Sea News Issue 2

Sea News Issue 2 2018

Technology Issue

Cover Story Maritime industry ahead of other key sectors for IoT adoption

Also in this issue • Blockchain • Cyber Security • Drones • Technological Development

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EDITOR’S COLUMN

TECHNOLOGY

Editor’s Column Welcome to the second edition of Sea News digital magazine. This issue we are looking at digitalisation and technology. Having recently returned from SMM Hamburg it was the central theme of most of the conference sessions. What really struck me though were the stands, nearly all offering some kind of ‘Smart’ solution. What wasn’t so obvious was what problems they were really solving.

I have been saying at a number of recent conferences that if all we are going to do is take broken systems, add sensors and digitalise them, then we are not being innovators or fully embracing what ‘Smart’ shipping is really about. Working in silos but even with them digitalised it may help a little but isn’t what the sector needs. To really avoid a true innovator coming into the sector and disrupting it, we really need a new way of thinking. Dr Martin Stopford has it right when he talks about the need to look at ‘Transport Factories’ collaborating within supply chains. Data needs to flow from ship, ports and cargo owners seamlessly into one overarching platform, giving cargo owners the one thing they crave more than anything else - the transparency of where their goods are and when they are going to arrive at the end destination, in pristine condition and on time.

Blockchain is “a good technology,” but it’s not a “holy grail” and isn’t going to be the solution to all issues. In this issue we have asked a number of people to give us their views on what is currently happening in our world and their thoughts on what the future will hold for us. Inmarsat has also given us an exclusive in-depth look at their survey results, which in reality didn’t tell us anything new but re-confirmed what most of us thought but never had the evidence available before. It is to Inmarsat’s credit that we have this new take on the industrial internet of things.

Sue Terpilowski OBE, Senior Managing Editor © Dr Stopford is non-executive President of Clarkson Research Services Limited

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ISSUE 2 2018

Shahjahan Ahmed Publisher shah.ahmed@seanews.co.uk

Baibhav Mishra Deputy Editor baibhav.mishra@seanews.co.uk

Sue Terpilowski OBE Senior Managing Editor sue.terpilowski@seanews.co.uk

Ben Durston Designer studio@seanews.co.uk

Mike Godfrey Associate Editor mike.godfrey@seanews.co.uk

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TECHNOLOGY

CONTENTS

maritime

Contents

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INTERNET OF THINGS

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New Inmarsat research places maritime industry on a par or ahead of other key sectors for IoT adoption and usage

NEWS 3D TECHNOLOGY

CYBER SECURITY

4 True collaboration through 3D technology in ship design AUTOMATION 5 A first for the Port of Antwerp: innovative autonomous sounding boat with unique technology 7 Helm Operations and ShipTracks join forces BLOCKCHAIN 8 Maersk and IBM introduce TradeLens blockchain shipping solution 11

CargoX and Fracht AG mix tradition and blockchain to reshape the future of global trade

13 CargoSmart launches blockchain initiative to simplify shipment documentation processes

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Pirates move on as the new kids 66 appear on the screen

15 Geeba wants to disrupt local deliveries with blockchain, droids and drones 16 XPO Logistics to Deploy 5,000 Collaborative Warehouse Robots in North America and Europe 17 GoodFuels Marine and BLOC announce world’s first bunker delivery using blockchain technology

DRONES

Drone 68 technology:

A game changer for the shipping industry ISSUE 2 2018

CONTENTS

CLOUD SERVICES 18 Samsung Heavy Industries selects AWS as its preferred cloud provider CYBER SECURITY 20

Los Angeles and Antwerp Ports partner to host simultaneous International hackathon

TECHNOLOGY

TECHNOLOGICAL DEVELOPMENT 32 ABP to develop new technologies with Rolls Royce and Svitzer 34 Maersk Line goes live with CargoSphere digital rate distribution VIRTUAL REALITY

22 NCC Group and Moran Shipping Agencies work together on maritime cyber security

35 VR technology allows virtual ship visits

23 Naval Dome CEO Itai Sela comments on COSCO cyber-attack

INTERNET OF THINGS

DIGITALISATION 24 Hapag-Lloyd digitalises quotes and speeds up customer processes 25 Indian Register of Shipping implements electronic certificates for all its classed vessels

FEATURES 40 Modernizing the maritime supply chain BLOCKCHAIN 44

Customer experience is driving supply chain innovation, says report from Blujay Solutions and Adelante SCM

46 No reason to block out the future

ELECTRIFICATION

48 Blockchain Technology: 26 Damen embarks on Applications and Danish full electric public implications on the transport project for shipping industry Arriva 52 Are blockchain solutions advocates overpromising?

