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Technology

Can Blockchain be the new answer for the shipping industry?

Answers 1

The shipping industry contributes to over 90% of global cargo trade, as cargo’s can be shipped through air but the cost would be larger than the profits. The delivery of goods is not only fast and time saving but the amount of money spent on them are 65-75 percent than shipping through cargo. Now, there are new cargo ships developed who will be able to reach their destination faster 22% faster in normal conditions and 15% in bad weather conditions. These ships are able to carry 35% more weight than their predecessors. Blockchain technology plays and important part as all of the data that is needed while caring out the transaction/contract is being chained to a block. Now, if there are any changes made then as per the said clauses in the contract the rules may apply. For eg:- a) Consider 2 shipping companies, Company A and Company B are in contract with each other. They will deposit some of the money in the escrow and the smart contract is being brought up. b) If Company A is to deliver the products/materials to Company B and is successful, Company A is being paid the money and the deposit is being returned. c) But if company A fails delivering the products/materials then the deposit of Company A is being deducted. d) Similarly, if Company B doesn’t accept goods from Company A, then the deposit of the Company B is being deducted.


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