Could the logistics industry miss out on network effects?

Several leading industry players discussed logistics at this week’s London Blockchain Expo conference. When it comes to blockchain, the industry is different from others for many reasons. It’s highly fragmented. It’s likely there will be a large number of relatively narrow blockchains. If the systems don’t interoperate, the industry will lose the benefit of blockchain technology network effects. One solution is for each buying industry, like the car industry, to form a supply chain alliance.

Competition

Marine Transport International (MTI) has been working in the blockchain sector for a couple of years. CEO Jody Cleworth outlined some of the challenges. “The transportation industry, particular container logistics and shipping, is probably one of the most distrusting industries in the world. Look at the benefits: some of the cost savings we’ve unlocked simply on the landside supply chain is up to 90%. These companies want to keep it for themselves. The sooner you give the technology or the IP to your competitor they’ve got the exact same cost base.”

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