ENERGY TRANSITION Probably 28 Damen and Skoon Energy sign agreement 54 The rise of blockchain: Understanding public & for advancement of sustainable shipping private platforms solutions ARTIFICIAL INTELLIGENCE HIGH-SPEED INTERNET CONNECTIVITY 29

56 Transforming the global shipping industry with artificial intelligence

New satellite capacity enables Marlink’s cruising 60 The thoughts and views and superyacht customers of Captain VS Parani to use high-speed internet

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TECHNOLOGICAL DEVELOPMENT

Risks 74 impacting

the shipping industry 3D TECHNOLOGY 62 3D Printing: Revolutionising the shipping industry as we know it AUTOMATION 64 Automation, the future of sustainable shipping DRONES 70 Drones are the new buzz in the shipping industry SEAFARERS VERSUS TECHNOLOGY 72 Will seafarers drift as technology surfaces?

HUMOUR ON HIGH SEAS 76 My first steps through the gangway!

Cover Image (Image Courtesy: Via Satellite)

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TRUE COLLABORATION THROUGH 3D TECHNOLOGY IN SHIP DESIGN

3D TECHNOLOGY

True collaboration through 3D technology in ship design The new collaborative design capability is truly revolutionary in ship construction and has created an open dialogue between YSA Design and its partners, enabled by their transition from 2D design based on deck plans to 3D building information modelling. Mike Godfrey, Associate Editor reports.

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he IMO’s circular has gone to parties of the MARPOL convention and member states of the organisation for their appropriate action, if any, with the aim to inform governments worldwide and Port State Control MOUs on the use of ε-ΟRB on board ships.

software the traditional ORB hard copy until amendments to MARPOL Annex I on the use of electronic record books enters into force. This should not be too onerous for seafarers as the ε-ORB software was designed with the aim to help minimise errors and mistakes due to human element as well as assure best ORB recording practices.

The Liberian Government’s letter goes onto state that the electronic ORB can be used onboard after the vessel receives a ‘Declaration of MARPOL Electronic Record Book’ issued by the registry.

“I am delighted that the IMO has released the subject Circular to all parties as this vindicates our determination to develop this software with the aim to minimize errors and mistakes in oil record book entries,” said Petros Achtypis, CEO of Prevention at Sea.

Currently, Prevention at Sea encourages clients to place a copy of the said IMO Circular on board fleet ready for demonstration with the aim to act as evidence in case clarification is required by Port State Control Authorities and Safety Agencies.

“With the aim to support our clients with strong evidence, I am happy to deliver today the subject circular which proves that our software is worldwide recognized and ensures that ships will not face complications at any port.”

Those vessels using the ε-ORB will have to print from the

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INNOVATIVE AUTONOMOUS SOUNDING BOAT WITH UNIQUE TECHNOLOGY

NEWS AUTOMATION

A first for the Port of Antwerp: innovative autonomous sounding boat with unique technology A smart port thanks to innovative technology: that’s what the port of Antwerp is fast becoming. Mike Godfrey, Associate Editor reports.

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ow a new milestone has been reached with the introduction of a fully automatic sounding boat that employs unique technology in the Port of Antwerp. The vessel, named the Echodrone, is a prototype that is currently being developed to supplement the other operational sounding boat, the Echo. Both of these carry out measurements of the water depth everywhere in the port so as to guarantee safe

ISSUE 2 2018

passage for shipping. The cloud-based technology a first, has been developed in partnership between the Port Authority and dotOcean and is only one of the many initiatives being taken by the Port Authority in the field of digital innovation.

