DA NANG UNIVERSITY OF ECONOMICS

THE FACULTY OF INTERNATIONAL BUSINESS



GROUP REPORT
MULTIMODAL TRANSPORT

Topic

APPLICATIONS OF INTERNET OF THINGS AND

BLOCKCHAIN IN MUTIMODAL TRANSPORT

Lecturer : Pham Thi Be Loan

Class : 47K01.4

Group 2 : Ho Le Ngoc Han

: Doan Thi My Hien

: Tran Thi Kim Luyen

Da Nang, 2024
Multimodal Transport

TABLE OF CONTENTS
I. OVERVIEW......................................................................................................1

II. BLOCKCHAIN.................................................................................................1

1. Definition..........................................................................................................1

2. Application of Blockchain in Multimodal Transport.......................................2

2.1. Cybersecurity Threats................................................................................2

2.2. Blockchain-Based Traceability for Shipping Containers...........................4

2.3. Electronic Bills of Lading..........................................................................8

III. INTERNET OF THINGS (IoT).....................................................................13

1. Definition........................................................................................................13

2. Application of IoT in Multimodal Transport..................................................13

2.1. Tracking and Monitoring.........................................................................13

2.2. Managing Asset........................................................................................14

2.3. Automating...............................................................................................15

2.4. Predicting and Operational Efficiency.....................................................16

2.5. Sustainable Development.........................................................................16

IV. SOLUTIONS TO PROMOTE TECHNOLOGY DEVELOPMENT FOR

MULTIMODAL TRANSPORT............................................................................18

1. Boosting Investment in Research and Development (R&D)..........................18

2. Creating a Favorable Environment for Innovation.........................................19

3. Establishing a Strict Legal Framework...........................................................19

4. Promoting Awareness and Skill Development...............................................19

5. International Cooperation...............................................................................19

V. CONCLUSIONS.............................................................................................20

VI. REFERENCES................................................................................................21

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LIST OF FIGURES
Figure 1. System architecture for blockchain-based shipping containers providing
trusted traceability and documentation.......................................................................6

Figure 2. Benefits of applying blockchain to marine bills of lading........................10

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ABBREVIATES

ABP The United Kingdom's Associated British Ports

AGV Automated Guided Vehicles

AI Artificial Intelligence

B/L Bill of Lading

BT British Telecommunications

CID Content Identifiers

IoT Internet of things

IPFS InterPlanetary File System

MPA the Maritime and Port Authority of Singapore

PIL Pacific International Lines

RCM Maersk's Remote Container Management

UCC Uniform Commercial Code

UK The United Kingdom of America

UNCITRAL The United Nations Commission on International Trade Law

USA The United States of America

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I. OVERVIEW

In today's interconnected world, the seamless movement of goods across

various modes of transportation is essential for global trade and commerce.
Multimodal transport, which involves the integration of multiple transportation
modes such as marine, air, road, and rail, offers unparalleled efficiency and
flexibility in meeting the diverse needs of modern supply chains. However, the
complexity inherent in multimodal transport operations often gives rise to
challenges related to transparency, security, and efficiency.

In recent years, technologies such as Blockchain and the Internet of Things

(IoT) have emerged as game-changers in the realm of logistics and transportation.
Blockchain, with its decentralized and immutable ledger system, offers
unprecedented levels of transparency, traceability, and security, making it an ideal
solution for addressing the inherent trust issues in supply chain management. On the
other hand, IoT devices, equipped with sensors and connectivity capabilities, enable
real-time monitoring and data collection throughout the transportation process,
thereby enhancing visibility and control over cargo movements.

Through this essay, we will explore the applications of Blockchain and IoT in
multimodal transport. Our aim is to provide insights into the transformative
potential of these technologies and their implications for the future of global
logistics and trade.

II. BLOCKCHAIN

1. Definition

Blockchain technology is an advanced database mechanism that enables

transparent sharing of information within a business network. Blockchain databases
store data in blocks linked together in a chain. It is characterized by features such as
transparency and irreversibility of transactions, identity preservation, and permanent
and tamper-proof storage of data. The data has chronological consistency because
you cannot delete or modify the chain without network consensus. Therefore, you
can use blockchain technology to create an immutable ledger to track orders,
payments, accounts, and other transactions. The system has built-in mechanisms to

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prevent unauthorized transaction entries and create consistency in the overall view
of these transactions [1].

Unlike traditional databases that store data in tables and files, blockchain
stores data in digitally chained blocks. It is a decentralized database managed by a
peer-to-peer network instead of a central computer like in traditional databases [2].

