Blockchain and IoT technology is becoming increasingly popular and many industries are implementing them into their operations. One of the latest industries to consider the technologies for its operations is freight.
Such technology has the ability to improve an industry plagued by inefficiency, unnecessary costs, waste, and outdated communication methods. Additionally, many clients in the industry must conduct business through independent brokers, forwarders, and contractors, each of which can get lost, stolen, or even misreported along the supply chain. Another major issue is that there are poor accountability process and constant questions of responsibility. All of these issues leave parties unprotected and vulnerable.
To resolve the problems, John Monarch, the CEO of ShipChain, suggests blockchain technology. Monarch, who also founded Direct OutBound, clearly has great insight into industry’s challenges and what it needs. Blockchain technology and the use of IoT technology features sensors that can report on the location of every container and the condition of the goods inside of the containers.
Further, cargo owners and other supply chain participants can track and trace the cargo anywhere on its journey. The blockchain-based smart contracts also safeguard the accuracy of the data, that it is transparent, and that it cannot be changed at any stage of the process. The hope is that this type of process also mitigates the need for paper documents.
Another point to note is that the blockchain technology may optimize the entire industry and smaller companies may even benefit the most. The smaller companies may be able to finally overcome brokers’ fees, data stream mistakes, and a lack of efficiency. The smart contracts address these issues and make it easier for practices to be implemented on a daily basis.
At this point, it’ll be interesting to see how projects like ShipChain grow. Monarch and Sam Rusani, ShipChain’s CRO, interviewed with Africa Energy & Infrastructure’s Arvy Nahar to discuss the platform’s goal of using blockchain technology to improve the industry.
As Rusani stated,
“It was an honor being interviewed, because I think there are lots of international opportunities. Transport and logistics is as global as it gets, and features in magazines with other international and local leaders both gives us credibility and opens doors to explore opportunities.”
During the interview, ShipChain’s end goals were further expanded upon. In answering the inquiry about the company’s goals, Monarch stated,
“ShipChain’s primary end goal is to add more transparency to the supply chain and logistics process. By utilizing blockchain technology, we are improving end-to-end track and trace, opening up the intermediary process, and providing insight into freight that has been lacking due to outdated technologies and sometimes still even pens and paper processes.”