Philip Nielsen The Key to Revolutionize today’s Merchant Shipping Industry is to Embrace Digitalization

In the recent years, the maritime industry has faced numerous challenges such as increasing competition, political uncertainty, regulatory complexities, the unprecedented pandemic, and the lack of people, globally, wanting to go and work at sea.

On the other hand, we are witnessing some huge technological advancements that offer to the shipping industry significant benefits, i.e., the increase of cheaper and global coverage of internet connectivity. At the same time, we have the appearance of many maritime startups, aiming to tackle a plethora of maritime industry challenges.

To navigate among the obstacles and take advantage of the tech developments and to ensure sustainable growth, embracing digitalization is a necessity.

Digitalization is the most effective way for the industry, to continue to deliver and grow in a sustainable manner as it provides operational efficiency, increases safety, and reduces costs. However, this “embracement” in order to succeed needs certain structure and some fundamentals in place. But before we tackle that, let’s discuss briefly what digitalization means to us in shipping.

Digitalization goes far beyond mere automation or the use of technological solutions, which involve the conversion of huge amounts of analog data into digital form. Digitalization is the blending of technology in every department and procedure in a shipping company.

A good example of Digitalization in maritime are marine E-Procurement platforms, that enable standardization, efficiency in the procurement process as they reduce the need for manual data entry work and provide transparency. Digitalization via robotics and AI offer unparalleled opportunities for enhancing operational efficiency of commercial vessels. For instance, in Hull cleaning, an underwater AI powered robot can perform hull grooming much faster and more efficiently than any diver can and without the risks involved. Data driven automatic Inventory management solutions can help the shipping industry free up frozen capital and reduce costs. As inventory on vessels often suffers from a lack of accurate data. Regarding Crew Health, medical care solutions that are affordable, reliable, and can operate in the demanding and the harsh marine environment ensure better medical care to crews onboard, also in better compliance with regulations and with ESG, result in increased crew confidence and help to avoid unnecessary deviations.

Furthermore Digitalization, requires that one encompasses a broader shift in mindset and organizational culture, embracing the potential of digital technologies and data per se, to drive innovation, efficiency, and increase safety of our current operations and even creating new perspectives and new offerings, which can be a source of new revenue streams.

That is exactly what we do here at Oriani. We are selecting the most mature (in terms of producing ROI) solutions and help shipping companies implement these digital solutions within their organization. This is not done overnight. Digitalization is not an IT project. Digitalization should grow across all the departments of a shipping company. This will assist achieving both short term objectives, i.e., providing immediate time/cost savings, as well as longer term benefits i.e., helping to make the most appropriate strategic decisions.

Regarding how to succeed in digitalization, here are some tips that we have learnt at Oriani and would like to share with you.

First, understand and restate again the basics. Digitalization is not A software. Digitalization is to put data at the epicenter of everything you do. Become data driven and in order to do that, you need to develop a clear and comprehensive digitalization strategy before starting to dive into digital initiatives. This strategy should align with your company’s overall goals as well as the resources you have. Remember, you can’t do everything overnight.

Try to identify specific areas, pain points, usually bottlenecks or inefficiencies where digitalization can bring the first small wins and give some initial value. Prioritize your initiatives realistically.

Before you invest in robust technological infrastructure (basic hardware and cloud base software), spend time to acquire digital Talent, find skilled and motivated personnel. This is crucial for smooth implementation and long-term success in embracing digitalization.

Foster Collaborations. Digitalization in the maritime sector will only advance if you work in sync with all the various stakeholders, internally and externally including all your technology providers and suppliers. Digitalization does grow in silos.

Keep in mind that digitalization is a continuous ongoing process. Sometimes it will get rough, just like the sea sometimes is and that is because digitalization is a journey. By maintaining a proactive positive hands-on approach, focusing on some first small wins, your company can embrace digitalization correctly and unlock its full potential in the maritime sector.