Blockchain and Logistics
The future of logistics and freighting will be heavily dependent on blockchain. The freight and logistics industry incorporates a large number of brokers and significant amounts of hidden information across complex supply chains. No single party can access all aspects of the chain. Currently, the freight and logistics industry is heavily controlled by freight brokers, which exist to facilitate transactions of loads from shippers to carriers. Brokers seek out loads, tag on a markup, then sell it to carriers. This not only increases costs for carriers, it also leads to increases in downstream prices that directly affect consumers.
The lack of efficiency, transparency and security across the global networks is precisely the problem blockchain technology is designed to solve. Blockchain, if adequately leveraged, will give customers the opportunity to participate in a freer, more transparent global trade, and potentially limit the need for brokers and lower intermediary costs.
Introducing Lane Axis
The laneaxis blockchain is built to connect shippers directly to carriers, completely detached from unnecessary and costly third party intermediaries. Much in the same way that traditional travel agencies have essentially been replaced by online travel booking sites. Self-executing smart contracts are the future of freight tendering. A shipper’s contract can be uploaded to the blockchain’s immutable ledger with self-executing actions taking place as soon as specific contract requirements are met and verified. Blockchain technology can create a “digitized roadmap” of routes, and smart contracts written into the blockchain can trigger the transfer of funds to a driver instantaneously once a delivery has been completed. It typically takes one to three weeks for most carriers to get paid. With smart contracts, payment is made instantly once the proof of delivery is confirmed. As LaneAxis’ driver community grows, smart contracts will give carriers immediate access to freight. This will provide value to both the shipper in terms of cost reduction, and to the carrier in terms of increased revenue by reducing empty “deadhead” miles.
A United States Department of Transportation study estimates over 20 billion miles per year are driven by empty trucks in the United States. The LaneAxis’ Blockchainbased solution can alert drivers to available loads in their area, or to available loads in regions they are headed to. Carriers, drivers, shippers and the environment all benefit. The blockchain’s immutable ledger is the ideal platform to store all shipment and transactional documents. This includes load manifests, bill of lading, proof of pickup, proof of delivery, driver information, insurance documents, and more.
About Lane Axis
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