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UPS(United Parcel Service) joins Blockchain alliance
Shipping giant UPS joins Blockchain alliance that primarily focuses on the Shipping and Trucking industries. UPS has joined Blockchain in Trucking Alliance (BiTA), for the development of Blockchain technology standards and education for the freight industry.
Acknowledging a number of use cases, Linda Weakland, UPS director of enterprise and innovation, spoke of the possibilities of blockchain-backed systems
“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage. The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
UPS is mainly exploring the Blockchain applications to implement it in its customs brokerage business. UPS is one of the world’s largest customs brokers, and a key objective of its brokerage strategy is to digitize transactions. Blockchain technology would help by improving transaction accuracy and by replacing existing paper-heavy and manual processes. This will benefit all parties involved in the transactions. Such an application would be highly secure and would generate valuable efficiencies for shippers who rely on UPS for customs brokerage.
A UPS spokesman said the reason for the company joining BiTA: “That there is a need to create industry standards and protocols to enable blockchain platforms to operate with established technologies.”
Purpose of BITA formation
Craig Fuller co-founder of the trucking alliance BITA said:
“Blockchain [technology] by its nature is distributed and owned by no single person. It is open source and requires collaboration and standards,” said Fuller. “We are helping to launch BiTA as a way to initiate dialogue between parties in the trucking ecosystem.”
Along with UPS there are 300 members which joined in BiTA. Another shipping giant Coyote Logistics truckload brokerage unit is also a BiTA member.
Investment group Stifel says that “Blockchain should make transactions more efficient and reduce payment disputes but is still years away.”
The members of BiTA are currently discussing the options and methods of Blockchain technology’s implementation.