Blockchain Technology Could Save $400M for Air Cargo Industry

Blockchain Technology Could Save $400M for Air Cargo Industry

Sita, a provider of IT and telecommunication services to the air transport industry, and ULD Care, a trade group, are studying the possibility of using blockchain technology to save $400 million a year in the air cargo industry.

Blockchain improves efficiency

Blockchain technology allows air cargo companies to remotely monitor and document ownership transfers for airline cargo containers, or unit load devices (ULDs), as they fly between destinations.

Such business aims to cut down costs, increase productivity, decrease losses and avoid cargo damage.

Bob Rogers, vice president of ULD Care, said:

“A container travelling from Shanghai to Long Beach could take up to 30 days to finish its journey, but the true travel time on sea or road is only around 15 days, with the remaining time spent on back-office and paperwork. The use of blockchain could revolutionize that process.”

Blockchain solves challenges

There are currently almost 12 custodian firms controlling and recording the cargo for shipments. These companies rely on documents, which makes the process more complicated and decreases trust and accountability.

Nonetheless, blockchain saves time and money, and can solve several challenges facing the air cargo industry.

Matthys Serfontein, head of Air Travel Solutions at Sita, said:

“We are looking at blockchain very closely and we’re excited to test the potential of the technology to transform the air cargo industry.”

Blockchain offers solution for schools hurt by coronavirus

Earlier, Cryptolydian reported that ODEM, an on-demand education marketplace, has announced that it will provide a platform for schools and universities that have been disrupted by the coronavirus.

The company stated that it offers a free online education platform for teachers to continue educating students until they can return schools and universities.

Even technology firms have begun using blockchain to provide solutions aimed at tracking drug supply chains.

Some organizations are also testing the blockchain capabilities in tracking medical supplies and managing health records.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.