The decentralized logistics platform allowed the shipper and carrier to directly connect, negotiate rates, and schedule pickup and delivery.
On Oct. 15, Preferred Freezer Services shipped 5,320 pounds of frozen food from Medley, Florida to seafood distributor Manny’s Enterprises Inc. in Sunrise, Florida using a blockchain-based logistics platform.
The shipment was the decentralized logistics platform dexFreight's first first blockchain-based shipment using smart contracts. The platform, which envisions an ecosystem of open source protocols, blockchain and machine learning technologies, allowed the shipper and carrier to directly connect, negotiate rates, and schedule pickup and delivery.
For this first truckload shipment, dexFreight partnered with Netuno USA, one of the fastest growing seafood wholesalers, Arel Trucking Inc., an asset-based motor carrier with over 180 trucks, and RSK, the first smart contract platform secured by Bitcoin. Funds for the transaction were held in escrow by the smart contract on the integrated RSK platform and were automatically released to the carrier upon delivery.
“This is a huge milestone toward an imminent transformation of the logistics industry through the adoption of blockchain technology,” says Rajat Rajbhandari CEO and co-founder of dexFreight. “Our platform aims for a truly decentralized model, open to all the stakeholders, and allowing for a new world of services that will bring much needed optimization and liquidity to this industry.”
dexFreight offers the industry's first blockchain-based verified identity and objective reputation system derived from smart contract data and key performance indicators (KPIs) such as on-time pick-up and delivery, on-time payments, loading and unloading times, freight claims, and more. With this data readily available, the company says shippers and third parties can streamline the carrier onboarding process while reducing associated liability risk.
“With the use of smart contracts, companies like dexFreight can transfer value and assets between parties on our platform,” says Diego Gutierrez, CEO of RSK. “With a defined set of rules, in this case for logistics, all participants know that their business needs will be fulfilled without anyone altering their agreement or changing the rules.”
In addition, with up-to-date profiles in the platform, including all required and relevant documentation such as licensing, insurance, safety and performance records, and credit history, counterparties will be automatically qualified based on unique business requirements, issuing alerts or even preventing transactions when qualifications drop below designated thresholds.
“With dexFreight, we have transparency into loads we’re shipping all over the U.S. based on honest and accurate information that is beneficial for our operation and our customers,” adds Luciano Bonaldo, president and co-founder of Netuno USA Inc.
Further, Robert J. Julia, CFO of Arel Trucking, says “dexFreight solves the issue of false documentation by making our transactions with shippers completely transparent, and so we can get paid for the service we provided. This technology is the way of the future for the whole trucking industry.”