Trillion-Dollar Shipping Industry Betting Big On Blockchain

PALM BEACH, Florida, July 26, 2018 /PRNewswire/ --

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In the United States shipping and logistics accounts for nearly $1.5 trillion each year. With networks of producers, shippers, and consumers coordinating to access products, inefficiencies are an inevitable industry reality. In an effort to address these problems, companies around the world are working to revolutionize shipping and logistics through the instant and immutable properties of blockchain technology. Technology giants are predicting that traditional enterprise clients will seek to integrate blockchain technology into their businesses in the future. As legacy sales decrease, goliaths like IBM see blockchain as the supply-management tool of choice. The global logistics industry was valued at USD $8.1 trillion in 2015, and as the global economy grows it is estimated that this number will reach USD $15.5 trillion by 2024. Leading logistics and blockchain technology companies such as DMG Blockchain Solutions Inc. (OTC:DMGGF) (TSX-V:DMGI), Descartes Systems Group Inc (NASDAQ:DSGX) (TSE:DSG), Blockstrain Technologies Corp. (OTC:BKKSF) (TSX-V:DNAX), Drone Delivery Canada Corp. (OTC:TAKOF) (TSX-V:FLT) and AXS Blockchain Solutions Inc. (CSE:BAXS) have begun addressing issues within the shipping industry.

Is the industry ready for such rapid development? No.

The global logistics industry currently relies on outdated systems of organization to conduct business. These systems are rife with delays due to human error, poor communication, and other breakdowns. Blockchain technology offers a unique opportunity for these systems to be replaced, ushering in a new era of automation and efficiency.

In late 2017 UPS realized blockchain's enormous potential to transform industries, joining the Blockchain in Trucking Alliance (BiTA). Created for people working in the freight industry to improve standards and education around blockchain, BiTA is known for bringing major freight technology companies together to develop blockchain technology. Another recent notable member is German software giant SAP SE, who became BiTA members in 2017.  

Solving Logistical Issues With Blockchain Technology

AXS Blockchain Solutions Inc. (CSE:BAXS) is following the footsteps of UPS by betting big on blockchain logistics with its recent acquisition of Chainlinks Lab for CAD $4,000,000. Chainlinks is in the final development phase of a blockchain-based logistics platform called 1Shift Logistics. The platform aims to solve the fragmented marketplace of suppliers using outdated legacy systems that require a manual workforce to complete routine and simple tasks. 1Shift aims to solve the existing logistical issues in the trucking industry by improving transparency and reducing the likelihood of human error.