Transportation revolution and blockchain

transportation and logistics revolution and blockchain
dispute resolution is one of the biggest challenges in cargo transportation.






what is your opinion about the Effects of blockchain in transport?


understanding transport

Blockchain is revolutionizing the world of transportation and logistics

the action of transport is defined as a particular movement of an organism or thing from a point A (a place in space) to a point B. Transport enables trade between people, which is essential for the development of civilizations.

Mode of transport is a term used to distinguish between different ways of transportation or transporting people or goods.

The different modes of transport are air, water, and land transport, which includes Rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport.

Human-powered transport and animal-powered transport are sometimes regarded as their own mode but never fall into the other categories.

In general, transportation is used for moving of people, animals, and other goods from one place to another.

The means of transport, on the other hand, refers to the vehicles necessary for transport according to the chosen mode (aeroplane, ship, truck and rail).

Each mode of transport has a fundamentally different technological solution, and some require a separate environment. Each mode has its own infrastructure, vehicles, and operations.


Diversity of Modes

Transport modes are designed to either carry passengers or freight, but most modes can carry a combination of both.

For instance, an automobile has a capacity to carry some freight while a passenger plane has a bellyhold that is used for luggage and cargo.

Each mode is characterized by a set of technical, operational and commercial characteristics.

Technical characteristics relate to attributes such as speed, capacity, and motive technology while operational characteristics involve the context in which modes operated, including speed limits, safety conditions or operating hours.

The demand for transport and the ownership of modes are dominant commercial characteristics.

Blockchain is revolutionizing the world of transportation and logistics

  1. Road transportation

Road infrastructures are large consumers of space with the lowest level of physical constraints among transportation modes.

However, physiographical constraints are significant in road construction with substantial additional costs to overcome features such as rivers or rugged terrain.

Road transportation has average operational flexibility as vehicles can serve several purposes but are rarely able to operate outside roads.

Road transport systems have high maintenance costs, both for the vehicles and infrastructures.

They are mainly linked to light industries and freight distribution where rapid movements of freight in small batches are the norm.

Yet, with containerization, road transportation has become a crucial link in freight distribution.

  1. Rail transportation and pipelines

Railways are composed of a traced path on which wheeled vehicles are bound.

Heavy industries are traditionally linked with rail transport systems.

Pipeline routes are practically unlimited as they can be laid on land or underwater.

Their purpose is to move liquids such as petroleum products over long distances in a cost-effective fashion.

Pipeline construction costs vary according to the diameter and increase proportionally with the distance and with the viscosity of fluids (from low viscosity gas to high viscosity oil).

  1. Maritime transportation

With physical properties such as buoyancy and limited friction, maritime transportation is the most effective mode to move large quantities of cargo over long distances.

Main maritime routes are composed of oceans, coasts, seas, lakes, rivers, and channels. However, due to the location of economic activities, maritime circulation takes place on specific parts of the maritime space, particularly over the North Atlantic and the North Pacific.

Maritime transportation has high terminal costs since port infrastructures are among the most expensive to build, maintain and operate.

  1. Air transportation

Air routes are practically unlimited, but they are denser over the North Atlantic, inside North America and Europe and over the North Pacific.

Air transport constraints are multidimensional and include the site (a commercial plane needs about 3,300 meters of runway for landing and take-off), the climate, fog, and aerial currents.

Air activities are linked to the tertiary and quaternary sectors, notably finance and tourism, which lean on the long-distance mobility of people.

  1. Intermodal transportation

Concerns a variety of modes used in combination so that the respective advantages of each mode are advantaged.

Although intermodal transportation applies for passenger movements, such as the usage of the different, interconnected modes of a public transit system, it is over freight transportation that the most significant impacts of intermodalism have been observed.

Containerization has been a powerful vector of intermodal integration, enabling maritime and land transportation systems to interconnect.

  1. Telecommunications

this physicality is real since they are structured as high capacity networks with very low constraints, which may include the physiography and oceanic masses crossed by fibre optic cables. They provide for the “instantaneous” movement of information (speed of light).

High network costs and low distribution costs characterize many telecommunication networks, which are linked to the tertiary and quaternary sectors (stock markets, business to business information networks, etc.).

Telecommunications can provide a substitution for personal mobility in some economic sectors, but the major impact is related to e-commerce, which has opened a whole range of commercial opportunities.

Problems and Advantages of transportation

Problems of modern transportation include:

  • traffic safety
  • declining fuel reserves
  • environmental problems
  • inadequate public transportation facilities
  • The high cost of building and maintaining roads (need public funding)
  • Low capacity for the land area used (causes congestion)
  • Poor safety (causes deaths and injuries)
  • A major source of pollution: air, noise, light, water (causes health problems)
  • A major source of carbon-emissions (causes global warming)
  • These problems are most severe in countries that depend heavily on automobile transportation

Solutions to problems of transportation

Blockchain is revolutionizing the world of transportation and logistics

  • Development of Additional Road Capacity
  • Traffic Management Measures
  • Effective Use of Bus Service
  • Parking Restrictions
  • Promoting the Bicycle
  • Encouraging Walking
  • Promoting Public Transport
  • Restrictions on road capacity and traffic speeds
  • Regulating traffic access to a link or area
  • Charging for the use of roads on a link
  • or area basis
  • Vehicle restraint schemes
  • Rail rapid transit
  • Transport coordination
  •  Public transport improvement ..etc.




