Lessons from the TPM Tech Jam

Can technology solve real world problems BCOs face every day? That’s the question we set out to answer during the 1st Innovation Jam at TPM last month in Long Beach, ably moderated by Brian Laung Aoaeh of Particle Ventures. The technology discussion has to a large degree been hijacked by irrelevant subjects: What’s the latest startup? How much money did so and so raise? What’s its valuation? The answer to those questions, really, is who cares? The only truly relevant subject in a technology discussion is what problems can it actually solve, and can it solve them economically? A BCO can achieve 100%, minute-by- minute visibility of its cargo, but at what cost and what value can be created out of that information? The answers aren’t so clear.

In the 1st TPM Innovation Jam, where we heard from eight tech providers each proposing to solve a different problem, we learned a number of things: That there are existing, real and actionable solutions to many major BCO pain points. They're in various stages of acceptance and impact. The lack of cargo visibility in ocean containers — a major source of the BCO pain points addressed in the Jam — clearly won’t be solved overnight (although it’s gaining much more rapid adoption in trucking). The development of solutions is coming from a range of providers, ranging from those with significant backgrounds in shipping to those who some might consider fly-by-night technologist startups. Many of those involved in developing technology able to solve BCO problems are well-known to the industry, while others have little to no name recognition but still deserve watching.

When all the presentations had been made and attendees’ votes on the most convincing solution to a pain point was tallied, the winner was Gordon Downes, founder and CEO of NYSHEX, the container slot exchange that virtually eliminates the risk of cargo not being loaded on the intended sailing (as well as the carrier’s risk of not receiving cargo against a confirmed booking). That, according to the audience, convincingly solved this BCO point point: “Even though we have a service contract, our cargo is still subject to rolling.” Especially in tight markets, which are not easily foreseen, buying slots on the NYSHEX exchange allows the shipper to lock in a rate and guarantees the container gets loaded.

Our quest for real solutions to serious BCO pain points will not slow down. The industry will only evolve when problems get solved and those solutions see widespread adaption. Could blockchain play a role? The number of blockchain ventures announced just since the beginning of the year suggest that some viable potential solutions are being proposed to the market. Going forward into the fall lineup of JOC events — at Container Trade Europe in Hamburg on Sept. 18-20, TPM Asia in Shenzhen on Oct. 9-11 and the Inland Distribution Conference in Chicago on Oct. 22-24, we will iterate off the approach of the TPM Jam, introducing some variations on the approach initiated at TPM, but keeping the focus squarely on how technology can solve shipper/BCO pain points. We look look forward to continuing the dialogue!

Photo caption: At the 2018 TPM Tech Jam on March 6, left to right: Gordon Downes of NYSHEX, Sumitha Sampath of Xvela, Karim Jumma of Inttra and Vladimir Pshonyak of PierTrucker.com.