Bookmark and Share

Does Blockchain Have a Future in the Trucking Industry?

Blockchain has quickly become a technology giant. Gaining popularity from its use in cryptocurrencies like Bitcoin, experts are now looking at what other industries can be improved through blockchains and trucking is no exception. Blockchains biggest advantage comes in its ability to decentralize logistics effectively making it easier for trucking companies to connect with suppliers.

One company pioneering this technology is DexFreight. DexFreight looks to create an open source platform for shipping logistics with the help of block chains and machine learning. Blockchain would effectively cancel out the middle man and allowing trucking companies to connect directly with possible suppliers. DexFreight provides a platform for direct communication between parties as well as payments for goods through Bitcoin.

In October of 2018, DexFreight successfully completed its first shipment-based contract of a load of seafood transported from Medley, Florida 30 miles to Sunrise, Florida. While not a giant of shipping logistics, DexFreight's presence has not gone unnoticed. In 2018 it was recognized as a Freight.Tech as one of the top 100 companies for innovation and disruption in the trucking industry.

But there are still future hurdles before blockchain becomes the standard for trucking logistics. First and foremost, the technology requires a commitment from truckers as well as suppliers. For blockchain to work both the sender and receiver of information or funds need to be using the technology. Blockchain logistics will have no effect if trucking companies large and small are not willing to adopt the technology. Furthermore, the entire industry will need to standardize the blockchain tech they will be using. This may sound daunting but has had moderate progress with organizations like Blockchain in Transport Alliance (BiTA) working within the industry to create these standards.

If the industry is willing to make the transition to the blockchain, it has the potential to be one of the most disruptive technologies in the history of the trucking industry. But it will require a coordinated effort by everyone involved.

For more information about trucking technology, please contact us.