Global commerce service UPS has announced that it will join the Blockchain in Trucking Alliance (BiTA) to explore blockchain applications in its customs brokerage business and develop trusted transactions with its customers and government customs agencies.
UPS has joined the forum for the development of blockchain technology to become more involved in freight industry evolution and support the logistics strategies that enable its customers to participate in global trade and finance.
As one of the world’s largest customs brokers, a key objective of UPS’ brokerage strategy is to digitize transactions to benefit all parties involved.
One of the ways it will do this is by combining blockchain with established technologies through standards and protocols.
Blockchain technology would help by improving transaction accuracy and by replacing existing paper-heavy and manual processes.
Such an application would be highly secure and would generate valuable efficiencies for shippers who rely on UPS for customs brokerage.
UPS said that it is investing in capacity and leading operations technologies to build “a smart logistics network of the future”.
It described blockchain, a digital database that links blocks secured by cryptography to keep records of any information or assets in a transaction, as “a truly disruptive technology that could change many facets of global commerce”.
Blockchain can keep track of physical assets, like transportation containers, or virtual assets, like digital currencies.
Included in the BiTA membership is Coyote Logistics, a technology-driven, non-asset based truckload freight brokerage company that UPS acquired in 2015.
The two companies will not be the last to join BiTA as more than 300 companies have applied for membership.
Another new BiTA member is eCapital — a company that supports the maritime supply chain through funding for businesses.
In September, BiTA also gained the support of Transflo — a mobile, telematics, and business process automation provider to the transportation industry in the US and Canada.
Linda Weakland, UPS Director of Enterprise Architecture and Innovation, said: “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.”