2. Application of Blockchain in Multimodal Transport

2.1. Cybersecurity Threats

Maritime transportation stescalating crucial role in the economic vitality of

numerous regions worldwide. The surge in global population, elevation of living
standards, and the dissolution of trade barriers all fuel an escalating dependence on
this industry. Particularly in regions endowed with navigable waterways or
encompassing archipelagos, maritime transportation forms the lifeblood of both
domestic and international trade. Furthermore, in markets advocating for sustainable
development, cost-efficiency, and increasingly, eco-friendly operations, the
maritime sector shoulders the responsibility for ferrying 90% of all goods. Recent
strides in the realms of Internet of Things (IoT), Big Data, and Artificial
Intelligence (AI) have initiated a shift towards more digitalized maritime
infrastructures, thereby necessitating a reevaluation of cybersecurity measures.
Moreover, the interconnectivity and reliance on intelligent devices has become a
double-edged sword, fueling the rise of cybercriminal activities such as social
engineering, identity theft, phishing attacks, and spam emails. Safeguarding the
integrity of next-generation maritime infrastructures has become an urgent
imperative [3].

Cybersecurity poses a mounting concern within the maritime domain, given its
potential ramifications for critical facets of maritime operations, spanning cargo
handling and management, passenger services, crew welfare, and machinery
control, among others. As technological innovations and internet-connected systems
proliferate in shipping, the identification and mitigation of cybersecurity risks
become imperative. Notably, cybersecurity in the maritime industry assumes
heightened significance with the rapid development of remote pilotage systems and
autonomous vessels. Projections indicate that by 2030, fully autonomous vessels

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could traverse the seas, underscoring the vulnerability of such complex systems to
cyberattacks. Secure gateways between remote vessels, fairway sensors, and
pilotage systems become indispensable, with data confidentiality, availability, and
integrity warranting assurance [4]. The advent of IoT systems introduces a plethora
of potential attacks, ranging from denial-of-service (DoS) to authentication
tampering, thereby jeopardizing the integrity of remote pilotage systems. These
vulnerabilities, if exploited, could precipitate dire consequences, including financial
losses, reputational damage, and environmental harm [5].

APM-Maersk experienced a significant disruption lasting several weeks due to

a Ransomware/wiper attack, known as NotPetya, in 2017. Similarly, COSCO faced
weeks of downtime in July 2018 following a ransomware attack. In April 2020,
MCC fell victim to an unnamed malware strain that incapacitated their data center
for several days. Additionally, CMA CGM recently suffered an attack by the
Ragnar Locker software, resulting in the shutdown of its worldwide shipping
container booking system following incidents at its Chinese branches in Shanghai,
Shenzhen, and Guangzhou [6]. Furthermore, in 2023, Nagoya port, Japan's largest
international seaport located in Aichi prefecture, experienced a ransomware attack
[7]. In November 2023, DP World Australia, the country's second-largest seaport
operator, ceased operations in several states for several days due to a cybersecurity
incident, significantly impacting the transportation of goods [8]. These incidents
underscore the urgent need for robust cybersecurity measures to safeguard the
integrity and continuity of maritime operations. Against this backdrop, as
autonomous ships transition from experimental stages to operational deployment,
ensuring the security of communication systems and data assumes paramount
importance. In this context, the exploration of blockchain technology emerges as a
promising avenue to bolster the security of autonomous vessel control. By
leveraging blockchain's decentralized architecture, schemes can be devised to
fortify authentication systems and establish secure communication channels,
mitigating the risk of unauthorized access and data tampering. Furthermore,
blockchain's immutable ledger offers a trusted repository for logging events,
enhancing transparency and accountability in maritime operations [9].

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Blockchain technology, renowned for its decentralized architecture and
tamper-proof ledger, has found applications beyond financial realms, extending into
industries like energy, transportation, and identity management. By leveraging
blockchain, the maritime sector can fortify communication channels, authenticate
messages, and establish secure logs of events, thereby mitigating the risk of cyber
intrusions. While blockchain presents a compelling solution to combat cyberattacks,
its efficacy is not without limitations. Notable incidents like the attack on Ethereum
Classic underscore the susceptibility of blockchain networks to exploitation.
Despite its inherent security features, blockchain remains susceptible to novel attack
vectors, necessitating ongoing research and refinement. Nevertheless, private and
permissioned blockchains configured with stringent security protocols offer
formidable defenses against cyber threats, albeit with room for improvement. As the
maritime industry embraces digital transformation, fortifying cybersecurity
measures, including the integration of blockchain technology, will be pivotal in
safeguarding against evolving cyber threats and ensuring the resilience of maritime
operations in an increasingly interconnected world [4].

