems with document circulation, security and cargo tracking will be solved. However, most importantly, the cost of transportation will drop significantly.