UPS becomes a member of the Blockchain in Trucking Alliance

In another sign of the increasing relevance of blockchain technology on freight transportation and logistics, UPS said today it has become a member of the Blockchain in Trucking Alliance, which is a forum for the development of blockchain technology standards and education for the freight sector.

Blockchain technology is viewed as “an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value” according to Don Tapscott, co-founder and executive director at the Blockchain Research Institute.

And UPS explained that it sees the need to create industry standards and protocols to enable blockchain platforms to operate together with established technologies. Looking forward, it said that blockchain standards and intercompany collaboration will support the logistics strategies that enable UPS customers to participate in global trade and finance.

“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, in a statement. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”

As for how it would like to leverage blockchain technology, UPS said it is looking at blockchain applications for its customs brokerage business operations, with the company one of the largest customs brokers and the company’s brokerage strategy focused on digitizing transactions.

What’s more, it added that blockchain technology would aid transaction accuracy by replacing existing paper-heavy and manual processes, which will benefit all parties involved in the transactions. And this type of application would be highly secure and generate valuable efficiencies for shippers who rely on UPS for customs brokerage, UPS said.

A UPS spokesman said the reason for the company joining BiTA was based on the belief “that there is a need to create industry standards and protocols to enable blockchain platforms to operate with established technologies.

Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits, and customs brokerage.”

Along with UPS, its Coyote Logistics truckload brokerage unit is also a BiTA member.

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