For some time now, here at Crendon Insurance we have discussed the benefits of using dropshipping for businesses, and so now with the rise of smartshipping, this month we’re looking at how this too could benefit the movement of shipping goods on a global scale.

With 80% of world trade carried out by maritime and 5% of that manged here in the UK, according to the UK Government’s Office for Science, the way we transport goods is changing in a manner which could become an integral part of the British Economy, according to a recent article by brodies.com – Blockchain in the shipping industry – the rise of Smart Shipping and central to this is the blockchain network.

The bonus is that within the blockchain network, it’s ledger can be managed by a number of contributors and is never owned by a single person / business / country – this means that it could be ideal for the maritime industry. It is a ‘self-governing system whereby cryptography verifies information in blocks of data’.

The current issue is that managing trade is a time-consuming exercise and at times, a tricky business which involves lots of manual handling of documents. By implementing smartshipping it could digitalise a lot of paperwork and enhance the exchange mechanism of goods which would be far more cost effective. Smart-shipping will allow decisions to be automated as per the code of the shipment which can then relate through into exchanging payments. Secure audit trails will be available for all shipments which means that the tracking system will be more reliable and secure data will be available in real time.

Not only will this improve efficiency whilst shipping the goods out at sea but could also improve efficiency at port authorities, freight terminals right through to logistic companies.

Does your business specialise in the shipping of goods and logistics on a national or international scale? Here at Crendon Insurance we protect companies with dropshipping, FBA retail and those businesses who are looking at start-up business insurance or new methods of digital technology to enhance their processes like smartshipping.  To find out please contact our advisors or see our website for more details.

Blogs used to write this article:

 

https://brodies.com/blog/dispute-resolution/blockchain-smart-shipping-industry/