Blockchain is revolutionizing the world of transportation and logistics

blockchain, a technology that stores non – stop information blocks through a digital shared network

  • could revolutionize the future of trucking
  • logistics by creating a new system of transaction completion
  • shipment tracking, and fleet management.

When it comes to the challenges and needs of the transport industry, the blockchain can become a transformative tool.

For freight brokers, blockchain technology can provide solutions to some of the biggest challenges in the logistics and transport industry: commodity protection and maximum delivery efficiency.

companies across the industry are realizing that they can use blockchain technology to streamline their business and provide better service to their customers.

As the inefficiency of the logistics and transport world is growing, more and more companies are joining the burden of integrating blockchain technologies into the trucking industry.

From dispute resolution to administrative efficiency and order tracking, blockchain has the answer to the problems that have been plaguing the transportation industry for decades

Blockchain technology can save millions of dollars for global transport and logistics companies. Blockchain could revolutionize the transport, logistics and freight industry in the not too distant future.

As digital technology is shaping the transport industry, blockchain has become one of the most important priorities for most organizations.

Blockchain has already been widely adopted by the financial sector and has slowly entered other sectors, including the supply chain and health care.

  1. Every day, there are $140 billion tied up in disputes for payments in the transportation industry.


  1. Processing and administration costs have risen to as high as 20% of transportation’s overall costs, due to over-reliance on paper transactions.


  1. 5% of sensitive pharmaceutical shipments experience temperature deviations. Because of this, these products never make it past customs due to exceeding acceptable temperature ranges.


  1. 90% of trucking companies have six trucks or fewer. This causes the industry to struggle with matching shippers (the demand) with carriers (the supply).

So what’s the solution? Well, as you probably guessed, blockchain technology can disrupt the landscape of the logistics industry and solve most if not all of its problems.

In fact, many companies are implementing revolutionary technology and enjoying its benefits as we speak.

For the most part, blockchain can boost the efficiency and transparency of supply chains, banish inaccuracies, prevent frauds, and reduce expenses just to name a few.

In a nutshell; the very things that are needed for the integrity, reliability and transparency in a supply chain lies in the blockchain.


Learn how blockchain technology is improving the world of transportation and logistics, making companies more efficient and profitable!


Improve the Efficiency of the Shipping Process

Blockchain is revolutionizing the world of transportation and logistics

One company that has incorporated blockchain into its operations is Maersk; the world’s largest operator of shipping containers.

Moving forward, this company worked alongside Dutch Customs and US Department of Homeland Security to implement the technology in regards to the transportation of their freight across international borders.

Of course, the big idea here was to use blockchain to track their cargo remotely.

That’s not all — in 16th January 2018, Maersk and IBM announced their intention to form a joint venture that’s geared towards using blockchain technology to improve global trade.

Essentially, the system is expected to replace the current logistic process and reduce the overall expenditure involved in cargo transportation.

Fewer errors and better delivery times are great advantages that are also worth mentioning!


Inventory Tracking

Ever given thought to why inventory tracking receives lots of attention in the business world?

Today, several leading food retailers have teamed up with IBM to build a blockchain-based system that supports tracking of food items.

Some notable companies in the alliance include Unilever, Nestle, Walmart and more. Speaking of which, Walmart has used blockchain technology to track both pork (China) and mangoes (Mexico) back to the farm.

For those who might not be aware, food (especially fruits) tracking can help businesses and consumers alike.

In essence, companies will be able to identify infected batches and destroy accordingly.

So yes, they won’t have to get rid of the entire stock and consumers will be safe — the perfect win-win.

Better Transparency

Perhaps the biggest advantage of this revolutionary technology for transparency is that it’ll help build trust between companies.

blockchain systems will minimize invoice disputes, cut auditing costs and most importantly, prevent the exploitation of workers at ground level.

Invoicing and Payments

Today, many companies find it hard to develop efficient and secure systems for invoicing and payments.

Moving forward, Tallysticks (an international trade solution) has built a blockchain-based platform that can process invoicing and payments for logistics and other businesses.

the platform uses smart contracts to approve a payment that corresponds to an invoice.

It’s also good to mention that the Global credit card giant Visa has also launched its blockchain-based B2B payments service.

Yes, blockchain is truly the wave of the future!



Settling Disputes !! dispute resolution is one of the biggest challenges in cargo transportation.

Of course, at this point, our core focus is on delayed or misplaced goods.

As most of us know, this problem can take a heavy toll on companies. And most times, they may actually need to seek external help to iron things out.

Well, the good news is, the American multinational courier delivery service FedEx has implemented a solution that’s geared towards using blockchain to settle customer disputes. For the most part, FedEx will keep all parties in the know so as to ensure easier dispute resolution.

In essence, the sender and receiver will be aware of the process before pickup and after delivery. And should any dispute arise, the third party or better still, independent auditors will no longer be called for a resolution.

FedEx’s blockchain-based ledger is enough to fix things!

So there you have it! With all that has been said, you can tell that blockchain technology is set to revolutionize the logistics industry.

From inventory tracking to processing payments to transparency to dispute resolution, blockchain technology is clearly a game-changer for the supply chain management. The future of logistics is here!



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