In conclusion, cybersecurity in maritime transportation demand proactive

measures to mitigate evolving threats. While blockchain technology presents a
compelling solution, its deployment must be accompanied by stringent protocols
and continuous monitoring to fortify the industry's resilience against cyber attacks.

2.2. Blockchain-Based Traceability for Shipping Containers

Maritime shipping stands as a fundamental pillar of globalization and plays a

critical role in international trade. Seaborne transport alone accounts for 90% of all
globally transported commodities and 70% of global trade value, with containerized
cargo representing half of all sea-based shipments. This is due to the flexible
transportation options available for container movement, potentially reducing costs
and transit times. However, the maritime industry is complex, with multiple parties
involved, each with their own customs and shipment handling processes. Trust is
essential in such an environment, yet stakeholders are hesitant to share data due to
industry competition, leading to container losses and shipping delays. Another
challenge is the lack of reliable real-time visibility into freight status throughout the
shipment process, resulting in disputes and higher costs for all parties involved. As
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the volume of shipped goods and the industry's involvement in critical sectors like
healthcare grows, the incidence of mislabeled, lost, and counterfeit cargo also
increases. In the USA alone, losses in the cargo industry due to mislabeling, theft,
and lost shipments amount to $50 billion annually, equivalent to $40 per person
daily. Paperwork-related delays extend waiting times, contribute to terminal
congestion, and increase delivery times, particularly affecting time-sensitive and
perishable shipments. Additionally, paper-based documents are prone to forgery,
data inconsistencies, incomplete information, and human error. Although the
introduction of electronic bills of lading has reduced fraud rates, it remains insecure
due to the possibility of creating indistinguishable duplicates of the document.

A solution is required to track freight and its associated processes

transparently and securely. Blockchain has the potential to address the
aforementioned challenges in shipping logistics. With its decentralized governance,
blockchain can guarantee the traceability, transparency, and security of transactions
among participating stakeholders, thereby enhancing trust among them.

Blockchain operates based on a distributed network model, where each block

of data added to the chain requires consensus from all network nodes.
Simultaneously, these data blocks are replicated across all nodes in the network.
The larger the network, the higher the reliability, but this also leads to increased
data replication and consensus requirements. Consequently, to enhance reliability,
Blockchain must balance storage space and processing speed. To leverage
Blockchain's effectiveness, data recorded on the network should be concise and
meaningful, typically transaction information.

To maximize the benefits of Blockchain, applications utilizing Blockchain

technology often categorize data into two types: on-chain data and off-chain data.
On-chain data refers to information stored directly on the Blockchain network,
typically short and meaningful data such as identification codes or events generated
during business process transactions. Off-chain data, on the other hand,
encompasses large and mutable multimedia data generated during the execution of
the service or application's business processes. When integrating Blockchain into a
traceability system, the current data of the system is considered off-chain data,
while on-chain data is utilized for authenticating information. This includes
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elements like identification codes for off-chain data (text, images, audio, video
about the product), as well as transaction history within the system, such as
activation codes and additions, edits, or deletions of product information [10].

Taking advantage of this traceability feature of Blockchain, Feruz Kiflay

Elmay, Khaled Salah, Ibrar Yaqoob, Raja Jayaraman, Ammar Battah, and Yassine
Maleh have researched the application of blockchain to traceability of containers in
multimodal transport [1]. Ethereum smart contracts are utilized to control the
shipping container processes in the downstream supply chain flow. By allowing the
people involved to follow the container's progress in real-time, the approach
encourages transparency. Figure 1 gives a summary of the suggested solution.
Through the use of a decentralized application, the stakeholders interact with the
underlying smart contract. All the necessary documentation is kept in IPFS, and the
blockchain records every stage of the procedure.

Figure 1. System architecture for blockchain-based shipping containers

providing trusted traceability and documentation.

The exporter uses the requestShipment() function to submit a request, which

starts the complete shipping procedure. After submitting a request, an event
broadcast on the blockchain network announces the relevant parties of the details of

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the request, including origin, destination, content, size, and the receiver’s address.
The freight forwarder then makes arrangements for either unimodal or multimodal
transportation based on the information gathered. The freight forwarder uses the
function createMultimodalContainerShipment to build an instance of a multimodal
container shipment if the proposed shipment calls for ocean haulage. The bill of
lading is issued utilizing the same function as in the unimodal shipment after the
necessary documents have been verified. IPFS is where the issued bill of lading is
stored. For future viewing and checking, the uploaded document's CID is kept on
the blockchain. The transportation procedure is started when issueBoL() is run. The
next carrier calls the approveCarrierRequest() function to grant the request of the
first carrier. For the number of carriers involved in export haulage, this operation is
repeated in a loop. The function broadcasts an error event and reverts the approval
request if the approving carrier is not an authorized carrier.

