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BPI Network Study Says Global Maritime Shipping Industry is on Edge of Digitization Revolution

By Ken Briodagh June 20, 2017

The maritime industry and broader ocean supply chain are suffering from major and costly inefficiencies due to ineffective data sharing and poor cross-industry collaboration, according to a new report and industry survey recently released by the Business Performance Innovation (BPI) Network in coordination with Navis and XVELA, both part of Cargotec.

The study, entitled “Competitive Gain in the Ocean Supply Chain: Innovation That's Driving Maritime Operational Transformation,” is based on a global survey of more than 200 executives and professionals from terminal operators, carriers, logistics providers, vessel owners, port authorities, shippers, consignees and other members of the global ocean supply chain. The study was developed in partnership with maritime industry technology leaders, Navis and XVELA.

Download the study.

The study indicates that importers, exporters, container carriers, terminal operators, vessel owners and other stakeholders suffer from poor visibility and predictability around shipments and are losing money due to a lack of partner synchronization and insufficient data insight.

“Everyone benefits from collaboration and data sharing,” said Andreas Mrozek, Global Head Marine & Terminal Operations, Hamburg Sud Group, one of the world's largest container shipping lines. “It starts with the customers and moves to the carriers, then the terminal operators, vendors, freight systems, truck companies, and keeps going down the line. Closer collaboration is a compelling value proposition for each supply chain partner.”

Ninety percent of survey participants said real-time data access and information sharing was important to increasing the efficiency and performance of the shipping industry. About 82 percent said the industry needs to improve supply chain visibility. On average, surveyed executives estimated that each of a wide range of ocean supply chain processes could be improved by as much as 66 percent and no less than 55 percent if the industry updated its IT systems and improved its ability to share data with other members of the supply chain.

"Our study underscores the critical need for the shipping industry to improve collaboration and visibility through the adoption of new technology-driven models and processes," said Dave Murray, head of thought leadership, BPI Network. "Perhaps partly because the industry has been preoccupied and constrained by its economic challenges—but also because many of its members are just plain resistant to change—the industry has been far too slow to enter the digital age."

The report indicates that industry resistance to change, coupled with the industry's aging and inflexible IT systems, are key impediments to improving visibility and collaboration. Some 54 percent of respondents said the industry being slow to change was one the biggest roadblocks to improving collaboration, while 49 percent cited the cost and complexity of legacy systems.

"We are seeing accelerating technology innovation and upgrades as terminals and carriers alike embrace the age of digitization," said Benoit de la Tour, President, Navis and Head of the Software Business, Kalmar. "Last year alone, 43 terminals completed the implementation or upgrade of our N4 terminal system, more than double the amount of the previous year.  And we are seeing strong uptake this year, along with a more positive outlook in third-party research and media reports from some of the leading companies in the container shipping industry."




Edited by Maurice Nagle

Editorial Director

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