Logistics companies in the UK currently operate under different systems, but Associated British Ports (ABP) wants to change this by using blockchain technology to create a seamless network.
ABP signed a deal with the Marine Transport International (MTI) to improve the connectivity among different players in the logistics industry. The partnership aims to study the possibility of blockchain as a single unifying link for all entering data at each stage of the shipping process, from port operations to freight shippers and retailers.
By streamlining data input, companies could save time and money since data is securely stored and shared with different channels. Brexit’s looming impact should serve as a reminder why companies need to invest more in new ways to improve the efficiency of logistics shipments in and out of the country.
The technology would also complement existing ways for streamlining logistics activities, such as using automated skates for unloading shipping containers from trucks. The initiative will be useful in meeting the growing demand for shipments from the e-commerce trade, which is expected to reach a record amount of spending in 2018.
The Office for National Statistics (ONS) said that online retail spending in the UK rose 18.2 per cent between June and August. ONS’ report showed that the recent growth continued its momentum from the previous year when e-commerce transactions increased to approximately £366 billion.
As the holiday season approaches, it is highly possible that Britons would spend more on their online purchases. This would then prompt retailers to require faster delivery times since consumers no longer consider discounts as their primary reason for buying items from an online store.
The introduction of blockchain technology for the logistics sector makes sense since other developed countries have begun to digitalise their own platforms. While the project is in the pioneer stages, companies should consider investing in automation to improve the efficiency of their port or shipping operations.