Upon arrival at the origin port, the container undergoes handover to the port
operator facilitated by the containerHandoffRequest() function. This action starts
export customs clearance and alters the container's status to prevent further
modifications until customs clearance is confirmed. For direct shipments, once
export customs clearance is secured, the container is loaded onto the vessel for
transportation to the destination port. Conversely, if transshipments are required, the
container is conveyed to an intermediary port where a transshipment permit is
issued by a customs officer utilizing the transshipmentPermit() function. The
container proceeds to the subsequent sea carrier upon issuance of the transshipment
permit. Events involving unauthorized participation in document issuance or
approval are duly noted through error event broadcasts to the network and
subsequent request refusals. The export haulage operation is repeated at the
destination port. Lastly, the shipmentReachedDestinationSignal() function allows
the importer to verify the delivery and informs all parties involved of the container's
safe arrival at its intended location.

Their approach facilitates container traceability by publicly sharing the

procedural flow as events and recording them on the blockchain. The container's
status is updated with each accurately executed function, creating a chain of events
that serves as an audit trail for participants. Moreover, this trail ensures data

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integrity through transaction authenticity and the immutability provided by the hash
mechanism.

A blockchain system ensures the traceability of shipment containers in both

single and multiple transport modes, operating in a decentralized, transparent,
dependable, auditable, secure, and trustworthy manner. Through the utilization of
IPFS, blockchain technology facilitates secure storage and retrieval of data off the
main chain, addressing the storage limitations typically associated with blockchain.
Ethereum smart contracts streamline the issuance and validation of documents
securely and automatically. Evaluation findings demonstrate that the proposed
approach is economically viable and reduces unforeseen expenses in the existing
shipping procedures. Security analysis confirms the solution's resilience against
security threats and attacks.

The utilization of blockchain technology in the maritime industry and shipping

container supply chain is still at an early stage because of the limited development
of blockchain, insufficient implementation knowledge, and the intricate nature of
the shipping sector.

2.3. Electronic Bills of Lading

The Bill of Lading (B/L) is a transportation document for goods by sea which
is issued, signed, and provided to the shipper by the carrier in which the carrier
confirms receipt of a certain quantity of goods for shipment by sea and commits to
delivering these goods to the person entitled to receive them at the destination port
in good quality and in the quantity stated on the receipt. The B/L is a crucial
document about the obligations between the shipper and the carrier, between the
shipper and the consignee. It serves as proof of goods transactions, proof of a
contract of carriage.

Due to its significance and high value, the original B/L is typically sent
securely from the shipper to the consignee. However, transporting the B/L
physically on paper has several limitations [11].

Firstly, there is a discrepancy in the timing of the bill of lading (B/L) arrival
compared to the goods. The average transit time for a B/L ranges from 5 to 10 days
[12]. Sometimes, the transportation of goods (from port to port) is faster than the

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process of transferring the B/L (from place of origin, transportation by courier to
consolidation point, air transportation to destination, then courier delivery to
consignee). Furthermore, the bill of lading is transferred back and forth to many
places, specifically: House B/L is transferred from Shipping Line to Freight
Forwarder, Master B/L is transferred from Freight Forwarder to Shipper, then
Shipper transfers it to the bank. The bank sends it to the bank on the receiving side,
then it is further forwarded to the consignee and the receiving Freight Forwarder,
finally reaching the port and customs for cargo release procedures [12]. Except for
using Surrendered B/L and Seaway Bill, all other types of B/L require the original
to be presented to the carrier for cargo release, thus delayed B/L arrival leads to
delayed cargo release. If you want to receive the goods early, you will need the
intervention of parties such as banks to issue a letter of guarantee for receipt of
goods.

Secondly, due to the multiple transportation and handling stages, the B/L is
susceptible to risks of loss, theft, or tampering. The process of reissuing or
authenticating the B/L is time-consuming and costly. Specifically, the time to report
B/L loss and issue a new B/L can extend for several weeks. This may result in cargo
being stuck at the port, potentially leading to damage. Port storage costs,
compensation for delays or damages, could cost millions of dollars. In addition, the
loss of the original bill of lading will lead to difficulties for the parties involved in
receiving goods, making payments and resolving arising disputes.

