The rise of blockchain in air cargo industry is impressive. Blockchain-based solutions are standard in ticketing, supply chain, and air cargo operations. Now, an air transport company called Sita is working on a blockchain-based solution for the air cargo industry that will help save $400 million a year. Air cargo is known for its high transportation costs, and savings of such a magnitude can trigger industry-wide interest in blockchain.
Blockchain in air cargo operations helps companies track and manage the custody of cargo containers or ‘Unit Load Devices.’ Their accurate tracking across various destinations is maintained securely in digital ledgers. Sita wants to reduce transportation costs, increase efficiency, eliminate losses, and improve cargo security using blockchain.
Blockchain in air cargo operations to help reduce operating costs
The proposed solution will integrate secure authentication to cut down tampering risks, fraud, cybercrime, and illicit transactions. Vice president of ULD Care, Bob Rogers, says that a container takes around 30 days to reach Long Beach from Shanghai. However, it remains in the sea for only about 15 days. The remaining time can be attributed to paperwork and back-office operations. Blockchain in air cargo can significantly reduce this period.
Currently, cargo tracking and monitoring are undertaken by 12 companies. Most of the processes are paper-dependent, which slows down cargo movement. On the other hand, secure blockchain helps speed up the process as it can address transparency and authentication concerns. The use of blockchain in the air cargo industry can go beyond just goods tracking and has the potential to resolve other air freight issues as well.
Logistics industry is adopting blockchain like never before
Blockchain in air cargo industry may be new, but logistics have been at the forefront when it comes to adopting blockchain-based solutions. Recently, IBM Indonesia partnered with shipping platform TradeLens that provides blockchain-based shipping solutions.
Recently, a report shed light on how 25 renowned pharmaceutical firms, distributors, and manufacturers have favored blockchain adoption to improve supply chain management. The use of blockchain in healtcare is also expanding rapidly.