Ingredients for the perfect Trade Facilitation masterpiece

Digital Corridor: shaping the global logistics industry

Trade has long been a driving force of economic growth. New production systems, integration of global value chains and trends toward reliance on just-in-time delivery systems mean that more than ever, trade needs to be faster and more reliable. This calls for increasing the quantity and quality of information exchange. Digital connectivity and data flows are supported by hard and soft infrastructure, ranging from cables and wires to data flow regulations, which enable trade transactions.

 

A digital freight corridor between two countries enhances shipment visibility and optimises flow of cargo data. The collaboratively created digital corridor facilitates flow of information within the stakeholder chain and optimises cargo visibility across the stakeholder network. These digital data corridors can evolve from connecting one cargo network like airport community in one country to airport community in the other country. These hubs can connect multiple countries using the simple principle of data federation and trust.

Blockchain-based Digital Air Freight Corridor between Mumbai and Schiphol

Kale has conceptualized and is working in partnership with Cargonaut a cargo community system provider in Netherlands in creating world’s first digital air freight corridor between Mumbai and Schiphol airport. This digital corridor aims at creating a completely transparent supply chain in the first phase through exchange of real-time status of shipments between India and the Netherlands and in the second phase exchange of shipment data to eliminate duplicate processes.

 

Based on the framework of Blockchain and iShare which enables all players in the community to connect with each other on the basis of mutual trust, irrespective of type, size, modality and jurisdiction. iShare is not a technology platform through which data flows; it is a framework of agreements on identification, authentication and authorisation of actors. The framework delivers a transformational level of maturity in the way stakeholders share data with other partners and of partners of partners that they may not know. . The digital corridor will use IATA’s ONE RECORD data format for APIs to exchange data.

 

This pioneering initiative will help to reduce unnecessary administrative paperwork involved in shipment movement between the two countries, thus strengthening and easing cargo and data movement.