Blockchain to Drive Growth in Global Refrigerated Sea Transport Industry
Blockchain technology is expected to push the growth of the global refrigerated sea transport industry as more countries adopt the nascent technology for trade.
The growing penetration of blockchain technology in the global refrigerated sea transportation market is seen to push the growth of the industry at more than 4% compounded annual growth rate (CAGR) between 2018 and 2022, said technology research and advisory company Technavio.
In its latest study called Global Refrigerated Sea Transportation Market 2018-2022, Technavio also predicted the growth market to wane because of an eventual and expected decline in year-over-year growth.
A senior analyst for Technavio for research on transportation and distribution commented in a statement:
“Marine transportation includes substantial documentation including charter party agreements, bill of lading, letters of credit, sales contracts, port documents, and others that pass through a long chain of parties. The documentation process in marine transportation becomes an accurate and quick process, offering complete transparency and security due to the adoption of blockchain technology.”
The research team identified blockchain technology as assisting the increased transparency in the industry because distributed ledger technology also reduces the possibility of corrupting or altering data during transactions between two parties. They noted that countries in the Asia Pacific region, particularly Japan and China, had adopted the technology in several industries such as the services and pharmaceutical sectors.
Technavio predicted that nearly 9% of global gross products would adopt blockchain technology by 2025 to secure their data and transactions.
It also noted that the pharmaceutical industry would be the key driver for the growth in the global refrigerated sea transport sector as the industry is increasingly utilizing sea transportation to move products.
They said pharmaceutical manufacturers prefer low-cost shipments caused by rising fuel costs and concerns about carbon emission in air and roadway transportation, in addition to stricter government regulations around the world with regard to environmental issues.
In a related development, blockchain-induced sea transport is expected to get a significant boost as shipping and logistics experts gathered in Shanghai, China in June this year to weigh the benefits of integrating the nascent technology in their sectors.
The experts in the industries discussed in a forum the potential uses of blockchain in their field, noting that cryptocurrencies, one of the products of the technology, show great promise in payment systems.
Also this month, digital marketplace SHIPNEXT has teamed up with decentralized IoT (internet of things) network for next-generation supply-chains Ambrosius to accept AMB coin to boost their security token offering.
The acceptance of AMB coin in the SHIPNEXT ecosystem validates the efficiency and transparency of cryptocurrencies in shipping, global trade and supply chain operations.