Amid a global pandemic, there has arguably never been a better time to make the movement of air cargo more efficient and easier to monitor. Switching to blockchain could help make this achievable, creating crucial cost savings for stakeholders in the bargain.
The Covid-19 outbreak has brought global supply chains to their knees, with critical companies forced to shut down their operations.
According to figures released by International Air Transport Association (IATA), demand within the global air freight markets in April suffered a drop of 27.7% compared to the same period in 2019 – the sharpest year-on-year decline on record.
This has been coupled by a significant capacity crunch across the air cargo sector, with capacity down by 42% as a result of many airlines being grounded during the crisis. The result of this perfect storm has been lengthier shipping times and higher costs all round.
In a recent statement, IATA chief executive Alexandre, de Juniac called on governments to do more ensure supply chains “remain open and efficient”. Air cargo has a role to play in the transportation of medical supplies, food and other necessities to the worst-hit regions, he argues. The global economy also needs air freight to continue to supply businesses and factories.
Now is the time to also ensure that the movement of air cargo is more efficient and easier to monitor. Could blockchain technology – already widely deployed in other industries to make supply chains more transparent – spell out the answer to this longstanding issue?
Saviour solution: SITA and ULD Care’s proposed blockchain platform
SITA seems to think so. In March, the aviation technology firm announced it had partnered up with Canadian trade association ULD Care, as part of an effort to explore the use of blockchain to digitally track air cargo containers – or unit load devices (ULDs) – across their entire journey.
“Blockchain will help reduce costs related to tracking assets.”
The two firms are betting big on their proposed platform. Through the elimination of inefficiencies, embedding “always-on” tracking of ULDs, and the scrapping of outmoded paper systems, blockchain could save the industry as much as $400m a year in improved efficiency, while cutting shipping times in half.
Source: https://www.airport-technology.com/features/blockchain-air-cargo/
