Logistics: What is Happening in the World?
Friday, March 16, 2018
Valued at almost €2.7 trillion, the international logistics and transport market is the backbone of the world economy. With road trade taking up bulk of the portion followed by sea transport, logistics whether inter-city or across continents, holds a significant place in the economy of every country in the world. Investing in logistics and developing infrastructure is considered extremely crucial. This has been emphasized by China’s $1 trillion ‘one belt – one road’ project, an initiative that will connect Asia to the entire European and African region giving international trade a much needed boost.
Considering the magnitude of the industry, developments occur on a regular basis and it is important to keep tabs on them.
The Introduction of Blockchain in Logistics
The Danish shipping giant, Maersk has partnered with IBM to develop a blockchain based system for handling shipping documents. Blockchain is the underlying technology for cryptocurrencies like Bitcoin. It has surprised the world with its effective utilization of Decentralized Ledger Technology to record and store data in immutable forms. Blockchain significantly lowers transaction costs by eliminating the need of a middleman and cuts transaction times down to a few minutes.
Shipping and logistics have always involved immense paper work which is prone to human errors, fraud and is extremely time consuming, making blockchain the ideal alternative for the industry to boost operations around the globe.
The New Tesla Electric Truck
Talking about cutting costs, Elon Musk led tech giant, Tesla revealed its range of electric trucks at an event on November 16. The fully electric semis are equipped with state of the art technologies like active lane change assists and self driving capabilities. Major companies have already placed orders for the futuristic trucks which are expected to start delivering in 2020.
The concerns for the environment and strict regulations have forced automotive manufacturers to try combinations of petrol engines and electric motors or completely electric cars to reduce emissions. The plus point with these vehicles is that they cut costs drastically.
India’s Logistic Industry Gets Infrastructure Status
India is one of the largest economies in the world today therefore any new emerging from the country has to significant impact on global markets. The country’s Department of Economic Affairs recently issued a notification to include logistics and transport into the infrastructure sector allowing associated companies, access to a wider range of financial services and fund raising opportunities through loans and foreign investment.
Logistics and infrastructure are inter-linked because facilitating trade and logistics requires investment in developing roads, tunnels, bridges, settlements etc. China’s ‘one belt – one road’ or Silk Road Economic Belt also focuses on building relevant infrastructure to facilitate trade between this corridor.
With the market fluctuating and new developments happening every now and then, China’s Silk Belt Economic corridor, the introduction of blockchain to speed up transaction times for shipping companies and electric trailer trucks there is never a dull moment within this sphere and staying updated is imperative irrespective of what industry you might belong to.
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