Emerging tech trends continue transforming and shaping the global economy and international trade. The transformation lies in the technology’s ability to foster security, transparency, and inclusivity while importing and exporting to various destinations.
Artificial Intelligence, Machine Learning, blockchain technology and digital trading platforms are some of the leading tech trends in international trade. These technologies have redefined traditional import procedures with automation and optimisation.
Importers, IORs, custom brokers, and consignees can seamlessly navigate the customs clearance procedures and track the movement of goods from source to destination.
Additionally, importers of records can utilise route optimisation and ensure the security of goods in transit through IoT-enabled goods monitoring. In a nutshell, technology is revolutionising international trade and helping IORs offer efficient, secure and transparent services.
This article discusses the power of the Fourth Industrial Revolution, including IOR trends and innovation. You will learn how IORs can utilise technology for regulation compliance, customs documentation and logistics management, and the future of IORs.
Let’s keep the ball rolling!
Recent IOR trends and innovations in international trade
Technology has unleashed invaluable innovation to propel international trade and alleviate its intricacies.
Here are the top technology trends making headlines in global importation.
1. The use of AI and Machine learning for supply chain optimisation
Ensuring compliance with local and international customs regulations has never been easy. The procedures can be daunting for importers, from obtaining licenses for restricted goods to ensuring quality and security standards are met.
However, AI and machine learning have unravelled various ways to navigate the procedures.
Let’s explore the various ways AI and ML are helping in the cross-border trade:
Automated HS code assignment
Over 200 countries utilise the Harmonised System (HS) code classification to identify goods for customs duties and tariffs evaluation. However, HS codes have been reported to present numerous errors, including human errors for users who are not trained. Besides, HS codes do not offer sufficient data to perform economic analysis accurately.
Innovators have found ways in which AI can help alleviate the complexities of HS code classification, offering more accurate data. For instance, a 2023 study reveals that Large Language Models (LLM) such as GPT 3.5 can automatically identify products with 60%-90% accuracy levels.
Intelligent customs document processing
Using Natural Language Processing (NLP) and Advanced Optical Character Recognition (OCR), AI systems can automatically verify complex trade documents.
The automation reduces the risk of fraud and errors, ensuring compliance with regulations and accelerating the customs clearance process. Also, automation offers efficient customs clearance, helping importers of record save on time and cost of importation.
Predictive risk assessment
International trade entails various risks, including counterfeiting, fraud, and illicit activities. For instance, an importer can classify goods as sample products instead of products for sale, aiming to evade customs duties.
Customs officials can use machine learning algorithms to sift through declaration data and identify potentially fraudulent importers. This is possible with the help of tools such as Tableau and Microsoft Power BI. By identifying and mitigating possible risks, importers of record can avoid unnecessary costs such as penalties from illicit trade.
Optimising trade shipping routes
Optimisation models can determine the safest, shortest, and cost-efficient route by analysing data from sources such as weather, traffic or GPS.
For instance, AI can predict a chosen route will be storm-dominated at the time of a planned shipment, risking loss, damage or delayed delivery. Hence, it helps reroute the shipment to a safer route. With route optimisation, importers of record can ensure that imported goods reach the destination country safely and conveniently.
Manage truck traffic and vessels at ports
AI and Machine learning are already helping alleviate the issues of slowdowns and lockouts in busy ports.
For instance, the Port of Long Beach in Los Angeles utilizes a cloud-based solution (Port Optimizer) to track the health and vitality of the port. The solution also provides a 6-month projection of future cargo volume based on the port’s vast data.
Eliminating congestion at the port helps importers of record offer the best customer experience with timely deliveries.
2. Blockchain-based solutions in trade financing (distributed ledger)
Blockchain technology is a shared database that facilitates transactions, recording and tracking assets in a business network. It allows select participants to securely collect, integrate, and share transactional data from varied sources.
One of the top priorities when importing goods is to eliminate unnecessary costs such as hidden costs, overcharging, and undercharging.
Here are the various ways blockchain technology is helping to ensure transparency and cut costs throughout the importation supply chain:
Secure and transparent ledger
Blockchain can store any data, including invoices, certificates, contracts, or ownership records. Since the data is centrally stored, it is accessible to all the participants of an import transaction, fostering transparency.
Blockchain encrypts and links each transaction to the previous, forming an immutable chain of blocks of transactions. Hence, parties can trace each transaction and verify the information, eliminating discrepancies and hidden costs.
