Over the past year, there has been a considerable amount of buzz surrounding cryptocurrencies. However, many people don’t realize that the backbone for cryptocurrencies is blockchain technology. Over the coming decades, blockchain technology will revolutionize all aspects of our lives.
Based on current developments, it appears that our industry is one of the ones most likely to be impacted. Companies have already begun working to develop autonomous containers that are supported by blockchain technology.
What Is Blockchain Technology?
Blockchain technology has created a brand new type of internet where information is distributed but cannot be copied. It is a digital ledger of transactions that is incorruptible and can be used to record billions of data points. It seems to be the technology of choice moving forward because it cannot be hacked, making it a much safer option for companies. Any one single entity cannot control blockchain technology. The technology also cannot have a single point of failure.
Blockchain And The Shipping Industry
Blockchain technology will help the shipping industry by improving the following operations:
• Efficiency
• Scale
• Accuracy
The technology will be most beneficial when shipping pharmaceuticals. As time goes on, pharmaceutical shipments will become even more temperature sensitive than they are today. It’s reasonable to believe that in the future, temperature variations of one or two degrees could end up ruining a pharmaceutical shipment.
The blockchain is ideal for tracking and monitoring containers while they are in transit. Companies have announced that they plan to use blockchain technology to record information for the entire lifecycle of a container. Because the ledger is transparent, this information could be visible to all parties involved in the shipping process, including
• Shippers
• Airlines
• Customs Brokers
• Freight Forwarders
Because all of these parties would have access to the ledger, they would significantly reduce the number of miscommunications between them. These parties could then potentially work together to maximize efficiency in real time. For example, containers could be rerouted to minimize the time spent in transit and while protecting against product damage. With blockchain technology, parties could work together to execute this process seamlessly.
Shippers could use separate ledgers for different products. Pharmaceuticals could be on one ledger, while perishables like food products could be used on another. Blockchain technology is best-suited for shipments of high-value. Companies will be able to lower cost with scale, which means the denser a load is, the more it makes sense to use high-tech equipment.
Ideally, containers would one day be fully autonomous, much like self-driving cars. Not only would the container know its location, but it would also contain all of its shipping documents. Customs agents would be able to scan a chip to see where the container has been and the goods that it is carrying. Autonomous containers would also be able to call for help if they ever found themselves in trouble.
Some estimates predict that within the next three years, we’ll be 90% of the way toward fully autonomous technology. It will be interesting to see how our industry will be affected as a result.
