UPS Inc. announced Nov. 7 it has joined the Blockchain in Trucking Alliance to assist in creating industry standards and protocols to enable blockchain platforms to operate together with established technologies.
Also joining BiTA is Coyote Logistics, a non-asset-based truckload freight brokerage company that UPS acquired in 2015. In particular, UPS is exploring blockchain applications in its customs brokerage business, according to the Atlanta-based company.
UPS referred to blockchain as a truly disruptive technology that could change many facets of global commerce.
Blockchain, a digital database using blocks that are linked and secured by cryptography, can be used to keep record of any information or assets. This includes physical assets, like transportation containers, or virtual assets, like digital currencies.
“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” Linda Weakland, UPS director of enterprise architecture and innovation, said in a statement. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
Coyote Logistics ranks No. 5 on the TT sector list of top U.S. freight brokerage firms.
More than 300 companies have applied for membership to BiTA.