Technologies that are Revolutionizing Global Trade Service
Prices of commodities and crude oil, shortage of semiconductor chips, as well as global supply chain issues have prominently been in the news in recent times. Trade wars, import and export restrictions, and more have been causing a considerable amount of unrest around the globe.
Obviously, not a positive sign that we all expect to witness regularly.
Or, is it?
Amidst all this, there is a big positive that has been coming around for quite some time in the global trade service scenario, and that’s the kind of technologies arriving on the scene.
Technologies have been at the helm of the Fourth Industrial Revolution, and they are more advanced than it was expected of them ever being. These technologies have completely changed the face of international trade, and have been pivotal in boosting the overall process efficiency and inclusivity.
Technology & Trade Disruption
Be it global trade banks to multiple trade finance solutions, disruptions due to technology are not something new. While the First Revolution involved the steam engine and it made the globe accessible for everyone, irrespective of the geographical location.
Shipping containers, OCR, QR codes, and scanners for these codes came later. To add to it all, trade document examination and management have also become digital, bringing further enhancement to the reliability and efficiency of trade operations.
Trade documents were being prepared before the advent of digital commerce, and every transaction involved lengthy documentation that involved trade banks and financial regulations to be taken care of before the transaction could go through.
Here’s Where it Changed
Despite everything that’s been happening, it’s a comforting thought that things are on their way for change. Technologies have been arriving at the scene pretty quickly, and their implementation in the right direction has the potential to completely change the way trade service works and resources get allocated in industries. Be it international companies or even the governments involved need to be perfectly aware of such technologies to stay ahead of the trends
Here’s a look at the technologies that are disrupting the global trade management scenario-
1- Machine Learning & Artificial Intelligence
With predictive analysis the biggest feature of Artificial Intelligence and Machine Learning, they can be used to track optimum shipping pathways, ensure traffic management at ports, and also help with the translation of search queries from one language to another, depending on the prevalent language at the geographical location of the search query.
Blockchain has become second nature to almost every digital finance activity in the present day. Any other technology related to it as a distributed ledger system has a big impact on global trade banks and other related financial institutions associated with a typical trade service.
Many trade organizations have started focusing on leveraging innovations in Blockchain technology to take care of global trade service issues like increasing costs as well as lack of security and transparency in the global trade sector.
Other than better efficiency and goods’ movement, trade finance is becoming easier as each day passes by. The best instance to explain the use of Blockchain is simplifying the process of getting a Letter of Credit(LoC), which is one of the most important
3- 3D Printing
3D printing is a pretty debatable piece of technology if truth be told. While a lot of people believe that cheap 3D printing will eliminate a significant amount of manual workforce and also cut down the need for high imports.
On the contrary, there’s also a school of thought that feels it’s a little too much on the positive side of things, and that things won’t exactly be this hard with 3D printing in rage.
We won’t go into what’s going to happen or not, but we know one thing for sure- 3D printing is a highly disruptive technology that will make its impact felt undoubted.
At the Close
Global trade service is undergoing a situation of flux, and the technologies mentioned above are making this change felt in a significant magnitude. With all of them an important constituent in the Fourth Industrial Revolution, it’s surely going to be interesting to see what lies ahead in the future for them.
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