Blockchain Implementation Promises To Redefine The Dynamics Of The Freight And Logistics Industry

The blockchain industry has brought about measurable changes visible in the end results of several businesses. The international freight and logistics industry has the potential to benefit significantly from blockchain. Blockchain has tremendous potential when it comes to negotiating the common problems faced by the international shipping and transportation industry. A majority of those challenges and their potential solutions will be discussed in this write up which is predominantly analytical and interactive in nature.

A general cross-border transaction would involve multiple parties being involved in the entire process. This would generally include logistics, freight, importers and exporters which would complicate the documentation process. In a simple consignment, companies have faced the problem of lengthy documentation processes. As many as 15 complicated documents have to be negotiated regularly.

The promise given by blockchain technology to simplify the process of freight forwarding

Presently, the bottlenecks affecting the global shipping sector are:

  • Complex paper exchange with cumbersome documentation which is slow and very expensive
  • Multiple parties get involved in the entire process originating from multiple countries
  • Shipment information often gets erroneously entered when the shipment information is being passed from one party to another (leads to non clearance in major ports)
  • Hefty penalties and bribery in the shady ports of Africa, Middle East and a few Asian Countries

The smoothness of the entire shipping industry is dependent on the way shipping information is being added and stored over the entire network. Thus, it implies that the main problem lies in the manner in which data is stored and transferred between different parties. Blockchain technology revolutionizes the entire paradigm of shipping from being a complicated network with ample disorderliness, to being a well managed architecture with decentralized command and control and complete security over the network. Today, the main challenge revolving around traditional business architectures revolve around management, command, control, administration and security. Surprisingly, blockchain has the capability to single handedly manage everything under a single umbrella. 

Blockchain has already found acceptance in several areas of the transport and allied industry like the logistics industry. The supply chain management will become easier with the implementation of blockchains which would ensure very smooth distribution of information, immutable data bases, single point failure protection and other problems of centralized network architectures.

Companies in the domain of blockchain like HashCash Consultants and a few other market leaders like IBM and Accenture are offering unmatched blockchain development services. They are catering to the needs of several industries and helping them design failure free business ecosystems for maximum client satisfaction and minimum complaints. The readers must understand that the power of smiling customers reflects on the balance sheets of the company. HashCash Consultants have maintained a notable record in terms of client satisfaction.

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