Thirdly, the cost of printing and shipping bills of lading is expensive, costly,
and causes environmental pollution. Depending on the delivery distance, the
issuance and delivery costs range from $200 to $450 for a bill of lading [12].

Blockchain technology can solve this problem and help digitize ocean bills of
lading become more popular and more accessible. According to World Bank
statistics, in 2016, the number of containers transported in the world reached 750
million units and the average growth rate was 50 million containers per year. Thus,
new blockchain technology, if applied successfully, will help the world save
hundreds of billions of dollars every year.

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The implementation of the electronic bill of lading (e-B/L) offers substantial
benefits to the maritime transport industry. Firstly, it ensures high security. Utilizing
blockchain technology, the e-B/L is created through the carrier's electronic
signature, and will create a private key for the shipper when receiving goods for
transportation [11]. The shipper will retain this private key to make decisions
regarding the cargo during transit, including endorsing the bill for a third party by
transferring this private key. The third party can further endorse the bill, and this
process continues until the cargo is delivered to the final recipient who presents this
private key. An important security feature that makes it possible is that after each
transfer, each existing private key is invalidated and replaced with a new key for
the recipient of the transfer. E-B/L data will be saved in multiple copies on multiple
computers, interconnected to form a Peer-to-Peer sharing network [13]. Thus, to
attack the system and alter information, hackers must attack multiple computers in
many different places, which is not easily achievable, thereby enhancing the overall
security of the system. Additionally, data is encrypted and only authorized users can
decrypt it.

Another advantage is the cost and time efficiency of delivery. For e-B/L, the
delivery cost is nearly zero, and the delivery time is almost instantaneous, similar to
sending an email. Furthermore, e-B/L is rarely lost or edited. At the same time, it
helps reduce the amount of paper used, reduce personnel and minimize errors [12].

Furthermore, e-B/Ls bring transparency in storage and management. Each

company or organization participating in the system can store data independently,
regardless of any specific organization, providing them with peace of mind knowing
that their critical data is not solely managed by any particular entity [12]. The
system's operation is transparent and verifiable. Moreover, utilizing blockchain
technology for e-B/Ls facilitates easy verification and searching. Information on the
blockchain is stored permanently and cannot be modified.

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Figure 2. Benefits of applying blockchain to marine bills of lading

Due to the significant and visible benefits of applying blockchain technology

to bills of lading, a number of large companies in the world have begun
experimenting and have achieved promising results. Pacific International Lines
(PIL), a Singapore-based company owning 150 containers of various types and
employing 18,000 staff globally, has developed and piloted electronic bills of lading
using blockchain technology. The company conducted a trial for a shipment
comprising 3,000 crates of oranges (approximately 108,000 oranges) from China,
imported into Singapore through the importing company Hupco [14]. This trial
yielded quite favorable results. Specifically, administrative procedures and
processing time for the entire B/L process reduced from 7 days to just 1 second.
Hupco, the importing company, benefited from being able to get goods faster than
usual. This is very important for perishable products that need quick delivery time.
Furthermore, all procedural documents can be tracked in real-time, ensuring they
are kept safely without modification, helping to reduce the risk of fraud by up to
40%. The results of this experiment serve as a significant milestone, validating the
effectiveness of this application in real-world conditions.

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Governments of countries are also beginning to embrace the new blockchain
technology and recognize its effectiveness, with programs aimed at promoting and
supporting companies in adopting the technology. In January 2018, a memorandum
of understanding was signed by the Maritime and Port Authority of Singapore
(MPA), the Singapore Shipping Association (SSA), and Singapore Customs,
collaborating to facilitate the development of electronic bills of lading applications,
especially utilizing blockchain technology [15].

On the legal side, the United Nations Commission on International Trade Law
(UNCITRAL) has published a model law applicable to the transfer of ownership
rights of electronic documents, such as the transfer of electronic bills of lading.
Some countries have started to formalize these laws. For example, in the United
States, the laws of the State of New York have recognized electronic commercial
contracts and transactions, including electronic bills of lading and other digitized
documents stipulated in the Uniform Commercial Code (UCC). In countries where
legislation for technology applications is slower to be enacted, companies often
form partnerships and enter into contractual arrangements accepting the transfer of
ownership rights of documents, electronic contracts, including electronic bills of
lading, among members and organizations [16].

