Dive Brief:

• The Brussels Airport just launched a new blockchain-based application, called Freight Management App 1.0, to digitize transactions between carriers and third-party logistics providers (3PLs), according to Air Cargo News.
• The app will eliminate the need for physical papers to sign off a shipment's transition of possession from a carrier to a 3PL, according to the airport's head of cargo and logistics Steven Polmans, Air Cargo News reported.
• The new app is the first launch in a series of new apps that will all be connected to the airport's cloud, BRUCloud, to allow more seamless data-sharing and reduce duplicate data.

Dive Insight:

The Brussels Airport's new blockchain-based app is a practical application of blockchain in a sea of hype surrounding the tech's potential and use cases.

Some studies claim blockchain-based tech solutions could save freight millions of dollars every year, but in order to generate any cost-savings, companies and organizations have to start small.

Because the Brussels Airport's app has a simple function as part of a broader tech initiative headed by the airport, its scope is much smaller than the IBM-Maersk project to record all shipping transactions on a blockchain platform, or the biopharma industry's attempts to use blockchain to comply with federal regulations.

Given that multiple industries have struggled to find an industry-wide solution for all partners to adopt, the Brussels Airport's plan to start with a single-function app to aid its carriers and forwarders — similar to Israeli carrier ZIM's plan to use blockchain — could be a more ideal way to test blockchain's compatibility with supply chain processes.

Furthermore, the airport's tech initiative shows the air freight industry ramping up digitization, which industry decision-makers have demanded for some time. The airport's initiative also aligns with the International Air Transport Association's (IATA) push for airports, air carriers and forwarders to "go paperless" as the industry struggles to keep up with rising demand and limited capacity.