UPS throws weight behind setting blockchain standards for freight industry

UPS, and its subsidiary Coyote Logistics, have joined the Blockchain in Trucking Alliance (BiTA), throwing their considerable weight behind the development of blockchain technology standards and education for the freight industry.

Before blockchain becomes a standard industry tool, the logistics industry will have to adopt standards and protocols to enable blockchain platforms to operate together with established technologies, the integrator said. Also, those standards and protocols need to be agreed on and implemented across the board or else companies’ computers won’t be able to talk to each other.

“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” said Linda Weakland, UPS director of enterprise architecture and innovation. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply-chain stakeholders.”

UPS said it is exploring blockchain applications in its customs brokerage business, which will help simplify the task of digitalizing airfreight transactions.

Blockchain is a digital database using blocks of information that are linked and secured by cryptography. Data shared via blockchain can be used to keep record of information or assets, which for airfreight includes physical assets, such as ULDs, or virtual assets, like digital currencies and records of financial transactions. That means that partners with access rights – and only those with access rights – can view shipments, payments and other transport data that is stored in a secured common cloud.

More than 300 companies have applied for membership to BiTA.