However, electronic bills of lading in general, or bills of lading using

blockchain technology in particular, cannot be effectively implemented without
strong legal support. In terms of international law, international conventions on bills
of lading such as the Hague Rules 1924, Hague-Visby Rules 1968 do not have
provisions for electronic Bills of Lading [13]. When regulations regarding e-B/Ls
have not been enacted, the legal status of e-B/Ls will not be recognized, and the
legal relationships arising from the use of e-B/Ls will not be regulated, resulting in a
lack of uniformity in operational procedures, especially the assurance of rights and
responsibilities of the parties in disputes. The lack of a legal framework governing
e-B/Ls also makes it difficult to ensure that banks will participate in financing
transactions using e-B/Ls, because banks are always careful when checking the
legality. of transactions and carry out transactions in absolute compliance with the
law and carry out transactions with absolute legal compliance. Until the law
governing e-B/L is enacted, legal conditions will still be the biggest barrier that

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makes international trade participants hesitate in choosing e-B/L. Large delivery
companies, such as FedEx, are urging governments to expedite research and enact
appropriate laws for the application of blockchain technology in logistics and
transportation [17].

III. INTERNET OF THINGS (IoT)

1. Definition

Internet of Things (IoT) refers to the network of interconnected devices,

sensors, and objects that collect and exchange data over the internet without
requiring human intervention. These devices can range from everyday objects such
as household appliances, wearable devices, and industrial machinery to vehicles,
smart home devices, and infrastructure components.

IoT enables these devices to communicate with each other, gather and analyze
data, and perform automated tasks to improve efficiency, productivity, and
convenience in various domains such as healthcare, transportation, agriculture,
manufacturing, and more.

IoT technology typically involves sensors or actuators embedded in physical

objects, which collect data about their environment or perform actions based on
instructions received from a central system or other connected devices. This data is
then transmitted over the internet to cloud-based platforms or local networks, where
it can be processed, analyzed, and used to make informed decisions or trigger
specific actions.

2. Application of IoT in Multimodal Transport

2.1. Tracking and Monitoring

The use of IoT technology in tracking and monitoring systems for multimodal
transportation has revolutionized the way efficiency and safety are managed in the
industry. IoT technologies can be deployed to monitor and adjust climate conditions
for temperature-sensitive goods during production, transportation, and storage. For
example, Maersk is responsible for transporting 27% of the world's refrigerated
container volume. According to them, about 350 million tons of food must be
thrown away each year due to lack of storage and delays in the transportation

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process. Currently, approximately 94% of Maersk's 380,000 reefer containers are
supported by Maersk's Remote Container Management (RCM) technology.
Maersk's Remote Container Management (RCM) is a system that allows customers
to remotely monitor the location and conditions (such as temperature and humidity)
of reefer containers in real time [18]. Conditions can be adjusted remotely if
specific thresholds are exceeded, thereby reducing the amount of difficult-to-store
goods damaged during transport as well as the time spent inspecting containers
upon arrival.

Remote monitoring and control of product temperature during transportation is

also important for other industries such as pharmaceuticals. According to
Carogsense, about 25% of vaccines lose quality upon arrival due to improper
shipping conditions, and IQVIA Institute found that the biopharmaceutical industry
loses about $35 billion each year due to thermal errors. degree in transportation
[18]. In fact, this number is even higher amid the outbreak and COVID-19 vaccines
being rolled out worldwide. By integrating IoT devices into vehicles and
infrastructure, real-time data collection and analysis have become possible,
providing valuable insights that can be used to optimize routes, schedules, and
maintenance processes.

2.2. Managing Asset

The use of Internet of Things (IoT) technology allows companies to manage

assets effectively, enables transportation companies to streamline operations, reduce
costs, and maximize resources. By incorporating IoT devices into vehicles,
containers, and infrastructure, real-time tracking and monitoring of assets have
become possible. This real-time data allows companies to improve asset utilization,
reduce operational costs, and enhance security measures.

The United Kingdom's Associated British Ports (ABP) and British

Telecommunications (BT) Association are currently trialing new-generation sensor
and IoT technology at Ipswich Port, UK. They have installed IoT devices on cranes
and transport equipment to analyze a range of data (such as completion time,
distance traveled, route taken, unloaded cargo weight) allowing the port
management department to monitor the progress of the entire operational process

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from ship to shore in real-time and improve the flow of cargo from dock to yard and
through customs, especially during severe port congestion and peak seasons [18].

Another example of using IoT in managing assets is the DHL company. This
company uses sensors to monitor whether a container truck or ship is being operated
[19]. They then transmit the data to the optimal analysis unit. This technology
allows DHL to control goods, avoid theft, and optimize transportation.

These devices also monitor periods of port inactivity, underutilized operations,

and maintenance needs, thereby helping the port reduce costs and even greenhouse
gas emissions. The capabilities brought about by this technology can also minimize
human error and enhance safety at ports.

