Shipping giant UPS has joined the newly launched Blockchain in Trucking Alliance (BiTA) as it seeks to create industry standards and protocols to enable blockchain platforms to operate together with established technologies.
Formed in August, BiTA aims to promote the adoption, education, and development of a standard framework around blockchain in the freight industry. Over 300 companies have applied for membership to BiTA, according to the official release.
UPS is investing in capacity and leading operations technologies to build the Smart Logistics Network of the future. It sees that blockchain as a truly disruptive technology that could significantly transform global commerce.
“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” said Linda Weakland, UPS director of enterprise architecture and innovation. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
UPS is exploring blockchain applications in its customs brokerage business. It said that the technology would help improve transaction accuracy and replace existing paper-heavy and manual processes, thereby benefitting all parties involved in the transactions. UPS wants to leverage blockchain technology to facilitate execution and visibility of trusted transactions with its customers and government customs agencies.
UPS and Coyote Logistics, a technology-driven, non-asset based truckload freight brokerage company that UPS acquired in 2015, are BiTA members.
