Blockchain technology is in the process of revolutionizing the FinTech, real estate, and other industries, but it is also prepared to disrupt the supply chain. The shipping industry, while it keeps the global economy afloat, is riddled with inefficiency that directly impacts businesses and consumers. Shipping needs to move forward – so blockchain is just the push it needs.
Before looking to the future, it’s essential to examine the past. Decades ago, trains were the go-to method for relocating goods. Railroads are stationary, so it was easy to track their comings and goings as well as load them with vast amounts of cargo.
The interstate highway, however, ushered in a new era of shipping. Though trucks have smaller capacities, they are much more flexible when it comes to their destinations. So long as there is a road connecting two points, a truck can travel between them, and there can be numerous trucks driving simultaneously.
An abundance of trucks is much more challenging to track than trains, though. Rather than suffer through sluggish communication, brokers arose to oversee the whole process. Unfortunately, freight brokerage is a business with high margins, so brokers are incentivized to schedule as many shipments as possible (often connecting the cheapest shippers and carriers) without regard for pragmatism. The field is also very centralized, so brokers can get away with impractical bookings because they have access to information that shippers and carriers do not.
Thus was born the trucking industry’s…