Blockchain Tech in the Development of the Global Transportation & Logistics

[lionheart78]

It is not new to us that Blockchain technology had been disrupting the financial industry, but many of us have little exposure to how Blockchain Technology is revolutionizing the Global transportation industry.  Though this is not a hot topic as to how Bitcoin and blockchain technology enhances the financial industry, Bitcoin and Blockchain tech somehow solve some short comings of the traditional transportation system.

Some of the issues that Bitcoin and Blockchain tech improves in terms of global transportation are:

• Transportation Payment Dispute
• Administrative cost
• Transportation of Temperature controlled goods
• LTL (Less than Truckload) inefficiency

Transportation Payment Dispute

Every day, there are $140 billion tied up in disputes for payments in the transportation industry. To put things into perspective, that’s about equivalent to the GDP of Hungary.

For an average invoice, a company must wait 42 days before receiving payment. Many businesses have millions of dollars tied up in their accounts, which they could be using to advance their business, improve delivery times and better serve end users.

Administrative Cost

Processing and administration costs have risen to as high as 20 percent of transportation’s overall costs, due to over-reliance on paper transactions.

IBM and Maersk performed an experiment where the companies tracked a shipping container of flowers from Mombasa, Kenya, to Rotterdam, the major port in the Netherlands.

They found that just a simple refrigerated shipment went through more than 30 different organizations and required over 200 separate communications. Any lost form or delayed approval could hold up the container in port indefinitely, or get it lost altogether.

Transportation Of Temperature-Controlled Goods

8.5% of sensitive pharmaceutical shipments experience temperature deviations. In the Middle East, that number rises to between 15-20%.

Because of this, many valuable biopharmaceutical products never make it past customs, as they exceed acceptable temperature ranges.

That means wasted transportation costs, additional administrative inefficiency, and in most cases, a loss of the product itself.

LTL (Less than Truckload) inefficiency

90 percent of trucking companies worldwide have six trucks or fewer. This causes the industry to struggle with matching shippers (the demand) with carriers (the supply).

Due to this issue, it’s estimated that truckers drive 29 billion miles per year with partial or empty truckloads. In case you were curious, that’s equivalent to just over a million trips around the full circumference of the earth.

This inefficiency in consolidating LTL loads costs trucking companies millions of dollars every year. It also raises shipping costs for consumers.

With the use of Blockchain Technology, the challenges stated above can be addressed by changing the face of trucking and logistics freight such as:

• Blockchain Means Better Freight Tracking
• Using The Internet Of Things (IoT) And AI To Increase Efficiency
• Effective Tracking Of Fleet Or Vehicle Performance History
• Easier Carrier Onboarding
• Using The Internet Of Things For Vehicle To Vehicle Communication (IOT)
• Making Load Boards More Reliable
• Smart Contracts Cut Costs And Eliminate Middlemen
• Sweetbridge Uses Blockchain To Increase Liquidity In The Supply Chain

We can read more on the explanation about the listed improvement above.  Here is also the infographic of how the blockchain technology is revolutionizing the global transportation and Logistics:
Here is an infographic[1] of the thread topic

(click to enlarge the image)

Additionally in particular, Bitcoin as the main cryptocurrency can also help in the improvement of Transportation and Logistics.  Although it is somehow limited, it is enough to greatly improve the industry, especially in terms of payment transactions, transparency, and efficiency.

• Faster Payment Transaction - by streamlining the transportation supply reducing the time needed to wait and giving an increased efficiency
• Transparency - with transparency it is easier to track and manage supply chain processes.
• Security - since Bitcon blockchain is fully secured, fraud and tampering is prevented
• Accessibility - Bitcoin due to the need of no intermediaries, people who are unbank can easily avail the services offered by the transportation sector.

Here are some articles to read on how the blockchain and Bitcoin revolutionize the global transportation and Logistics:

Shipping Giant UPS Joins Blockchain in Trucking Alliance
UPS dives into blockchain technology as trucking companies seek to evolve
Road to Innovation? Truck Giant Penske Joins Blockchain Group
10 Things to Know About Blockchain for the Transportation Industry
Blockchain in transport – Awaiting the breakthrough
Expedited delivery... How transportation companies can thrive with blockchain


The above-stated list may be missing some important updates and function of blockchain technology in the transportation and logistics sector, please feel free to add more so that we are able to understand how important Bitcoin and Blockchain technology is in disrupting the transportation & logistic industry.



[1] https://www.winnesota.com/blockchain

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[lionheart78]

Examples of Blockchain. in Transportation/Logistics:

• Cooperation of IBM with ZF Friedrichshafen AG and UBS: The joined forces to develop the first blockchain based automotive trading platform
• Toyota adopting blockchain: In April 2019, the Toyota Blockchain Lab was established developing blockchain technology in Toyota structures.
• Fedex using blockchain: They use blockchain to revolutionize their shipping parcels. It began with a dispute resolution process that resulted in a freight claim of several millions dollar a year
• DHL using blockchain: . Working with Accenture, the companies created a blockchain-based serialization prototype with nodes in six geographic locations to track drugs throughout the supply chain.
• Wallmart using blockchain^[1]: Wallmart use blockchain to track the movement of their food from farm to store and use distributed ledger to store the information.
  
