BRINGING INNOVATION TO LOGISTICS

Start-ups Set to Disrupt the Sector

Breakbulk Europe 2023 welcomed start-ups bringing technology and innovation to disrupt the logistics sector. Breakbulk spoke to two of the exhibitors about their products.

Aaron Spandehra, CBDO and cofounder of driveMybox, described his product as a digital platform for container transport, aimed at clients as well as transport companies and self-driving truck drivers. driveMybox’s goal is to solve the complexity and opaqueness of the transport market through an all-in-one solution. “In doing so, the entire transport process is digitized, from booking requests to cost processing, and all parties involved are brought together via a direct contact person: driveMybox.” Other features include dynamic route optimization, empty run avoidance, trucker matching, short payment terms and direct and “uncomplicated communication.”

Spandehra said the potential for change in the logistics industry is “gigantic,” which excites him to push for sustainable change in the sector. “In general, it is very difficult to introduce innovation and to be honest, it’s not always easy as a young start-up in the container transport industry since resistance to innovation is still very high. But this is exactly why we need to continue driving innovation in this sector to sustainably optimize it.” He continued that digital exchange can create transparency in the entire container transport industry. “We managed to build up a functioning network with qualified cooperation partners, which shows me that platforms like driveMybox are definitely the right way for long-term change in the container transport industry.” He therefore encourages other start-ups in the logistics industry not to be deterred by old and sluggish processes, but to be “brave” and take the opportunity to bring about change into this industry.

Still Progress to be Made

He noted that the understanding of the power of data and technology is still lagging and gave the example of administrative tasks carried out by a haulage company, which are still done manually. “They might be able to provide more capacity, but they are blocking themselves by the amount of administrative tasks,” he said. On the other hand, some larger transport companies that have invested in transport management systems only look at their own area, and not to their network. “Therefore, we can say that especially the haulage companies are not yet as digitally positioned and prepared for the future as they should be.”

Spandehra is used to countering objections from breakbulk and project cargo stakeholders on investment in technology. He tells them that technology is key. “We need digital change in the logistics industry and the ones that are not willing to participate and digitize themselves, will get kicked out sooner or later.”

Initially, driveMybox experienced skepticism on its new concept, but he acknowledged that the skepticism came from fear of technology and digitalization in general. “But we were able to convince our users how they can profit from digitalization and over the years, we are able to prove that digitalization is the future of logistics.”

Likewise, a lack of trust, standardization and transparency is holding back the evolution of this sector. “There is a huge lack of trust and standardization,” Spandehra said. “The average age in forwarding companies for example is between 45 and 50. Therefore, it is extremely difficult to pick up the old-established colleagues, to bring them along and convince them that they need to apply new processes in their daily work.

“We must get rid of the idea of perfectionism, and react flexibly and agilely without losing focus. Progress and innovation must be the ultimate goal, and we must not let ourselves get off track here.”

‘Digital Data Engine’

Liam Phelan, COO, and Wouter Hagens, head of business development, gave insight into their platform NautilusLog, a Hamburg-based shiptech startup that they claim is revolutionizing shipping through the development of a digital data engine. The start-up sets new standards in digitalization in the maritime industry and defines new business models via the platform.

The platform and digital logbook replace paper and analog processes to “transform data into added value via integrated know-how, stakeholders into partners, and obstacles into growth opportunities in the maritime industry,” said the executives.

Phelan and Hagens were attracted to the maritime sector as they saw it offered a “thrilling area for innovation and growth.” An industry that has been reliant on manual processes and outdated systems presents a significant opportunity for technological advancements, they said. “The prospect of revolutionizing operations through the integration of digital technologies, such as Internet of Things, artificial intelligence, and blockchain, is truly exciting. By leveraging these technologies, we can streamline processes, enhance safety and efficiency, reduce costs, and create sustainable solutions for the maritime sector.” They continued that the vastness and complexity of the maritime industry – with its global reach and interconnectedness – provides an “expansive canvas for our startup” to make a meaningful impact and contribute to the digital transformation of an industry that plays a crucial role in global trade and commerce.

However, they note the “noticeable gap” in understanding of the true potential of data and technology in the industry. “The industry’s traditional nature and the constant changes in regulations make it challenging for stakeholders to stay updated.” Also, the volume of paperwork in the maritime industry can be overwhelming, leading to slow processes and difficulties in managing documentation and followups. “While many people recognize the importance of data, they often lack the knowledge and tools to utilize it efficiently,” they said. “This is where our startup, NautilusLog, steps in to facilitate the digitalization of processes for assets both at sea and on land.” The platform provides 24/7/365 accessibility to various parties, promising to transform existing data into valuable and comprehensible insights for everyone involved. “We aim to bridge the understanding gap and empower stakeholders in harnessing the power of technology in the maritime sector.”

Offering Tangible Benefits

When countering objections from breakbulk and project cargo stakeholders on investing in technology, NautilusLog focuses on addressing specific concerns and demonstrating the tangible benefits a digitalization solution can bring to operations. “By actively listening to the feedback and requirements of stakeholders in the maritime industry, such as crew members, ship owners, ship managers, classifiers, and flag states, we have gained valuable insights into their pain points and challenges.” They added that their technology is designed to improve usability, efficiency, and user experience, taking into account the daily tasks and operations of stakeholders.

“Despite the industry’s traditional nature, we are dedicated to driving the digitalization of shipping and take pride in being pioneers in addressing the diverse needs of the business through our adaptable approach.”

However, a lack of trust, standardization, and transparency have been significant obstacles to the evolution of the maritime sector. “During our interactions with crew members and shipping companies, we encountered a strong desire to replace traditional logbooks with our digital application while on board,” Phelan and Hagen said. “However, regulatory limitations posed a challenge to implementing such changes. In response to the market struggles, our startup has actively worked on a solution by collaborating with other industry partners to develop a new ISO Standard, ISO 4891, for smart applications in ships and marine technology.”

The standard has been designed with a customer-centric approach, incorporating feedback from users through interviews,” they said. “By establishing a common framework and guidelines, this ISO Standard will enable the development, testing, and integration of smart applications, fostering greater trust, standardization, and transparency within the maritime industry.”

Carly Fields has reported on the shipping industry for the past 23 years, covering bunkers and broking and much in between.