How blockchain is set to influence the trucking industry

How Blockchain Is Set to Influence the Trucking Industry Blockchain tech stocks could get a big boost as the trucking industry embraces the technology to improve efficiency.

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One of the important elements of trading education is understanding the state of the various industries so as to figure out where the potential lies. Tech stocks offering blockchain technology are in for a great boost in the transportation sector, particularly in the trucking industry, according to analyst Prableen Bajpai. The benefits of blockchain are being realized by trucking companies, suppliers, businesses, financiers and other entities involved in the trucking industry. As a result, trucking companies can get to improve their performance which could result in their stocks rising in value as well.

The trucking industry is critical to the US economy or indeed the economy of any developed nation, and blockchain can actually make it perform better. It’s been an influence in various industries and is sparking innovation all over. Trucking requires efficient, secure and accurate storing and sharing of data and hence blockchain is really relevant here.

The

Trucking

Industry

Is

Indispensable

but

Complicated According to available data, 10.42 billion tons worth of freight were moved by trucks in the US in 2016 which made up for www.tradezero.co

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70.6% of the year’s domestic freight tonnage. Trucks generated $676.2 billion in earnings, which is 79.8% of the country’s freight bill. Around 7.4 million individuals are employed in trucking and related fields. But the trucking industry is complicated, since it isn’t just one unit. We’re talking about truck and related equipment manufacturers and dealers, goods suppliers and distributors, transporters, insurers, financers and customer businesses. The presence of so many entities makes the industry lose some of its transparency and, as a result, efficiency.

How Blockchain Can Help Blockchain can help here. It can create a solid and reliable record of the transactions for sharing with various participants securely across a network. If you bring in the Internet of Things (IoT) to be used with blockchain, it multiplies the efficiency and comprehensiveness. It can be applied to various sub-segments in the trucking sector, such as quality assurance, maintenance, payment processing, performance, fraud detection, etc. All the trucking processes, particularly the supply chain, can be digitized thereby improving efficiency. This reduces the scope www.tradezero.co

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for incorrect order processing and facilitates more efficient logistics because of better communication and coordination between the various entities involved in the supply chain process.

Being a distributed ledger technology, there is real-time sharing of information with blockchain which ensures faster payment and settlement.

Blockchain Steps Already Being Made in Trucking Blockchain efforts are already being made in the trucking industry. In August 2017, the Blockchain in Trucking Alliance (BiTA) was established to facilitate the development of blockchain technology in this segment. Alliance partners include McLeod Software, US Xpress Inc., TMW Systems, Triumph Business Capital, etc. The alliance plans to build the first set of blockchain standards specific to the transportation industry.

The IBM – AOS Blockchain Partnership IBM ($IBM) and Colombian company AOS partnered back in June for creating a blockchain solution for tracking trucks and improving logistics, built on the Watson IoT and IBM

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Blockchain platforms on the IBM Cloud. One example of this solution is an automatic message being sent to customers after the truck leaves the distribution point, providing information regarding the weight of the consignment, other details, and the estimated arrival time. Sensors on the trucks can help generate an information repository tracking the stops, transactions and exchanges made by each truck. More data can be tracked, leading to greater transparency and accountability between shippers and customers.

The shipping industry has also seen blockchain developments.

IBM and AP Moller-Maersk A/S ($AMKAF) have joined forces to create a global digitalization blockchain solution for improving efficiency of the maritime supply chain, reducing costs, and contributing to smoother global trade.

Most carriers in the trucking industry don’t have a blockchain program though, but many have heard of it. But that could all change soon. Blockchain could become the single largest influence on the trucking segment.

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