Blockchain Has Potential to Revolutionized Trade Across Borders, Says FedEx CEO
Fred Smith, the founder and chief executive in the logistics group of FeEex, said that blockchain technology can reduce lots of frictions that block cross-border trade. Today, he made a presentation at the 2018 meeting in New York, Smith likened the potential of the blockchain to the origins of the tracking system that Fedex launched decades ago.
“In the early 1970s, shipment was delivered to the shipping company or the postal service, and we waited and hoped to ship the goods at the other end. Therefore, we introduced the tracking system, initially because we needed it for internal operations, but later we realized that these information are very valuable to our customers.”
He said that the relevant information was obtained through the Internet, allowing clients to check the progress of their packages or containers several times a day. It is a monitoring system that keeps these records in an unchanging manner. This is very important for the supply chain and the entire transportation industry.
He added that:
“The biggest problem in the global supply chain operation is cross-border, because different country has different classification standards, regulations, and terms. FedEx operates in 220 countries and each batch of goods must be inspected several times and accompanied with form filling and delay, therefore, classification error is a common problem.”
The contraband issue is particularly pertinent, too. If you got a container that says it's full of semiconductors but in fact is full of fentanyl you got a big problem, said Smith, adding that blockchain technology could reduce this friction by increasing transparency.
"Today you only get what one party wants to make it available, but Blockchain will make information available to all the parties for the first time ever" he added, "blockchain has a potential to revolutionize trade across borders."
Executive editor： Marie