When the Sky’s the limit
The Sky Republic Atlas has been designed to create end-to-end digital consensus; instead
of 22 documents being sent 41 times it can reduce this to 22 documents sent just once.
In terms of solutions, shipment and ULD custody, customs clearance and trade fi nancing
have the biggest potential here.
BLOCKCHAIN
can be seen as secured group
multimedia messaging.
Partners can transact,
communicate and be notifi ed
of new business events or
documents through smart
contracts (if authorised, of
course). Overall, it creates an
end-to-end digital consensus,
which is the desirable goal.”
Implementation
Given that the tools are
available, what exactly is
required to implement this in
the cargo sector?
“The problem is that you
can’t do it on your own: you
must have your partners on
board. Also, who is going
to manage and govern the
blockchain platform?
“Many airlines have started
blockchain projects. The
biggest ones may fi nd a ROI
for their own processes but
most initiatives have limited
potential as competitors
simply won’t join them.
SITA, having a neutral
positioning as a co-operative
and having the know-how
from its CHAMP subsidiary, is
kicking off a consortium which
may solve the issue.
“Another problem is
standardisation to ensure
interoperability between
future platforms. BiTA (the
Blockchain in Transport
Alliance) is working on the
problem with a focus on rail/
road at the moment but SITA is
ready to collaborate to expand
its work to air transport.
However, standards will take
years to mature but most
players in the industry want
to get competitive advantage
right now.”
Did he have any indication
about the depth of adoption
by the cargo sector?
“Many proof of concepts
and initiatives have started in
cargo and in adjacent segments
such as MRO and baggage,
but none is currently ready
for production. Enterprise
blockchain platforms aren’t
ready either for a pure
technical perspective.”
The other worry, often
expressed, is that of risk: is
blockchain without risk?
Reports of cryptocurrency
system hacking don’t make for
easy reading.
“Crypto platforms aren’t
without risk,” states Fabre,
“but enterprise blockchains
use the same cybersecurity and
cryptography principles as EDI
or other middleware, so they
are safe.”
To what extent did he
feel that blockchain was the
answer to a sector that has,
traditionally, been lagging in
effi ciency and which has been
(and continues to be) burdened
by excessive paperwork?
“Paper digitisation and
operational effi ciencies are
two of the main drivers for
blockchain in supply chains.
That’s why enterprises are
interested not only in the
cargo but also MRO, which
shares the same issues.”
If, as is widely publicised,
this is the answer to the
sector’s woes, why have not
more players taken it up? Are
there other (better?) options?
“The main roadblocks are
being addressed but there is a
list of subjects that has to be
considered. There needs to be
established a comprehensive
ecosystem of partners willing
to move forward. The right
governance model, in other
words one entity that is
accepted by all, has to be
established.
“Technology must
upgrade; it shouldn’t be a
case of rip and replacing
existing infrastructures; and
the technology has to be
production ready, able to
support EDI formats and so on.
The lack of standards has to be
overcome, too.”
An exciting future
The future, though, is what
is most exciting, according
to Fabre.
“I think EDI solutions
need a serious upgrade to
take supply chains into the
digital 2.0 era. Enterprise
blockchain will integrate
all sources of events and
documents from EDI but also
IoT, Mobile, AI and the cloud.
It can improve bottom lines
but the main driver is about
business acceleration and
competitiveness.
“One problem is that
shippers and consignees
are paying for freight
services today but complain
about lack of visibility, late
notifi cations of disruptions,
speed of transit for cold
chains, and the like.
“Those able to deliver
or support a real time and
integrated digital experience
will gain market share.
“Freight forwarders and
ground handlers, of course,
can thrive – but they will die if
they don’t embrace the shift.
I also believe that physical
Internet or synchromodality/
multimodal approaches
powered by e-commerce
players such as Amazon will
also drive change.
“Ultimately, blockchain
will be one of the
instruments enabling the
coming revolution of the
supply chain.”
Ultimately,
blockchain will
be one of the
instruments
enabling the coming
(r)evolution of the
supply chain
Chris Fabre, Founder and CEO of
Sky Republic
*Chris Fabre is the Founder and CEO of Sky
Republic, an Enterprise Smart Contract
Platform vendor for Air Transportation,
Aerospace and Supply Chain based in
Phoenix, Arizona. Previously, he served
ten years as group CEO and fi ve years as
CTO for Axway, a global leader in B2B/API
enterprise middleware.
24 August 2019 www.airlogisticsinternational.com
/www.airlogisticsinternational.com