• UPS using blockchain^[2]: they use blockchain to track the movement of packages using a distributed ledger
  
  We can read more detailed information here: https://binarapps.com/what-is-blockchain-in-transportation-how-is-it-used/ and the links below.
  
  
  [1] https://tech.walmart.com/content/walmart-global-tech/en_us/news/articles/blockchain-in-the-food-supply-chain.html
  [2]  https://www.businessinsider.com/ups-sap-blockchain-2018-8

[DrBeer]

I am very pleased that blockchain technologies allow us to solve real problems more efficiently.
The only thing - I would not focus on the fact that only "blockchain solved the problem." These solutions that you provide are a comprehensive solution using new technologies such as blockchain and IoT.
What are they roaring?
Blockchain - "Fault-Proof" Purpose of Blocks of Data
IoT - getting more data along the entire route.
As a result: the authors of the project got the technical ability to COLLECT, ACCUMULATE and process data, while technologically it is difficult to "compromise" or "change" them, which ultimately gives - the transparency and integrity of the picture.

[YUriy1991]

This is one of the other benefits offered from The Development of Blockchain Technology, one of which is in the field of the Global Transportation and Logistics Industry which has been adopted by Bonafide Company as the OP mentioned and this is a great stepping stone to promote greater competition and innovation in the future, where the use of blockchain in the industry it has the potential to increase efficiency, transparency, and security
and anti-damage as well as reducing fraud and errors not only in the world of trading, which is known by the public.

[lionheart78]

I am very pleased that blockchain technologies allow us to solve real problems more efficiently.
The only thing - I would not focus on the fact that only "blockchain solved the problem." These solutions that you provide are a comprehensive solution using new technologies such as blockchain and IoT.
What are they roaring?
Blockchain - "Fault-Proof" Purpose of Blocks of Data
IoT - getting more data along the entire route.
As a result: the authors of the project got the technical ability to COLLECT, ACCUMULATE and process data, while technologically it is difficult to "compromise" or "change" them, which ultimately gives - the transparency and integrity of the picture.

Not only the transparency and integrity but the increase in the efficiency of the process which makes deliveries and transportation faster.

This is one of the other benefits offered from The Development of Blockchain Technology, one of which is in the field of the Global Transportation and Logistics Industry which has been adopted by Bonafide Company as the OP mentioned and this is a great stepping stone to promote greater competition and innovation in the future, where the use of blockchain in the industry it has the potential to increase efficiency, transparency, and security
and anti-damage as well as reducing fraud and errors not only in the world of trading, which is known by the public.

Yeah, it is good to see companies taking advantage of the Blockchain and the technology around it.  Those companies that use the technology had reported an increase in operational profit while minimizing the maintenance cost since unnecessary middlemen are removed in the process.

[Mr. Magkaisa]

     -  Thanks OP for your very detailed topic about what blockchain technology is doing to other transportation companies. Actually, what blockchain technology can do in our country is no joke.

That's why many countries are adopting it in their jurisdictions because many companies in this era are using the concept of blockchain in their businesses because they saw the potential to help their businesses and at the same time it also helps the economy of each country. And blockchain technology has brought about a big change in every country that has accepted it.

[Hispo]

While I believe that the Blockchain as a concept and applied technology has indeed a lot of potential (as OP presented) to increase the efficiency of many real world industries. It has been a while since I have tried to understand how the interaction with real-world data and decentralized platforms is supposed to work.

I know it is made through Oracles, but I doubt on the reliability of them sometimes and the use of an artificial intelligence to do the job of oracle sounds rather ...  Dangerous(?) to me, because it does not imply complete decentralization, we would be just giving the centralized authority to an virtual entity. That is my opinion, at least...

[retreat]

The use of blockchain technology in the field of transportation and logistics has actually been introduced for a long time. I still remember that in 2018 there were many startups that introduced blockchain technology to the field of transportation and logistics, but until now no one has really taken this system seriously. Even though as we know that using blockchain technology will be able to provide various benefits and overcome various problems, especially those related to data manipulation, the existence of blockchain technology will be able to minimize data fraud in the delivery process and various other benefits. But it's a shame that there are no companies that are serious about using blockchain on their platforms

[el kaka22]

LTL is one of the hardest but also fairest ways of doing business, that is not an issue, that is a feature. Think about it this way, lets say you talked with a company and arranged a shipment, it's half full and not fully loaded truck but you paid for it, and they told you that it will be brought, then they go around and find another company and fill the next half, they will get paid by them as well, so they will be double booked, just like an airline selling your seat to someone else as well.

Maybe it doesn't change anything for the company, because they would do the job just like they would otherwise, but it's still double booking, I find LTL fine and not a trouble. Aside from that, the rest could be great with a software, blockchain backed or not, but they do not do it for some reason, no idea why.