CONDITION MAINTENANCE SYSTEM Innovation is a powerful response to today’s fast-changing world and so is a main component of the future vision of Antwerp Port Authority. In collaboration with

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INNOVATIVE AUTONOMOUS SOUNDING BOAT WITH UNIQUE TECHNOLOGY

AUTOMATION

the port community, the Port Authority is constantly working to develop new technologies and methods and to incorporate them in its operations. “As a world-class player we as a port aim to be a leader in developing innovative concepts,” explains Piet Opstaele, Innovation Enablement Manager at Antwerp Port Authority. “In this way we are laying the foundations for the ‘smart port’ of the future in which digital technologies are used to make the land-based and water-based operations more flexible, responsive and efficient.”

SMART, AUTOMATIC SOUNDING One of the Port Authority’s responsibilities is inspection and maintenance of the maritime infrastructure, including the beds of the docks.

Regular measurements of the water depths at the berths and at all other points are carried out, both to ensure safe passage and mooring for ships and to plan the necessary maintenance dredging work.

So far this has been done using the Echo sounding boat, but now an innovative autonomous sister boat has been developed in collaboration with dotOcean in order to help with the work. The new vessel, named the Echodrone, is smaller than the Echo and is fully autonomous, operating on its own without anyone on board. This makes it more nimble and flexible so that it can even operate in heavy shipping traffic where the Echo would be unable to go.Wim Defevere, Senior technical manager nautical access of the Antwerp Port Authority: ”The Echodrone is currently undergoing extensive trials. Once these have been completed it

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will be based in the Deurganck dock where it will be fully operational alongside the Echo to measure the water depth of the available berths at the busiest of the tidal quays for handling containers.”

UNIQUE TECHNOLOGY: A FIRST Unique technology for guiding and operating the Echodrone has been developed in collaboration with dotOcean, a maritime technology company based in Brugge, Belgium. “This technology is based on assembling detailed information in the cloud,” explains dotOcean co-founder Koen Geirnaert. “Data from all sorts of devices throughout the port is made available over the internet and then selectively compiled and translated into useful information by algorithms in the cloud. The Echodrone is designed to navigate fully independently using this verified data, unlike the previous generation of automatic vessels that had to rely on their own onboard sensors. This makes the Echodrone one of the first of a completely new generation of robots.”

Piet Opstaele adds: “With the help of the Echodrone it will be possible in future to carry out other types of measurements, such as environmental surveys, inspecting quay walls and so on. This technology is a real breakthrough for us in our quest for smart solutions for the port of the future. It is also a good example of our role as an initiator and facilitator of innovative initiatives.”

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HELM OPERATIONS AND SHIPTRACKS JOIN FORCES

NEWS AUTOMATION

Helm Operations and ShipTracks join forces Helm Operations announced today that it has launched a new partnership with leading AIS data services provider ShipTracks. Sue Terpilowski OBE, Senior Managing Editor reports.

The tie-in is an important milestone for Helm Operations and the first of many according to CEO, Ron deBruyne. “With Helm CONNECT, we’ve grown from nothing to nearly 3000 assets using our software in just two years since entering the market. We’ve done that by bringing cutting-edge technology and approaches to the market. Moving forward, our goal is to work with other leading maritime technology companies to further the pace of innovation and provide better tools for our customers. Our work with ShipTracks is a great example of that approach.”

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he partnership will integrate the platforms developed by the two companies, allowing users of Helm CONNECT to seamlessly access vessel location and route data provided by ShipTracks. The is the first partnership between the two North American software companies.

Helm Operations is the developer behind Helm CONNECT, which provides vessel dispatch and billing, maintenance, compliance, and personnel management to some 3000 assets worldwide. Helm CONNECT is used by more than 40% of the American Waterways Operators fleet, the largest vessel-owning organisation in North America.

ShipTracks provides real-time vessel position information through AIS mapping.

