Fraudulent activities relating to information loss or data corruption are increasing day-by-day in every industry. Data needs to be secured digitally to track any interruption and monitor every check-in and check-out. Digital platforms allow information to be distributed but not copied. This is where blockchain plays a major role where records of data are distributed and managed by several computers. All the blocks of data in each computer is secured using cryptographic principles (i.e. chain). This distributed ledger is not controlled by a single individual or company. Additionally, digitally stored data on thousands of servers can be seen by anyone on the network in real-time. Blockchain in shipping industry does not allow the update or removal of any data until the consent of each participant in the system. This makes the complete process more reliable and transparent.
Here are some lesser-known benefits of utilizing blockchain in container shipping:
1. Enhanced Carrier Compliance
With the rising demand for e-commerce in the world, companies are compelled to indulge in faster delivery modes via local carriers. Complicated integration does not allow new carriers to get into the shipping market hence blockchain technology reduces complexity while improving compliance and the integrity of shipping transactions.
2. Improved Customer Experience
The reputation of a particular shipper can be hugely damaged when certain packages in transit are lost or damaged. Customers find it hard to trust the same shipper for future transits hence blockchain keeps the customers updated showing them exactly where their package is in real-time. This allows customers to make more informed decisions by reviewing the documentation from the shipper to monitor all the events in the chain and determine where the issue occurred. Customers hereby tend to spend their money wisely.
3. Improved Communication & Transparency
Blockchain in the shipping industry allows storing the information in a location that can be accessed by all the involved parties using a certain pass key. This proves to be an effective means to connect with customers, carriers, orders, and receive payments in real-time. Hence tracking and monitoring all the events in shipment is possible by the suppliers as well as the end customers.
4. Cost Reduction
Blockchain technology eliminates the additional charges of documentation, procedural delays, discrepancies, and errors. Companies have greatly benefited in the past few years by adopting blockchain strategies.
5. Enhanced Data Security
Blockchain methods add an additional layer of security by encrypting the data on the servers. This disables the viewers to change or erase any information hence preventing fraudulent activities and manipulations. Since the shipment is tracked at each step in blockchain, it eliminates any questions regarding the chain of custody.Â
6. Quicker Processing Time
The exchange of information in the blockchain is instant which traditionally took days or weeks to communicate the in and outs of the transit.
THE BOTTOM LINE
Switching to blockchain in shipping logistics has been a boon in the shipping industry to eliminate paperwork and excessive transactions and accelerate all the other processes.