Blockchain’s Impact On The Shipping Industry

The potential of using blockchain technology to emancipate decision-making in the shipping industry could have greater implications for management and speed. 

The shipping industry is one of the hardest hits of the internet era. Decision-making has become a prolific research area, which has propelled globalization and the virtual elimination of many country border barriers. However, effective decision-making in the shipping industry is a time-consuming and often complicated process.

Moreover, there is a dearth of comprehensive research on how blockchain affects decisions in the shipping industry. Blockchain technology can solve many problems that traditional payment methods have created in the shipping industry while saving time and cost.  

Cryptocurrencies are poised to revolutionize the world’s financial systems by delivering an alternative to centralized fiat currency systems. These currencies are designed to be flexible, transparent and decentralized with no central control system. The emergence of cryptocurrencies has generated new questions about standard economic theory and its underlying assumptions of “rational” individual behavior.    

The shipping industry is a crucial component of any country’s economy. It assists in distributing goods all over the world, which allows businesses to reach new markets and consumers to purchase various products. However, it has been subject to various challenges such as overcapacity, rising costs, and increasing environmental concerns. Blockchain technology can serve as a solution for these problems by providing a secure and transparent platform for data-sharing. In this research, grounded theory was used to explore how blockchain technology will impact decision-making in the shipping industry and how it can be used to improve decision-making processes. The study results indicate that blockchain technology will improve decision-making by providing reliable data and reducing information asymmetry among related parties. 

Blockchain has been touted as the next generation of technology that would disrupt industries and redefine business models. The shipping industry is a microcosm of the global trade and logistics market, which is particularly hard to optimize due to its complexity, prohibitive cost, and risk inefficiency. As such, it represents an excellent testbed for blockchain technology. 

Blockchain has many potential applications in the shipping industry, from smart contracts that enable secure transactions between parties to the elimination of intermediaries and streamlining payment processes with cryptocurrencies. Moreover, blockchain can effectively boost transparency by providing traceability of goods, as well as creating a permanent record of all transactions that are verifiable and resistant to tampering. However, before these benefits can be realized, various challenges need to be addressed. These include creating a shared view of information among stakeholders; establishing trust among participants; building efficiency; considering regulatory framework; and so on. Despite such challenges, this study suggested that blockchain’s capabilities in decision-making are promising and will inevitably bring about changes in the shipping industry.   

ProConnect Integrated Logistics – A Freight Forwarding & 3PL company offering end-to-end Supply Chain & Logistics services.

There are many 3PL & freight brokers in the industry, it is important for you to choose the right partner for your shipment. Your shipment is valuable, and we ensure we treat it like ours. ProConnect Integrated Logistics gets its expertise, experience and value of working from its group company – Redington. Over the years, ProConnect has established itself as a preferred freight forwarder and logistics partner for many companies in the UAE and Saudi Arabia, catering to a variety of industries.

If you are looking for a partner to take care of all your logistics hassles, talk to us.

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