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The partnership fits clearly with the vision that ShipTracks Founder and CEO, Charles Riley. “Our goal has always been to help vessel operators take advantage of the data provided by AIS technology, allowing them to run their businesses and their assets more effectively and efficiently”, says Charles. “We see great value in partnering with Helm Operations. By tying our software platforms together, it makes both products better for our users and will provide greater business intelligence to our customers.”

The first version of the integrated features will be available to all customers of Helm CONNECT in the company’s summer update, due for release in early August. This integration is the only the first step in collaboration for the company.

“Working with ShipTracks, we’ve developed an infrastructure that will allow us to expand the capabilities of our integration going forward, and we’re actively exploring integrating more advanced ShipTracks’ features like geo-fencing and operational alarms into Helm CONNECT as we move forward,” says Helm CONNECT Product Manager Andrew Kroesen.

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NEWS

MAERSK AND IBM INTRODUCE TRADELENS BLOCKCHAIN SHIPPING SOLUTION

BLOCKCHAIN

Maersk and IBM introduce TradeLens blockchain shipping solution Industry-wide collaboration announced in January advances as more than 90 organizations participate in the global trade solution. Mike Godfrey, Associate Editor reports.

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ore than 154 million events captured on the platform and growing by one million per day.

In a follow up to their January announcement, A.P. Moller – Maersk and IBM recently announced the creation of TradeLens, jointly

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developed by the two companies to apply blockchain to the world’s global supply chain. TradeLens is the result of a collaboration agreement between Maersk and IBM, a blockchain-enabled shipping solution designed to promote more efficient and secure global trade, bringing together various parties to support

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MAERSK AND IBM INTRODUCE TRADELENS BLOCKCHAIN SHIPPING SOLUTION

NEWS BLOCKCHAIN

information sharing and transparency, and spur industry-wide innovation.

As part of the TradeLens early adopter program, IBM and Maersk also announced that 94 organizations are actively involved or have agreed to participate on the TradeLens platform built on open standards. The TradeLens ecosystem currently includes: •

More than 20 port and terminal operators across the globe, including PSA Singapore, International Container Terminal Services Inc, Patrick Terminals, Modern Terminals in Hong Kong, Port of Halifax, Port of Rotterdam, Port of Bilbao, PortConnect, PortBase, and terminal operators Holt Logistics at the Port of Philadelphia, join the global APM Terminals’ network in piloting the solution.

This accounts for approximately 234 marine gateways worldwide that have or will be actively participating on TradeLens.

•

Pacific International Lines (PIL) have joined Maersk Line and Hamburg Süd as global container carriers participating in the solution.

•

Customs authorities in the Netherlands, Saudi Arabia, Singapore, Australia and Peru are participating, along with customs brokers Ransa and Güler & Dinamik.

•

Participation among beneficial cargo owners (BCOs) has grown to include Torre Blanca / Camposol and Umit Bisiklet.

•

Freight forwarders, transportation and logistics companies including Agility, CEVA Logistics, DAMCO, Kotahi, PLH Trucking Company, Ancotrans and WorldWide Alliance are also currently participating.

TradeLens uses IBM Blockchain technology as the foundation for digital supply chains, empowering multiple trading partners to collaborate by establishing a single shared view of a transaction without compromising details, privacy or confidentiality.

Shippers, shipping lines, freight forwarders, port and terminal operators, inland transportation and customs authorities can interact more efficiently through real-time access to shipping data ad shipping documents, including IoT and sensor data ranging from temperature control to container weight.

Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in international trade. The trade document module, released under a beta program and called

ISSUE 2 2018

ClearWay, enables importers/exporters, customs brokers, trusted third parties such as Customs, other government agencies, and NGOs to collaborate in cross-organizational business processes and information exchanges, all backed by a secure, nonrepudiable audit trail.

During the 12-month trial, Maersk and IBM worked with dozens of ecosystem partners to identify opportunities to prevent delays caused by documentation errors, information delays, and other impediments. One example demonstrated how TradeLens can reduce the transit time of a shipment of packaging materials to a production line in the United States by 40 percent, avoiding thousands of dollars in cost. Through better visibility and more efficient means of communicating, some supply chain participants estimate they could reduce the steps taken to answer basic operational questions such as “where is my container” from 10 steps and five people to, with TradeLens, one step and one person.

