Blockchain technology is being used in digital air cargo booking to improve the transparency, security and efficiency of the supply chain. While still in its infancy, the technology is making its mark on the air cargo industry, with benefits such as smart contracts, transparent tracking, secure payments, immutable records, improved security, simplified customs procedures and supply chain visibility.
Blockchain allows the air cargo industry to create smart contracts, which include the terms of the agreement written into lines of code. This code executes actions when specified conditions are met, without the need for legal language, terms or agreements.
Smart contracts can reduce the need for manual intervention and minimize the risk of errors. This can include automation for issuing bills of lading, verifying shipment details and releasing payment upon delivery.
When the contract is completed, the transactions are trackable and irreversible.
Transparent tracking allows for the creation of a shared ledger that can be used to track cargo as it moves through the supply chain. This can increase visibility, allowing shippers and carriers to track cargo in real time while reducing the risk of fraud and theft.
The technology is built using blocks of data, with each block linked to the previous block to form a chain of information that is not easily modified. Because blockchain is decentralized and not owned or controlled by a single entity, it is considered a more trustworthy, secure, and transparent way to record and store data.
Blockchain can be used to facilitate secure and transparent payments by using distributed ledger technology. Carriers and shippers can manage payments securely and instantly without the need for intermediaries, reducing transaction costs and improving cash flow.
Shippers that use the blockchain can create an immutable record of digital air cargo bookings.
Each transaction is recorded on the blockchain, and once the record is created, it cannot be altered. This creates an audit trail that can be used to verify booking authenticity and provide a tamper-proof shipment history.
Blockchain allows shippers and carriers to have a secure record of all touchpoints along the cargo’s journey.
Blockchain technology uses cryptography to provide a highly secure way to store and transmit data in the digital air cargo booking process, helping prevent unauthorized access to cargo data and reduce the risk of cyberattacks.
Simplified customs procedures
By creating a shared ledger, blockchain technology helps track cargo as it moves through the customs process.
It enables secure and transparent data-sharing, allowing customs authorities and relevant parties to access real-time information on the air cargo shipment, including the origin, destination and contents. This can accelerate the customs clearance process and reduce the risk of delays or errors.
By using blockchain technology, shippers and carriers have real-time visibility of the supply chain at every stage of the journey. This can improve efficiencies and reduce the risk of lost or delayed shipments with glimpses into the location, condition and other relevant details throughout every stage of cargo shipping.