Blockchain: Are There Benefits to Early Adoption?
For the trucking industry, there could be some completive advantages to early adoption of blockchain technology. Blockchain is distributed, decentralized ledger database used to record digital transactions that are shared in a secure way. Blockchain stores block of information, much like the internet does. It allows digital information to be securely stored but not copied. This would help expedite and better secure freight transactions for shippers and carriers.
In trucking, blockchain technology could ensure better asset utilization and help the industry more accurately forecast and predict volumes, several of the intermediaries between the shipper and the carrier could be eliminated, strengthening the communication between shipper and carrier. The driver would be able to better monitor and know the vehicle was operating under the right framework. After the freight was completed blockchain would then provide an audit of the process for fleets to see what they can improve on.
Drivers and fleet owner/operators would also be able to better detect maintenance and quality assurance elements of all their trucks and equipment. Blockchain would be able to provide a trustless record, with the ability to see everything that has happened to each vehicle in its entire lifetime.
Some other benefits of blockchain include:
- Transparency of price, ownership, and entire freight movement to directly resolve informational disputes
- Reduction of costs of regulation compliance
- Improved traceability and trackability
- Expedited claims settlements
- Better ability to make smarter decisions to optimize business and ensure smoother planning
- Eliminating fraud
The Blockchain in Transport Alliance is a global initiative to bring blockchain into trucking to enhance the efficient of freight movement. The alliance was formed by experienced tech and transportation executives to create a forum for the development of blockchain standards in education for the freight industry. Their goal is to bring together leading companies in freight technology industries that have a vest interest in the development of blockchain technology.