More than 154 million shipping events have been captured on the platform, including data such as arrival times of vessels and container “gate-in”, and documents such as customs releases, commercial invoices and bills of lading. This data is growing at a rate of close to one million events per day. Traditionally, some of this data can be shared through the EDI systems commonly used in the supply chain industry but these systems are inflexible, complex, and can’t share data in real-time. Too often, companies must still share documents via email attachment, fax and courier. TradeLens can track critical data about every shipment in a supply chain, and offers an immutable record among all parties involved.

“TradeLens uses blockchain technology to create an industry standard for the secure digitisation and transmission of supply chain documents around the world,” commented Peter Levesque, CEO of Modern Terminals. “This initiative will generate tremendous savings for our industry over time while enhancing global supply chain security. Modern Terminals is pleased to participate as a Network Member in testing this exciting shipping industry innovation.”

“As a global logistics provider, CEVA sees a unique opportunity in TradeLens, joining forces with IBM, Maersk and other actors from our industry to promote global standards around an open and neutral solution, delivering on the promise of blockchain. It is an important step in our relentless journey to deliver increased value to all our customers and making

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MAERSK AND IBM INTRODUCE TRADELENS BLOCKCHAIN SHIPPING SOLUTION

BLOCKCHAIN

business flow,” said Christophe Cachat, CIO of CEVA Logistics.

“We believe blockchain can play an important role in digitising global shipping, an area of the global economy that moves four trillion dollars of goods every year. However, success with the technology rests on a single factor -bringing the entire ecosystem together around a common approach that benefits all participants equally,” said Bridget van Kralingen, senior vice president, IBM Global Industries, Solutions and Blockchain. “Our work with Maersk and other enterprises in the shipping ecosystem has shown that blockchain can be used to form a strong, connected network in which all members gain by sharing important data and that together we can transform a vital part of how global trade is conducted.”

JOINT COLLABORATION MODEL TO MAXIMISE INDUSTRY ADOPTION Since announcing the jointly developed solution to digitise global trade in January 2018, and based on feedback from various members of the global supply chain ecosystem who would like to adopt the technology, IBM and Maersk have modified

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the go-to market model and will now deliver their solution through an extension of their pre-existing collaboration agreement instead of a joint venture.

“Our joint collaboration model allows us to better address key feedback from ecosystem participants while ensuring TradeLens inter-operability and data protection among Maersk, IBM and all ecosystem participants,” said Mike White, TradeLens leader for Maersk. “We strongly believe this will maximise industry adoption.”

Standards discussions are actively underway with openshipping.org and work to align the TradeLens APIs with UN/CEFACT standards is in progress. The TradeLens APIs are open and available for developer access and feedback from participants in the platform.

The TradeLens solution is available today through the Early Adopter Program. TradeLens is expected to be fully commercially available by the end of this year.

For more information about TradeLens and what ecosystem participants are saying about this solution, please visit: http://www.tradelens.com/

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CARGOX AND FRACHT AG MIX TRADITION AND BLOCKCHAIN TO RESHAPE THE FUTURE OF GLOBAL TRADE

NEWS

BLOCKCHAIN

CargoX and Fracht AG mix tradition and blockchain to reshape the future of global trade CargoX, the producer of electronic blockchain-based Smart Bill of Lading solution, has signed a partnership agreement with Fracht AG, the independent, Swiss, family-owned company with over 100 offices and more than 1200 employees. Baibhav Mishra, Associate Editor reports.

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his move gives Fracht AG the means to use the CargoX Smart B/L with its business customers.

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Fracht AG has been a family-owned Swiss freight forwarder since 1955, and they are the market specialists for turn-key transport projects. Their goal is to deliver innovative, tailor-made logistics solutions

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CARGOX AND FRACHT AG MIX TRADITION AND BLOCKCHAIN TO RESHAPE THE FUTURE OF GLOBAL TRADE

BLOCKCHAIN

that give their customers quantifiable added value.

