In the coming 5-year period effective from 2018 to 2022, a research forecasts that the global sea freight forwarding industry under Blockchain-powered networks will surge. The report further discloses that the compounded annual growth rate for the entire period under review will be by an exceptional 3%.
Shipment Industry Is Becoming Sophisticated
The study by Technavio reaffirms the long-held beliefs in the import-export community about a steadily rising need for intermodal freight transportation. Fortunately, Blockchain technology will be at the center of the disruption as it will be offering ecosystems of higher quality to accommodate the ballooning global sea freight forwarding market that demands nothing less than efficiency.
In regards to the growing popularity of intermodal systems of shipping, this trend is emerging to cut haulage costs and time. This is done by simply applying various means of shipping such as rail, sea transportation mode and even road use, hence the term ‘intermodal’. The means of haulage are to be used simultaneously or complementary for optimal benefits.
Blockchain Technology Will Play A Central Role In The Industry-Wide Revolution
Distributed ledger technology systems make use of a string of cryptographically secured records to showcase the details of transactions to all concerned and involved parties. The significance of the technology is that the records entries can be easily distributed across a very large ecosystem built on a network of nodes that transcend boundaries and barriers. Hence, the most outstanding significance of Blockchain-based system is that there is the elimination of centralized command centers-Decentralization has been proven to eliminate backlogs to enhance speedy execution of transactions.
Additionally, Technavio also reaffirms that Blockchain technology automates the management of records to enhance efficiency and reduce operational and management costs for shipments.
From the growth perspective, Blockchain technology will have a significant impact in the industry which will most likely lead to a surge of 3% in the period between 2018 and 2022. On the other hand, the possibility of DLT leading to losses is highly unlikely.
To bring clarity into the report, one senior analyst at Technavio singled out the nascency of Blockchain technology in both itself and the in maritime transportation application as the make or break of the futuristic industry. However, drawing examples of numerous testing and successful application of DLT in the industry, the analyst predicts that the popularity of the emerging technology will only surge and grow the vital industry.
Global Sea Freight Forwarding Market Is Shifting To FCL And EMEA
The forwarding market for sea freight is segmented by geography and service. Geographically, global regions include EMEA, APAC, and Americas while service comprises of full container load (FCL) and less-than-container load (LCL). The FCL and EMEA will be dominating the global scene in the period and much of the growth will be attributed to Blockchain technology applications.
Technavio Is A Competent Research Firm
Technavio is a London-based advisory and global fintech research company. It studies emerging market trends to provide insights for enterprises to adopt efficient technologies in developing better business strategies.
Meanwhile, the EU is planning to fund Blockchain and AI projects across the EU according to Aaron Farrugia, parliamentary secretary for EU funds.