Teleport, AirAsia’s logistics division, has launched Freightchain — a world’s first digital air cargo network run on blockchain. Freightchain is a digital network for air cargo run by airlines, born on blockchain. Freightchain offers instant cargo bookings to shippers and freight forwarders.
Launched on April 16, Freightchain allows a shipper or freight forwarder to instantly book and confirm any of AirAsia’s 247 aircraft to carry cargo, without the need to go through traditional time-consuming sales or email channels.
AirAsia claims that Freightchain efficiently discovers all available routings and facilitates on-demand bookings in minutes through bids submitted and validated on blockchain.
Freightchain is built using Hyperledger Sawtooth, an enterprise blockchain platform for building distributed ledger applications and networks, under Linux Foundation’s Hyperledger open source umbrella project that deals in blockchains and related tools.
Interestingly, the first pilot booking on Freightchain was successfully conducted to ship pharmaceutical cargo from Bengaluru, India to Ulan Bator, Mongolia. An instant itinerary via Kuala Lumpur, Malaysia and Seoul, South Korea was confirmed in real-time with flights from three different carriers through a smart contract on blockchain.
Due to the unavailability of direct flights from Bengaluru to Ulan Bator, the shipper had to manually enquire about the availability of connecting flights with multiple airlines and agents over phone calls and emails, a very tedious and time-consuming process. Freightchain simplified the booking process and confirmed the itinerary 10 times faster for shippers by programmatically discovering the available routes with connecting flights within the shipper’s budget and passing on significant cost savings to shippers. For the airlines, the dynamic on-demand interlining of flights helped improve otherwise underutilized flights.