Blockchain Technology Effects on Logistics Sector?

What blockchain improves

• Single source of truth for documents: Electronic bills of lading (eBL) and cargo release on shared ledgers cut courier delays, fraud risk, and disputes. Nine major carriers (via DCSA) pledged 50% eBL by 2027 and 100% by 2030, a big push toward paperless trade. DCSASupply Chain Dive

• Traceability & provenance: Immutable event chains help prove origin, custody, and condition—useful for perishables, pharma, and regulated goods. Studies and industry reviews link blockchain to better traceability and admin cost reduction. World Economic ForumDeloitte

• Operational metrics: Peer-reviewed work finds blockchain adoption can reduce lead times and inventory levels in the near term and lower costs longer term. Taylor & Francis Online

Where it’s working now (with examples)

• eBL + cargo release platforms: Active rollouts through consortia like GSBN (carrier members, ports, and shippers) are issuing blockchain-backed documents and certificates; adoption continued through 2024–2025. GSBNasiacargonews.comsponsored.bloomberg.com

• Legal tailwinds: The UK Electronic Trade Documents Act (2023) gives e-trade docs—like a bill of lading—the same legal status as paper, a key enabler for blockchain workflows. Expected benefits include faster trade and lower costs. Hill Dickinson

• Industry scale targets: DCSA estimates multi-billion-dollar annual savings once eBL hits scale (e.g., 50% adoption). myKN

What hasn’t worked (and why)

• Network effects are hard: Maersk and IBM’s TradeLens shut down in 2022 despite viable tech—because broad, neutral industry participation (the real unlock) didn’t materialise. Lesson: Governance and incentives matter as much as code. Maersk+1Shipping and Freight Resource

Practical ROI levers to target

• Document cycle time: Replace couriered originals with eBL; measure time saved, demurrage avoided, and dispute rate. (Benchmark against DCSA goals.) DCSA

• Exceptions handling: Use shared data to pre-clear or triage anomalies at ports and warehouses; track reduction in manual touches. Deloitte

• Compliance & sustainability claims: Verifiable certificates (e.g., low-carbon shipping attestations over GSBN) can speed audits and support green premiums. GSBN

Buyer’s checklist (make this real, not a pilot)

• Governance first: Who runs the network? Who can see what? What happens if a member exits? (TradeLens shows why this matters.) Maersk

• Interoperability: DCSA eBL standards support portability across carriers and platforms—insist on them. DCSA

• Jurisdiction & legality: Confirm e-document recognition (e.g., UK ETDA) on your trade lanes and your bank’s willingness to accept eBL for trade finance. Hill Dickinson

• KPIs: Lead time, inventory days, dispute rate, manual touch count, demurrage/detention, and document processing cost per shipment. Tie payment to improvements.

Bottom line

Blockchain’s biggest logistics wins today are paperless trade (eBL/cargo release) and trusted, shareable traceability—with measurable gains in speed and fewer disputes. The tech isn’t a silver bullet, but paired with industry standards and enabling law, it’s moving from pilot to production on specific, high-friction workflows. Focus on networks with clear governance, legal recognition, and hard KPIs to capture real ROI.

Changing or adding information to the “chain” requires the authentication of everyone who is in the network and this means that blockchain is extremely secure

However, it is still being explored, and the logistics sector is one area that is looking to exploit its power. Here, we examine the fundamental principles behind blockchain and ask how blockchain technology is revolutionising the logistics sector.

Blockchain is basically a digital ledger that is shared by a network of individuals around the world and that came about from work carried out in the mathematical discipline of cryptology. That is to say, the information stored in blockchain is encrypted.

(Source: blog.businesscasestudies.co.uk)