Blockchain is the technology that makes all export and import operations much more efficient thanks to the advantages of having no intermediaries, being faster, with lower costs and more secure.
Advances in Foreign Trade and the Shipping Industry
Blockchain technology is reaching foreign trade in leaps and bounds at an extremely fast pace and this is due to the positive impact on the optimization of the sector’s operations. The actors involved in commercial transactions have already begun to measure the benefits in terms of time and cost savings.
The new benefits are not only visible, but also invisible, such as loading and unloading downtime, possible delays in distribution or labor contingencies that cause inefficiency and uncertainty that delay operations and make the various sections of the chain more expensive.
In foreign trade, one out of every five dollars of the logistical cost is spent on paperwork. Avoiding this would drastically reduce the time and increase the activity by 15% per year worldwide.
According to studies by The United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) in paperless operations, exports could increase by $257 billion annually worldwide, while the average time to export would be reduced by 24 to 44 % and the cost of shipping by 17 to 31 %.
For Latin America, in the case of Argentina, according to the World Bank, an average export takes 4 days to load the documentation and comply with customs formalities, at a cost of approximately $210. In imports, the delay in documentation and procedures is 10 days and costs an average of 1400 dollars.
What Makes Blockchain a Solution for Everyone?
Faced with a reality like that of Argentina or the rest of the world, blockchain offers a collaborative, shared, inviolable and traceable technology in each of its registers. It is an agreement between parties to share a digital protocol along a chain. It is translated as an automated system that involves intervening agencies, customs, shippers, dispatchers, carriers, forwarders, terminals, shipping companies, banks and insurers in an efficient way.
While the advantages of blockchain technology are already being seen in the stock market, which is improving every day, this may be the best time for its benefits to be adapted by all other sectors of the trade and notice the benefits.