2.3. Automating

Automation of processes using IoT technology enhances operational

efficiency by reducing human errors and saving labor costs, leading to smoother and
more reliable transportation services. By automating various processes such as
routing, scheduling, and maintenance, transportation companies can optimize their
operations and improve overall performance. The integration of IoT devices further
enhances these benefits by providing real-time monitoring and data analytics
capabilities. These devices enable transportation operators to make informed
decisions quickly, respond to changing conditions, and ensure the safety of
passengers and cargo.

In the realm of warehousing, IoT technologies can be employed in Automated

Guided Vehicles (AGVs) to calculate the shortest routes between storage racks and
replenish stock without human supervision, warehouse management, and order
fulfillment. For instance, Cainiao, Alibaba's logistics unit, utilizes nearly 700 IoT-
enabled AGVs for receiving and delivering goods inside warehouses. These AGVs
can autonomously recharge their batteries and are expected to significantly reduce
the distance traveled by staff during the day, thereby increasing labor efficiency by
30% [18].

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2.4. Predicting and Operational Efficiency

The use of Internet of Things (IoT) in predicting transportation patterns has

revolutionized the way we analyze and optimize routes, leading to reduced
congestion and improved overall transportation efficiency. By collecting data from
various sources such as sensors, cameras, and GPS devices, IoT enables us to
understand traffic flow, congestion points, and commuter behavior. With the ability
to access up-to-date information on traffic conditions, weather patterns, and road
closures, stakeholders can make informed decisions promptly, leading to smoother
operations and better service delivery. Moreover, by leveraging algorithms and data
analysis, transportation networks can be optimized to minimize travel time, reduce
fuel consumption, and enhance overall system performance.

"UPS leverages vast amounts of data from its Global Smart Logistics Network
to provide unprecedented services to our customers," said Juan Perez, UPS Chief
Technology and Information Officer. "By expanding the use of Google Cloud, UPS
can achieve higher levels of predictive data analysis, improve customer experience,
and create operational efficiencies while reducing our carbon emissions." [20]
UPS's Harmonized Enterprise Analytics Tool (HEAT) is an in-house developed
Intelligent Business Platform, utilizing advanced predictive analytics. This tool
utilizes over 1 billion data points to provide the most accurate forecasts and the
ability to monitor and control how packages move through UPS's network. This
granular data direction is highly valuable to UPS, especially during the peak holiday
season when package volume increases by up to 60%, or during the COVID-19
pandemic when UPS distributed over 1 billion vaccine doses with 99.9%
effectiveness and provided shipment tracking information for vaccines to any
location within UPS's global network within 10 feet of the vaccine package.
Moreover, UPS has leveraged Google Cloud's expertise in data analytics allowing
UPS to optimize delivery routes and reduce fuel consumption.

2.5. Sustainable Development

IoT enabled multimodal transport solutions contribute to sustainability efforts

by minimizing the environmental footprint of transportation activities. By
optimizing routes, reducing idle times, and improving fuel efficiency through real-

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time monitoring and analysis, IoT technologies help reduce greenhouse gas
emissions and air pollution associated with transportation. Furthermore, the use of
alternative fuels, electric vehicles, and eco-friendly transportation modes, facilitated
by IoT-driven logistics and fleet management systems, further mitigates
environmental impact and promotes sustainable transportation practices.

According to Danfoss, IoT solutions have helped food retailers save

approximately $37 million by reducing food waste (for example, by monitoring
temperature) and cutting 2 million tons of CO2 emissions over the past five years
[18]. Furthermore, IoT solutions can be utilized in transportation to shorten delivery
routes, resulting in reduced fuel consumption, while predictive maintenance enabled
by IoT technology applications can prolong the lifespan of critical equipment,
thereby aiding in waste reduction.

The application of IoT technologies has proven to be a game-changer,

enabling real-time data collection, analysis, and decision-making. By harnessing the
power of interconnected devices and intelligent systems, transportation providers
can now anticipate and respond to changing conditions, ultimately improving the
overall user experience. This integration of IoT in the transport sector not only
improves visibility and transparency but also contributes to cost savings and
increased customer satisfaction. In the future, the continued integration of IoT in
multimodal transportation systems promises a future of innovation, growth, and
sustainability, where transportation networks are seamlessly integrated, adaptable,
and resilient, meeting the evolving needs of both individuals and communities.

