SHIPPING 2030: How the Wave of Innovation is Reshaping the Maritime World

Riding the digital wave

It is well known that the maritime industry, despite transporting up to 90 percent of the world's trade in today’s modern economy, has always been considered relatively cautious to adopt new technologies. In fact, whenever we think about the shipping world, we imagine a powerful and efficient machine yet quite resistant to change, still characterized by endless documents, outdated procedures, long calls and lengthy email exchanges. However, in recent times, a major change is definitely happening. Today, machine learning, artificial intelligence, cloud softwares, big data, new type of interconnected containers along with the increased availability and the reduced cost of the internet are the pivotal factors driving a new, disruptive technological revolution. And the key players dominating our industry are not sitting around. To support this statement, a research shows that investments into new shipping and logistics technology hit $3.3 billions in the last few years. A really impressive figure.

Riding the wave of this revolution, paper-based systems can be replaced by smoother digital processes and cloud-based solutions can be used to combine different sources of data including document management, the handling of logistics and supply chain components, let alone the arrangements of crews and resources. And this innovation boost does not stop here. 

As a matter of fact, the industry we are working in is extremely complex: there are many parties involved with different objectives as well as many sources of information to be processed. For instance, shipowners have to make sure their vessels are fully booked since the fleet is their most important investment and an under-utilised fleet means coping with unsustainable costs. In this case, shipping companies may take advance of a real-time view of potential voyages to ensure their ship or fleet is managed effectively. Shippers, on the contrary, have different needs: they just had to ship their cargo from point A to point B at the best price and service possible. In order to accomplish that, they need to consider a wide range of different prices and it is not always easy, considering shipping market a hugely volatile environment, with costs and values changing constantly. In the middle of this process we can also find the broker, an intermediary between the shipowner and the final client, gathering together all the requests and the details of both parties, offering the customer the best price possible.

Within this huge maze of data, the digital wave and specifically the Artificial Intelligence as well as Machine Learning can help us combining the needs of all these key players and all the elements above mentioned, presenting all the information gathered in an easier, more comprehensible way. On the one hand, carriers can make better pricing decision and more efficient investments, possibly forecasting future shipment volumes. On the other hand, the customer may have a better understanding of the market and its prices, resulting in taking faster and more efficient decisions.

We are in continuous evolution, now more than ever

As we said, shipping companies did not rest on their laurels, and MSC is at the forefront. In fact, in 2019, MSC, along with other important steamship lines (to name a few Maersk, CMA CGM, ONE, Hapag-Loyd, Evergreen) founded DCSA, the Digital Container Shipping Association. DCSA is a non-profit, independent organization firmly established on two main pillars: digitalization and standardization. Considering this last key word, one of its ambitious goal is to lead the industry to systematic collaboration, making container transportation services more transparent, reliable, easy to use, secure and environmentally friendly. To efficiently implement this challenging plan, DCSA recently issued the “Industry Blueprint”, a special document where all processes and terms commonly used in the container shipping industry are mapped out and validated by carriers, divided into three parts: shipment, equipment and vessel. To have a better understanding of this document (the new version of it has been recently issued), you can download it on the website https://dcsa.org/initiatives/industry-blueprint/.

As far as digitalization is concerned, DCSA’s other mission is to drive technology standards and frameworks. As we said before, many parties are involved in this process and the data landscape in the industry is surely complex. Carriers, customers and third parties use many different technologies, data definitions and data exchange methods when communicating with each other. For this reason, MSC, along with the other founding members, have published an innovative Track and Trace (T&T) standard for the global container shipping industry. The standard comprises a common set of processes as well as data that can be implemented by carriers, shippers and third parties to enable cross-carrier shipment tracking, where all the parties have a say in the matter. The current recommended standards for track and trace are developed across five general shipment phases: pre-shipment, pre-ocean, ocean, post-ocean and post shipment. Through the use of these standards, customers will be able to track containers across all nine carriers (the carriers who founded DCSA) and five shipping phases with uninterrupted visibility. The final objective in this case is that carriers will start using this standard and enable customers and supply chain participants to digitally communicate with all carriers in a unified way.

Bots, IoT, crewless vessel, smart containers - what to expect in the (very) near future

The wave of change does not stop here, but has in store for us new and exciting innovations. First and foremost, bots are more and more used in the shipping industry: from cleanup and maintenance to full-on driverless craft, robots are also incredibly useful during hazardous or potentially dangerous situations (just think about exposure to hazardous chemicals, toxic fumes or a high risk for fire or explosions).

Secondly, the Internet of Things (IoT) enables real-time tracking and monitoring of cargo at all levels (ship, truck, train, container, pallet, etc.) to determine location, settlements, and when and where cargo was delivered or compromised based on factor such as temperature, humidity, velocity, altitude, light, etc. In this case as well, DCSA is working at full capacity on it, focusing specifically on IoT solutions and specific devices installed on containers. In this context, smart containers are always more and more popular. In fact, this special type of container is a simple dry container equipped with electronics transmitting important data relating to the temperature, humidity, movement, type of shocks, door opening etc. so that the customer can be updated 24/7 with all the information related to the container he is using and its cargo. All this is possible thanks to the IoT solutions developed by some cutting edge companies using a special technology providing near real-time data and notification about the movement and condition of the cargo.

Last but not least, the fascinating bet on the crewless vessel. In fact, the world’s first autonomous cargo ship is expected to be ready and operating by the end of this year. The Norwegian-built Yara Birkeland will use GPS, radar, cameras, and sensors to navigate itself around other boat traffic and dock on its own. The Norwegian company will cut emissions as well but so far it will be just a pilot project and the autonomous vessel will carry just 100 containers. Having said that, in accordance with the last market trends, more investments are to be expected in the near future and the inauguration of the first MSC autonomous vessel could really be around the corner. 

In conclusion, with additions of innovative features such as robots, IoT, autonomous vehicles, smart containers and digital technology in general, the shipping industry, as we know it, is really set for drastic and impactful change. 

Just be prepared to be surprised!

Dimitrios Koulouriotis