We are living in an era of digitization where computer coding and technological infrastructure are the new drivers of the future world. These drivers have led to inevitable changes and innovations in the shipping industry. The application of blockchain technology has fueled commercial contracts to become smart contracts. Blockchain container shipping is particularly beneficial in digitizing smart shipping.
Blockchain, distinctly is a form of organized distributive database, a ledger that is shared among participants in a network. All transactions in the blockchain network are linked in a sequence of blocks that can be closed, locked and new blocks can be added to the chain through digital coded transactions. These blocks are sequentially stored and recorded with specified numbers.
A secure process of verification of transactions can be carried out by the cryptocurrency payment system during blockchain shipping. It records the transaction timing and ensures that only the intended recipients get access to the information.
Here are a few advantages of using ledger technology in the shipping industry:
1. Enhanced Carrier Compliance: Companies demand faster delivery methods via local carriers due to the rise of e-commerce. Blockchain provides new technology standards required to reduce complexity while improving compliance and the integrity of shipping transactions.
2. Enhanced Customer Experience: Packages sometimes tend to get lost or damaged while in transit. Blockchain allows the customer to be in the loop by letting them track their package at all times. This allows the customer to make more informed decisions when choosing who to spend their money on.
3. Improved Transparency and Communication: In the blockchain shipping process, complete information is stored in a location that is accessible by all the stakeholders of a transaction. This provides an effective means for the customers, carriers, orders, and payments to connect in real-time. Hence, tracking and monitoring the shipment is made easier as well as more optimal.
4. Reduced Cost: Additional documentation fees, procedural delays, discrepancies, and errors can be avoided by switching from traditional methods to a blockchain strategy. Considerable cost savings have been witnessed after implementing blockchain technology.
5. Amplified Security: All information in the blockchain is encrypted, therefore preventing fraudulent activities and manipulations. Validated records of blockchain cannot be edited or changed. This ensures informational security at every point of shipment.
6. Reliability: The blockchain-based tracking system is more accurate as all members of the platform are allowed to monitor and access the ledger at the same time.
7. Privacy: Since blockchain follows a distributive ledger technology, therefore every stakeholder of a shipment has access to their information and a secure audit trail of all shipments. Thanks to cryptography as well as a crypto payment processor that allows secure interactions between all the involved parties.
Since users are obliged to follow permission-based sharing, each party has the right to protect sensitive information, such as customer data.
Blockchain shipping has created an open platform that is not bogged down with paperwork and excessive transactions. Thus enabling more fluid freight movement and reduced resource waste and cost.
Blockchain technology is taking over the shipping industry by storm, but the potential cost savings is what is everyone so excited about!