Information, communications and technology company, Société Internationale de Télécommunications Aéronautiques (SITA), says it is working with a trade association to harness blockchain to track pallets or containers used to load luggage, freight, and mail on aircraft known as unit load devices or ULDs in the industry.
SITA and the trade association ULD Care say that tracking ULDs through blockchain can potentially curb trade-based money laundering (TBML) and other crimes and save the industry US$400 million.
The two parties hope to bring new efficiencies to the air cargo industry by exploring the use of blockchain to digitally track and record change of custody of airline cargo containers or ULDs across their journey.
The proposed platform also offers a wide range of authentication and trust-based benefits that should reduce the risk of TBML, tampering, cybercrime, and illicit trade.
By eliminating inefficiency, embedding always-on tracking of ULDs and abandoning redundant paper systems, the use of blockchain is expected to save the industry US$400 million a year in improved efficiency, fewer losses and prevention of damage according to a statement by SITA.
Today more than 800 million ULDs are in use by airlines yet the system used to track these ULDs has only been partially digitalised and relies on incomplete data sharing and record keeping.
The proposed blockchain system improves efficiency by making use of all data points across the air cargo journey and provides a platform that aggregates and processes the ULD data in a trusted and secure way.
Categories: Trade Based Financial crimes News