However, the implementation of IoT in multimodal transportation also comes

with challenges and limitations. Some of these challenges include data privacy
concerns, interoperability issues between different IoT devices and systems, as well
as the high initial investment required for IoT infrastructure. Moreover, promoting
the application of IoT technology in multimodal transport can cause job
displacement, which negatively impacts the economy and society. Therefore,
companies must carefully consider these challenges and work towards finding
solutions to fully harness the potential benefits of IoT in multimodal transportation.

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IV. SOLUTIONS TO PROMOTE TECHNOLOGY DEVELOPMENT FOR
MULTIMODAL TRANSPORT

Multimodal transport is a form of domestic and international transportation of

goods using many different means and transport infrastructure in the process of
moving from the point of origin to the destination. This aims to deliver and receive
goods by road, rail, waterway, and air to optimize the transportation process.
Multimodal transport is a key player in the field of modern logistics. It includes
services of supply, packaging, loading and unloading, warehousing, management,
simplification of customs clearance, documentation, consignment, and direct
shipping. This is a way to meet the requirements in the new context and create
efficiency and competition in the marketplace

The rapid advancement of technology has sparked a revolution across various

industries, and the transportation sector stands as a prime example. Multimodal
transportation, characterized by the seamless movement of goods through diverse
modes of transport, has emerged as a pivotal solution to the challenges of
efficiency, sustainability, and safety in modern logistics. However, to fully exploit
the potential of multimodal transportation, prioritizing technological innovation is
imperative. Promoting the development of multimodal transportation technology is
crucial for enhancing the efficiency, safety, and sustainability of multimodal
transportation systems. To achieve this goal, several important solutions can be
implemented.

1. Boosting Investment in Research and Development (R&D)

Boosting Investment in Research and Development (R&D) is a necessary step.

Sizeable investment in R&D serves as the bedrock for nurturing technological
innovation. Governments can lead the charge by allocating funds towards research
initiatives focusing on emerging technologies like artificial intelligence, big data
analytics, and blockchain. Creating an environment conducive to innovation
through tax incentives, streamlined regulations, and fostering public-private
partnerships can further catalyze R&D efforts and attract private-sector investment.

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2. Creating a Favorable Environment for Innovation

Creating a favorable environment for innovation is essential. Governments and

regulatory bodies need to establish an innovation ecosystem in the multi-modal
transportation sector. This includes introducing policies that incentivize and support
technology start-ups and building linkages between the government, businesses, and
research communities to foster a dynamic and innovative environment.

3. Establishing a Strict Legal Framework

A comprehensive legal framework is essential to ensure the safe, secure, and

efficient operation of multimodal transportation systems. Governments must enact
regulations and standards that keep pace with technological advancements while
prioritizing safety and security. This entails developing clear guidelines for
operating novel transportation modes such as autonomous vehicles and drones,
while addressing data privacy and cybersecurity concerns.

4. Promoting Awareness and Skill Development

Fostering awareness and understanding of the benefits of technological

innovation among stakeholders is pivotal for successful adoption. Educational
initiatives, workshops, and seminars can disseminate information and share best
practices regarding technology integration in transportation. Moreover, investing in
training programs to upskill the workforce and equip them with requisite technical
expertise is essential to bridge the skills gap and ensure a seamless transition to new
technologies.

5. International Cooperation

International cooperation plays a significant role in promoting technology

development in the multi-modal transportation sector. Facilitating international
collaboration can expedite knowledge sharing, foster cross-border innovation, and
accelerate the development of cutting-edge technologies. This can be achieved
through active participation in international conferences, forging partnerships with
foreign research institutions and companies, and engaging in collaborative research
endeavors. Leveraging global expertise and resources enables nations to collectively
address challenges and unlock the full potential of multimodal transportation.

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By implementing these solutions, governments can establish an enabling
environment conducive to technological innovation in the multimodal transportation
sector. This paves the way for a more efficient, sustainable, and safe transportation
system that aligns with the evolving needs of the global economy and society.

V. CONCLUSIONS

In conclusion, technological innovation serves as the driving force behind the

advancement of multimodal transportation. The convergence of Blockchain and IoT
holds immense promise for revolutionizing multimodal transport operations,
offering a wide array of benefits ranging from enhanced efficiency and cost savings
to improved risk management and compliance. By leveraging the synergies between
these two transformative technologies, stakeholders in the logistics industry can
unlock new opportunities for innovation and optimization across the entire supply
chain ecosystem.

Through strategic investment in R&D, the establishment of a strict legal

framework, the promotion of awareness and skill development, and the
encouragement of international collaboration, we can harness the transformative
potential of technology and shape a future characterized by efficient, sustainable,
and safe transportation for all.

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