The parcel carrier and third-party logistics provider hopes to utilize blockchain technology in its customs brokerage businesses for added security and efficiency, the company said in a statement.
UPS has joined the Blockchain in Trucking Alliance (BiTA), a forum for the development of blockchain technology standards and education for the freight industry, the company announced last week.
“UPS sees the need to create industry standards and protocols to enable blockchain platforms to operate together with established technologies. In the future, blockchain standards and intercompany collaboration will support the logistics strategies that enable UPS customers to participate in global trade and finance,” the company said.
UPS said it would like to add blockchain technology to its customs brokerage business, as it would improve transaction accuracy and replace existing paper-heavy and manual processes.
Blockchain, a digital database using “blocks” of data that are linked and secured by cryptography, is extremely secure and efficient and valuable for all parties involved in UPS’ customs brokerage, the company said. More than 300 firms have applied for membership to BiTA, including UPS and its subsidiary Coyote Logistics – a non-asset based truckload freight brokerage company that UPS acquired in 2015.
“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. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
UPS joins Blockchain in Trucking Alliance forum
