Securitizing Transportation Capacity Units for Secondary Markets
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Solution Overview
Problem
Current transportation and freight management systems lack transferability of underlying tickets or freight units, are opaque, and lack force majeure remedies, leading to inefficiencies and monopolistic practices, preventing fair and transparent pricing in geolocation-based markets.
Innovation Solution
A system integrating navigation geolocation with exchange-based technology to enable data transformations and securitization of transportation and freight units, allowing them to be traded as commodities on secondary markets, using virtual hubs and secure login methods, and incorporating force majeure clauses.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If transportation and freight management systems use traditional non-transferable ticket structures, then system simplicity is maintained, but market flexibility and transferability are lost
Solution Approach 1:
The patent segments transportation capacity into discrete, transferable units (transportation units) that can be independently traded. Each unit represents a specific capacity allocation (e.g., a seat on a flight, a parking space) that can be transferred between parties through secondary markets, transforming traditionally non-transferable tickets into tradable commodities while maintaining clear ownership boundaries
Solution Approach 2:
The patent creates a universal platform that handles multiple types of transportation units (flights, trains, buses, parking, freight) through a common securitization framework. The same legal and technical structure is applied across different transportation modes, enabling flexible trading while using a standardized system that reduces overall complexity through reuse of contracts and protocols
2Loss of information
If transportation markets operate as opaque dark markets, then transaction privacy is maintained, but pricing transparency and fairness are reduced
Solution Approach 1:
The patent implements public pricing displays that show real-time pricing information for transportation units in secondary markets. This feedback mechanism allows consumers to see what others are paying for the same capacity, creating market transparency that prevents monopolistic pricing while still allowing private negotiation of individual transactions. The system publishes aggregated pricing data without exposing sensitive personal information
Solution Approach 2:
The patent creates an equipotential pricing environment where all consumers have access to the same pricing information and trading opportunities for transportation units. By making pricing data publicly available across the platform, the system eliminates information asymmetry between buyers and sellers, ensuring fair competition and preventing discriminatory pricing practices while maintaining transaction privacy through standardized public displays
3Reliability
If transportation capacity units lack force majeure clauses, then contract simplicity is maintained, but reliability and remedy mechanisms are insufficient
Solution Approach 1:
The patent incorporates force majeure clauses and automated remedy mechanisms into the standardized legal contracts that govern transportation unit trading. These provisions are built into the contract structure beforehand, automatically triggering appropriate remedies (such as termination payments or capacity reassignment) when force majeure events occur. This preliminary structuring ensures reliability without requiring complex ad-hoc negotiations during crises
Solution Approach 2:
The patent implements automated systems that monitor force majeure events and automatically execute remedy provisions in the contracts. When a force majeure event is detected, the system automatically calculates and processes termination payments or reassigns capacity according to pre-defined formulas, eliminating the need for manual intervention or complex legal proceedings. This self-service approach maintains reliability while keeping contract administration simple
Data Source
AI summary
Implementations of a computer implemented method and system to transform geolocation exchange unit specifications and transportation and freight and parking and tolling and curb management and transportation management association unit securities or derivative unit securities or unitization structure capacity units with two waypoints or a destination waypoint or a series sequence of waypoints into multi-modal objects which are tradable as commodities such as wheat, oil, corn, stocks, foreign exchange, fixed income or other forward or securitized markets and broadcast those unitized prices, indices and associated news over a plurality of electronic devices. The present disclosed invention relates to combining the concepts of objected oriented programming and navigation systems and social networking, price-time priorities queues, replacement costs, termination valuations, financial markets, commodity structuring transformation or unitization structures as a fungible asset classes or tradable markets.