The company achieves this through its dedicated personnel, long-standing experience, and the cutting edge in information technology. Furthermore, the company’s relationships with customers, subcontractors, and employees are guided by an attitude of partnership. Fracht AG is well known as extremely environmentally friendly. It puts great emphasis on safety, and it sees information technology as a market differentiator.

the speed and flexibility. This is why start-ups and smaller companies have success in the world. And while we are older and a little bit bigger, our philosophy and mentality have remained all these years just like a start-up’s and this makes us successful. And now we teamed up with, in our opinion, the best start-up, the one that will bring in blockchain in shipping and in the Bill of Lading – it is called CargoX,” emphasised Ruedi Reisdorf, CEO and 2nd generation owner of the company.

It is Fracht’s understanding that an increasing number of enterprises are accepting that efficient logistics directly produces a decisive competitive advantage. The requirement for effective logistics strategies is being driven by globalisation, the fragmentation of markets, and the need for IT systems that effectively support logistics processes. The successful implementation of logistics systems that generate genuine added value often requires the direct involvement of professional logistics experts.

The innovative CargoX Smart B/L platform lets companies issue and handle original bills of lading on the Ethereum blockchain network, facilitating the digital transfer of the ownership of the bill of lading and thus the related assets from issuer, to shipper, to consignee, to release agent. This creates the first fully digital, paperless, and secure original bill of lading solution on earth.

In the years since it was founded in 1955, FRACHT Ltd. has demonstrated its competence in countless major international projects, long before the term ’logistics’ had gained the broad currency that it enjoys today. As with major projects, it is crucial to consider logistics solutions in context.

“As service providers we must be able to ’step into our customer’s shoes’ and impartially choose the best available options. We have made various tests on the use of blockchain in shipping and forwarding and the Bill of Lading is exceptionally suited, being a document of value that exchanges hands and needs to be secure.

We always had the opinion that there would be a revolution in the digitalisation of shipping, in communication and documentation, and therefore we thoroughly studied all the different aspects of digital online development. Then along came blockchain technology and we began studying the potential uses, apart from Bitcoin, which can be looked at critically, whether it really makes sense or whether it will just be a footnote in history. But look at the internet bubble two decades ago. It busted, but the internet still is ‘the thing’. Similar stories can happen with Bitcoin and blockchain. Blockchain is ‘the thing’, but in our opinion also only for some uses and not for everything in the world. It is very good for trade and one of the very best uses, if not the best, is the use for the Bill of Lading.

We are from the only ones that have come to the same conclusion. Others are bigger and they therefore lack

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With the introduction of the CargoX Smart B/L, Fracht AG will harvest the benefits of a modern blockchainbased solution: ultimate reliability, safety and much higher speed of transfer of documents between process partakers, as opposed with the current, paper-based transfer.

The Bills of Lading will be created and transferred in a matter of minutes and for a mere fraction of the current cost.

All document archives will be readily available in the encrypted cloud storage. This approach will enable the logistics companies to reduce the amount of paper used, save time and money.

The CargoX Smart B/L solution has already been thoroughly tested by CargoX’s partners, and it is production ready.

“Fracht is one of the companies we look up to, as they prove that change is the only constant in business.

They are always looking at how to adapt to business, where to find new opportunities, and how to always keep in mind the global common good. It is very similar to the idea how we designed our solution – by looking at the whole picture and anticipating what the future will bring. Not just profits, but optimal workflows, new technologies, and a multitude of benefits, from speedier and safer document ownership transfer, to optimised financial flow. CargoX is proud to have Fracht AG as partner” said Stefan Kukman, CEO and founder of CargoX.

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CARGOSMART LAUNCHES BLOCKCHAIN INITIATIVE

NEWS BLOCKCHAIN

CargoSmart launches blockchain initiative to simplify shipment documentation processes Permissioned blockchain global logistics platform to empower supply chain parties to increase document accuracy, efficiency, and traceability.

Mike Godfrey, Associate Editor reports.

