It is easy to miss the historical connection between “risk” and reward in shipping. The core principle of carrying trade goods lies in leveraging an owner’s ability to find upfront funds and the rewards associated with building boats big enough and safe enough to make a profit on the commodity delivered.
When you add the power of AI, massive data sets, materials science and new technologies to the mix, the predictability of favorable outcomes increases radically. Connected technologies are revolutionizing everything from port operations, to the ships themselves
AI and Big Data: Crunching big numbers (Data)
The ability to turn big units of real-time data into practical working knowledge is already here. By processing massive amounts of data, you can optimize routes, predict potential delays, and even perform predictive maintenance before it becomes critical. Nucleus Research states that predictive maintenance cuts downtime by 35-50% and extends asset lifespans between 20-40%. Applied to the attritional marine sphere the “stitch in time saves nine” principle is particularly valuable, especially when human factors account for one of the major risks in maritime underwriting.
Autonomous Ships: The Future of Navigation (Automation and sensor tech)
A large commercial vessel has a crew of less than 20, a reasonably sized aircraft carrier has a few thousand. Imagine a ship without a crew, navigating the oceans with minimal human intervention. Autonomous ships, equipped with sensors, AI, and tight, commercial grade, GPS, are on the horizon. These ships could reduce human error, improve turnaround times and cut operational costs to the bare bones, touchpoints that relate right back to our introductory paragraph: Show me the digital tokens, Jerry!
According to Rolls-Royce, back in 2017, autonomous vessels could reduce shipping costs by as much as 22%. Pilot projects are already underway, such as the Yara Birkeland, the world’s first fully autonomous, low emission container ship, which will soon carry cargo between Norwegian ports.
Routing Software: Smarter shipping paths (GPS, weather data and sensor tech)
With shipping companies seeking to reduce fuel consumption and travel time, advanced routing software is becoming more important. This software uses AI with real-time data to optimize shipping routes, taking into account tides, cargo, wind direction, and other variables, like quantity of fuel and berthing times. Routing technology, such as StormGeo’s software, can cut fuel consumption by up to 10%.
Mega Ships: The need for advanced technology (Complexity, scale)
With the size of container ships continuing to grow, new technology is required to manage their complexity. Mega ships, such as the Ever Ace (which can carry over 24,000 containers), require cutting-edge technology for navigation, fuel management, and safety. These vessels rely heavily on IoT sensors to monitor everything from cargo shifts to fuel consumption. As ships become bigger, the integration of real-time data into logistics and tracking systems is crucial.
Blockchain: Documentation and port control (Communications, tracking)
Nobody said that port control and documentation is cutting edge. The big boys say that they can do a better job. When they push liberty, what they often mean is proprietary control for themselves, by themselves. IBM has no skin in this game. Maersk does, as the second largest shipper in the world.
Maersk and IBM have developed a blockchain-based system, TradeLens, which tracks containers from the moment they leave the port until they arrive at their destination, delivering the open ledger information at either side of the transit to port authorities. In theory, a digital documentation trail should be a transparent way of upgrading document control from current manual handling levels.
This one makes sense on paper, but will probably be a hard sell to regional authorities. According to the blurb; blockchain provides a secure, transparent ledger that allows all parties to access the same information in real time.
Robotics: Changing port operations (Robotics)
Thirty years ago robotics was a thing. Sixty years ago robotics was a thing. 100 years ago…you get it. Yet industrial robotics has been slowly inching their way into most industries. When we speak of industrial robotics the objective is to do a repetitive preformatted task repeatedly. When we envision robotics, what we see is a humanoid wearing metal pants or Boston Dynamics latest replica pooch. These two things are not the same.
Industrial robotics is increasingly playing a role in port operations. Automated cranes and connected vehicles are being used to load and unload containers faster and with greater precision. In the Port of Rotterdam autonomous trucks are already in use to transport containers within the port.
These advancements are speeding up the process of loading and unloading ships, reducing congestion and port delays. The International Maritime Organization (IMO) predicts that automated port operations could increase throughput by up to 20% by 2030. Maybe the right time to jump ship and take a job in robotics is now.
Looking Ahead: The Connected Shipping Future
The future of shipping is connectivity, intelligence, and automation. As ships become more autonomous and ports more automated, the need for cutting-edge solutions will only grow. The flip side is that those mega ports, mega ships and heavy infrastructure, are symbiotic. You cannot have one without the other. Meaning the bulk of smaller ports in less accessible locations will require different, more innovative, solutions based on the original criteria of risk and reward.
“How inappropriate to call this planet Earth when it is clearly Ocean.”
Arthur C. Clarke