Simplifying payment mechanisms (cross-border payments)
A study by Tripple-A reveals that cryptocurrency adoption is rising at 4.2% year-over-year, with over 420 million crypto users worldwide as of 2023. More banks and companies are expected to adopt it, as the cryptocurrency market is projected to record a 56.4% CAGR between 2019 and 2025.
Besides, companies that accepted crypto payments recorded a 327% ROI and a 40% increase in new customers. Hence, blockchain simplifies payment mechanisms as crypto investors can securely settle import transactions without registering multiple bank accounts.
In a nutshell, blockchain technology offers the following benefits in an import transaction:
- Provides a single source of truth for all parties involved
- Improves data integrity as the transactional records are tamperproof
- Provides faster transaction processing, improving customer experience
- Reduces losses and lowers the cost of doing business
- Ensures customers realise optimum return on investment.
3. Digital platforms for trading services
The rise of digital platforms has led businesses to tap into new markets and reach a broader audience. Businesses and consumers are globally connected and it is easier to find service providers now than ever.
Importers can survey potential markets online and identify potential import destinations. They can also vet service providers such as importers of records based on customer reviews, testimonials, and information on blog articles and websites. Even the importers of record can connect with potential customers via social media platforms or newsletter emails and contact forms on websites such as Blackthorne’s.
The integration of technologies such as AI, machine learning, and virtual reality is fueling the growth of digital platforms. As such, the digital platforms market size is projected to grow at an 11.9% CAGR between 2023 and 2030. As digital platforms gain prominence, more importation opportunities unravel, encouraging international trade.
4. Internet of Things (IoT) for shipment tracking
IoT incorporates embedded systems like communication hardware, sensors, and processors into web-enabled smart devices. The devices can then collect data from their environments, process it and share meaningful outcomes.
The technology helps provide real-time data on the condition of goods, security and location during transportation. For instance, sensors can detect tilting, vibration, shock, or temperature, helping prevent damage and ensuring the integrity of goods.
5. Robotics and Autonomous vehicles
An autonomous vehicle can sense its environment and operate without human intervention. Autonomous mobile manipulation has proven to be the safest and most efficient solution in material handling in warehouses.
Mobile robots are significant in optimizing logistics management as it helps automate the movement of heavy, repetitive or dangerous materials at the warehouse.
Furthermore, some products such as cars or parts of a plane require special handling which can go on for days or a week when unloading. That’s not the case with robotics as they can do the work accurately and within the shortest time possible.
Benefits of technology trends to importers of record (IORs)
The technological revolution in international trade offers millions of opportunities for importers of record.
Here are the top five benefits of technology trends in international trade:
- Improved supply chain visibility: With centralised trade management systems, IORs can manage risks and ensure the security of goods from source to destination.
- Reduced administrative tasks: AI and machine learning automation such as intelligent documentation saves time, reduces errors, and ensures faster delivery.
- Enhanced traceability and compliance: Technologies like the blockchain can provide an audit trail of transactions, enhancing transparency. Also, automation of tasks such as HS code assignment ensures accurate identification and compliance with regulations.
- Saving on time and cost: From eliminating costs with predictive risk management to cutting labour costs with autonomous mobile robots, IORs can help customers drive up to 200% ROI.
- Improved customer experience: Customers are satisfied when a shipment moves from source to destination country in the shortest time possible, with minimal expenses and optimal return on investment and technology is helping IORs achieve that.
The Future of IOR
The future of importer of record is promising.
Considering the rate at which technological trends are gaining prominence, importing and exporting services are becoming more accessible and cost-efficient. This is because of the benefits discussed in this article, based on technological trends.
However, it would be more costly for every individual to acquire all the tools to help in automation, compliance, tracing and transacting efficiently. Instead, importers would reap the most benefits when working with companies with these tools.
Established importers of record, such as Blackthorne, leverage the technological trends to provide world-class global transportation services.
Besides, they can sync customs, logistics, and transaction data to offer a heavenly importation experience for their customers. Hence, importers can tap into the power of technological trends, cutting costs and optimizing ROI for business continuity.
That said, if you want to ship your goods internationally, you can email us at sales@blackthorneit.com, or call our team directly today!
Alternatively, you can explore our IOR services and let us know if you found your desired solution. We are always happy to help.
