7 Perspectives on the Impacts of Digitalisation in Shipping
Andre Simha
Global Container Shipping | Digital Shipping | Smart Containers - Chief Digital and Innovation Officer
Digital transformation affects everyone in shipping — but how??
Over the last year and a half, I've conducted MSC Digital Talks, a series of conversations with key leaders and experts in shipping to find out.
Shippers, freight forwarders, ports, governing bodies, tech providers — what does digital transformation look like for each of them? Are there common themes? More importantly, what can we learn from each other?
The results of the talks were revealing.?
How do major ports from Asia, Europe and North America view data sharing? How can IoT bring new levels of visibility into shipping? What should we expect from AI? Most importantly, what major themes affect every stakeholder?
In this piece, I attempt to summarise the major take-aways from the talks. I would also encourage you to watch the series to get a more in-depth view from each perspective.
Thank you to those who generously gave their time and insights for our MSC Digital Talks.
Philippe Lestrade (Managing Director of MSC France), Jan Hoffmann (Head of Trade Logistics in UNCTAD), Gene Seroka (Executive Director of the Port of Los Angeles), Ghim Siew Ho (Head Group Strategy and Cargo Solution of PSA International), Iwan van der Wolf (CEO of Portbase), Christian Xu (Group Pricing Center Director of De Well) and Raphaelle Hemmerlin (Head of Tech & Innovation at Sucafina, coffee trader).
Standards are the foundation for systems’ interoperability
“Digitalisation can learn from containerisation. The container was invented by the private sector, but it only became the ‘humble hero’ thanks to public global standards.” — Jan Hoffman, UNCTAD
The ongoing digital transformation of shipping is exciting, even more so when we look toward the future. Connected ecosystems, seamless real-time data sharing, blockchain platforms and emerging technologies will enable smarter, faster operations and better decisions.
But as Phillipe Lestrade of MSC France says “we need standards to be able to improve systems’ interoperability, [...] to bring a better digital experience by speaking the same language.”
Just as the standardisation of the shipping container revolutionised global trade, or how Bluetooth transformed connectivity in consumer electronics, standardisation of data in shipping lays the foundation for everything else. It makes sharing data easier, faster and more accurate.
Through industry collaboration initiatives like DCSA, global trade organisations like ICC, CEFACT, WTO and WCO (to name just a few), we can join forces and further promote standards that allow for more seamless data sharing.?
Collaboration, data sharing and integration
“Supply chain involves so many players. If we want to deliver the desired outcome it would have to involve everyone in the supply chain." - Ho Ghim Siew, Head Group Strategy and Cargo Solution of PSA International
If standards are the foundation for data-sharing, how we make data intelligible and actionable is key.?
As we collect more and more data, the true value of the data depends on how we share and integrate it. As Raphaelle Hemmerlin of major coffee trader Sucafina, a frequent user of MSC smart containers, put it: “We need to be smart about smart data.”
Port call optimisation demonstrates how real-time data sharing from ports can optimise vessel predictability, visibility and sustainability. Smart container data can give customers better visibility, security and peace of mind. Shipment data can create more seamless and reliable experiences for freight forwarders and their customers.
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It’s the sharing and integration of data that unlocks the real value. Shared data becomes a shared asset. ?
“We want to enable the ecosystems themselves to do more with data and create new products,” says Iwan van der Wolf, CEO of Portbase. Likewise, Gene Seroka, Director of the Port of Los Angeles, sees this trend continuing when he says that “the conversation is more frequent than it’s ever been, about how port information sharing systems can benefit the supply chain and all of our partners.”
Innovation & the future
“We need to open our arms to give a hug to the data. Welcome the data. This is the future.”? – Christian Xu, Group Pricing Center Director of freight forwarder De Well.
When people think of innovation, they typically imagine big, world-changing disruptions. But innovation isn’t always something completely new and never seen before. It can also be doing existing things in a new way.?
For Portbase, it meant incremental innovation, digitising existing processes before optimising.
For PSA International, it involves new perspectives, bringing people in from outside the industry to become innovation catalysts who can bypass legacy beliefs and promote change. ?
And although digital adoption is not yet widespread, Christian Xu is already looking towards AI to get more from their data.
“We need these tools to help us further analyse our data. The final step will be how data can tell you the future. Not only predict the cargo arrival, but to predict the last mile, or predict how your ecommerce platform sells.”
Innovation wears many hats, but however it is applied, it is what keeps us moving forward.
Conclusion
It’s hard to capture all of the fantastic insights from the Digital Talks, and this is just a summary. I encourage you to watch the whole series for more insights about cyber security, learnings from the pandemic, and how e-documentation can make global trade frictionless.
You can also watch the Digital Talks summary video here .
Once more, I’d like to thank everyone who contributed to these talks. They showed me how much alignment there is across the industry.?
Standards, interoperability, data sharing, integration and innovation are being embraced across the board. Of course, everyone has their own unique challenges, but at a macro level it looks like we’re on the right track.
Naturally, I’m curious to get your input (and who should I have conversations with in 2024?)!?
Are these themes the same as what you’re experiencing? What else would you add to the list??
Let me know in the comments below.
Sales consultant forwarding and shipping .
11 个月Thank you Andre for sharing with us !
In Togetherness, We Thrive. Wallem Group Business Development and Marketing Director / Gallup-Certified Strengths Coach.
11 个月Thanks for sharing! The outcome new business model is the “glue” to make digitalisation stick in new maritime industry. This requires willingness to collaborate in value creation. Willingness for new ways of business. Happy 2024!
Digitalization and automation of processes are increasing competitiveness and operational efficiency, as well as aiding in the industry's decarbonization efforts. Furthermore, digital technologies are enabling cost savings and driving innovation in the shipping industry, with a focus on reducing operational expenses!
Global TradeTech & Logistics Leader | Engineering & Supply Chain & Dangerous Goods Expert | Driving Innovation & Sustainability | International Sales & Procurement | Leadership and Consultant
11 个月Dear Andre, I personally acknowledge and underline 100 percent of what is already written in the "MSC digital talks" document.? However, innovation is stifled at its core if we put a price tag behind every single milestone and believe that we can compensate for this in the short term with more turnover/cash flow. It is the accumulation of milestones achieved that will ultimately lead us to success. Ultimately, the will to share data and not fall into the narrative of "locking up data like gold" will play a central role.? This is not a sprint, it is a marathon. Best regards, Roger