Blockchain is a new technology which enables information and transactions to be managed collectively across an entire network using a chain of blocks of secure data. No single stakeholder can claim absolute authority over the network, nor can any single party edit information stored in the system without the explicit consent of every other stakeholder in the system.
This ensures visibility and transparency – two vital parameters that have remained elusive for decades. Originally developed for the financial sector, it has huge potential in logistics operations. Moving away from traditional and often unmanageable paper contracts and operations, to secure smart contracts and authenticated transfers of electronic documents, will cut administrative and operational risks for all participants in the supply chain. This is particularly welcome news when you consider that a single shipment can currently accumulate around 200 separate pieces of paperwork.
One area where blockchain technology can make a huge difference is trucking. It is widely affected by a shortage of drivers especially in the US. Trucking is a massive industry here, accounting for over $720 billion* in annual revenue and representing 81.5% of the country’s total freight bill. However, the sector suffers from severe fragmentation, with 90 percent of the trucking fleets owning six or fewer trucks. This creates a situation where shippers lack transparency into available trucking capacity, while truckers log thousands of deadhead miles, missing out on hauling opportunities due to network opacity. Blockchain, could help to bridge this disconnect.
For all modalities to confidently exploit the potential fluidity of new blockchain systems, there has to be total transparency and trust in the integrity of any shipment. Loading and securing processes must be safe, utterly dependable and standardized to meet global standards of compliance across all jurisdictions and modalities. This is why it is vital for shippers to work with a cargo protection expert with global reach to ensure that everyone working within your supply chain fully understands requirements of regulatory authorities throughout the world. Cordstrap are the one cargo protection company who can ensure that happens. Our fully CTU Code compliant solutions offer the full suite of certifications and approvals from key regulators and insurers including: Germanischer Lloyd, the IMO and Mariterm AB and the Association of American Railroads (AAR).
Our global supply, support and training network can advise and inform your logistics teams anywhere in the world. This will ensure that your entire supply chain standardizes best practice and guarantee your cargo more streamlined transit along more efficient, blockchain-enabled, routes. Talk to one of our cargo protection experts today.