Blockchain technology is transforming various industries and sectors. Transportation and logistics are no exception, as this set of systems enables the secure, transparent, and decentralized management of information.
In 2023, the blockchain market in logistics was valued at $19.5 billion, and by 2032, the Compound Annual Growth Rate (CAGR) is expected to exceed 45%.
In other sectors, such as the global agricultural sector, it will reach a value of $1.48 billion by 2026, while by 2030, China,—the world’s second-largest economy—will have a market size of $12.1 billion.
Essentially, blockchain is a shared system where all supply chain participants record and access information in real time.
When a product begins its journey from its origin to the end consumer, a digital ledger is created that records each of the processes and stages involved in its distribution:
Some of its benefits include:
- Complete traceability: Because it is recorded in an immutable digital ledger, it is possible to track every step and location of the product in real time. The collaborative environment that characterizes blockchain solutions interconnects records among producers, manufacturers, distributors, and retailers. Companies such as Walmart and Nestlé have implemented this technology to track their food products in seconds.
- Digitization: transportation and logistics processes typically involve a large amount of documentation, such as invoices, contracts, permits, and so on. Blockchain eliminates paper, and since the recorded data cannot be altered, it prevents forgeries and streamlined procedures. Operations of this type are highly secure; studies show that only 0.15% of transactions conducted using this technology could have an illicit purpose.
- Operational efficiency: Interconnectivity facilitates coordination among all participants in the supply chain: carriers, customs, warehouses and customers. In air logistics, blockchain can reduce operational costs by up to 30% and minimize human error. It also cuts document processing times by 40%.
Today more than ever, traders, importers, and exporters are seeking professional companies like ED Forwarding, a member of PSA, which offers cutting-edge technology and expertise to ensure effective and efficient supply chains.
