Blockchain technology is getting more popular among the trading industry; the technology is changing the age-old “global refrigerated sea transport” system. Already the technology has infiltrated the shipping industry and the first quarter of the year is expected to witness a major change in shipping transport.
The technology is pushing the industry to reach its pinnacle; blockchain is helping the refrigerated transport market to grow in an appreciable phase. The industry is has seen more than 4% compound annual growth rate (CAGR) between 2018 and 2022.
Major problem pertaining to the marine transport industry is the amount of paperwork involved in every process. Most of the documents are made manually and thus there is a possibility for human error. This can be totally eliminated and the process can also move at a quick pace when the involved documents are removed from the equation of operation.
If the current age-old process in the industry is not replaced soon then the growth of the entire industry will start to decline over the years. Refrigerated sea transportation market can be drastically improved with the implementation of blockchain technology. A Study about the refrigerated sea transport stated that
Marine transpiration includes substantial documentation including charter party agreements, bill of lading, letters of credit, sales contracts, port documents and others that pass through a long chain of parties. The documentation process in marine transportation becomes an accurate and quick process, offering complete transparency and security due to the adoption of blockchain technology
Blockchain technology can increase the transparency in the shipping industry; the digital ledger technology eliminates the possibility of corrupting or altering any data during transactions between any two parties. Various countries across the globe are implementing the technology in various industries, especially in the Asian continent; Japan and China have already implemented the technology in services and pharmaceutical sectors.
It is expected that approximately 9% of the global GDP will switch to blockchain technology to have secured data and financial transactions. The pharmaceutical industry will benefit greatly from the refrigerated transport as they are leaning towards sea transport for the movement of their products. With all these things in place, the industry can be changed for the better with the blockchain technology.
Pharmaceutical manufacturers prefer low-cost shipments caused by rising fuel costs and concerns about carbon emission in air and roadway transportation, in addition to stricter government regulations around the world with regard to environmental issues.
Blockchain technology can be a game changer for the shipping industry; they can be elevating the entire industry to the next level. Refrigerated shipping can be greatly benefitted by blockchain technology and they will surely make the industry ready for the future to come.