Global logistics – be it on land, sea or air – depend on incredibly complex networks of operators. These range from brand owners to transport and cargo handling companies, government entities such as customs and regulators, as well as a multitude of various payment processors that facilitate credit and payments for trade and transportation in our global environment.
The logistics industry as a whole still relies heavily on fax, telephone, email and physical paper documents in tracking and processing shipments. The underlying problem is the inefficient sharing of information between all the related parties, which incur heavy costs and delays to all parties involved.
Blockchain technology can be used to alleviate this problem by connecting all the related operators into a shared system in which information can be shared in real time, thus facilitating smoother and quicker transportation.
Smart contracts can supercharge this by automating fees and payments between parties when certain conditions are met, such as a shipment arriving at a specific harbor or airport.