FedEx Develops Logistics Standards with Blockchain

FedEx has initiated efforts aimed at integrating platforms that are based on blockchain to its daily logistics operations by becoming a member of BiTA – Blockchain in Transport Alliance. According to reports the transport and logistics firm is currently involved in the development of industry standards and has already undertaken tests of some blockchain platforms.

As a founding member of BiTA, FedEx is also involved in setting standards for the body. According to the analysis and strategic planning vice president, Dale Chrystie, a pilot program has already been launched by BiTA which employs blockchain in storing data for the purposes of dispute resolution. The goal of the project is to determine what kind of data is required on a permanent ledger for the purposes of easing disputes between clients sending as well as receiving goods via FedEx.

Chrystie also added that blockchain will be used the shipping giant in the storage of its records. “We have millions of records a day in our system, and we think of blockchain as a secure chain of custody that could transform the logistics industry. We believe it holds a lot of promise in that space…" said Chrystie.

Additionally blockchain would allow customers of the shipping giant to track packages more efficiently. This will occur not just when they are in the possession of FedEx but also prior to being picked up and even after they have been picked up by the shipping giant. More use cases are expected to emerge as blockchain technology gets increasingly deployed.

Started last year in August, BiTA has served as a forum for promoting, educating and encouraging the development and adoption of blockchain applications in logistics, transportation and trucking sectors. The goal of the body is to ensure that industry standards are created and adopted with regards to blockchain applications so as foster trust and ensure transparency and efficiency. Per research firm Gartner, blockchain’s value-add is expected to be more than $3 trillion globally by 2030.

Other players in the transportation, trucking and logistics sectors who have recently joined BiTA include Tennessee-based transportation and logistics insurer, Reliance Partners. According to the president and chief operating officer of Reliance Partners, Chad Eichelberger, by joining BiTA the insurance firm will position itself for the future as blockchain technology is expected to be highly disruptive.

Another firm that has joined BiTA is Atlanta, Georgia-based American Global Logistics, a supply chain firm.