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argoSmart, a global shipment management software solutions provider, today announced its initiative to develop a blockchain solution for shipment documentation to improve complex supply chain processes. The solution establishes a digital baseline for trusted shipment documentation management across the shipping and logistics industry. Shippers, forwarders, carriers, truckers, and customs agencies will be able to collaborate more efficiently through the platform for a single version of truth and an immutable audit trail with low latency.

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Shipping document handling processes are complex and include dated paper processes that involve many stakeholders across countries. In addition, companies in global shipping have very diverse technical capabilities and data standards, exchanging documents in many formats including email, online forms, and Electronic Data Interchange (EDI). On average, a single shipment can involve more than 30 documents exchanged by all parties, often with multiple revisions due to human errors, before it leaves port.

CargoSmart’s blockchain solution aims to simplify the

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CARGOSMART LAUNCHES BLOCKCHAIN INITIATIVE

BLOCKCHAIN

shipping documentation process, increase trust, and boost efficiency. Connected through a blockchain documentation platform, the entire shipping ecosystem can reduce disputes, avoid late penalties from customs agencies, expedite documentation turnaround times, and better manage detention and demurrage costs. CargoSmart projects a 65% reduction in the amount of time required to collect, consolidate, and confirm data from multiple parties and to handle shipping data that is repetitive in different documents by leveraging its blockchain shipment documentation solution.

Document handling is particularly extensive for shippers and their logistics service providers with specialised cargo. For example, shipping dangerous goods requires numerous certificates to state that declared goods are classified and packed correctly.

Some of the shipping document contents are filled repeatedly into different declaration forms.

CargoSmart’s blockchain solution reduces the risk of mis-declaration and speeds up the filing process.

When documents are submitted accurately and timely, the cargo can continue to move according to plan.

“Blockchain technology provides immutable records and a trusted network to offer secure and traceable documentation,” said Steve Siu, chief executive officer of CargoSmart. “Providing a solution for supply chain parties to auto-fill repeated and verified information

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can dramatically increase data accuracy and efficiency for the whole logistics process.”

CargoSmart has been working closely with Oracle, which recently launched Oracle Blockchain Cloud Service. Oracle’s blockchain platform enables organisations to easily build blockchain networks to drive more secure and efficient transactions and to track goods through supply chains on a global scale.

Its enterprise-grade architecture, interoperability and decentralised governance model make it ideal for organising and tracking international shipments through all involved parties. CargoSmart will continue working with Oracle to build comprehensive blockchain networks with breadth and depth to serve key customers.

“Maritime shipping is essential to global trade, but it often suffers from inefficiencies in the complex documentation processes across many involved parties,” said Amit Zavery, executive vice president, Oracle Cloud Platform. “CargoSmart’s new solution, powered by Oracle’s blockchain cloud platform can help engender trust and confidence in the ecosystem.

Its gives users across the entire shipping ecosystem a trusted, secure, scalable, and resilient means to share information, helping to speed up turnaround time, reduce disputes and lower costs.”

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GEEBA WANTS TO DISRUPT LOCAL DELIVERIES WITH BLOCKCHAIN, DROIDS AND DRONES

NEWS BLOCKCHAIN

Geeba wants to disrupt local deliveries with blockchain, droids and drones It seems the sky’s the limit when it comes to blockchain applications, and one company, in particular, has taken that concept quite literally. Mike Godfrey, Associate Editor reports.

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nter Geeba, a Qatari-founded, Rotterdamincubated delivery startup that wants to “disrupt the economy of local deliveries” by turning to the unlikely combination of blockchain, droids, and drones.

sharks” who often rely on local subcontractors at the expense of both time and money. To counter this, Geeba wants to create a community-driven network of “decentralised” distribution hubs within its key areas of operation.

Beginning as a joint venture between Doha-based autonomous vehicle logistics company Airlift and n-Gon, a company specialising in applications for UAVs (Unmanned Aerial Vehicles), the newly-formed Geeba turned its hardware and experience to ‘last-mile’ deliveries, the final leg of the delivery process where a package is taken from a central hub to the consumer’s door.

The owners of these ‘Smart Hubs’ are incentivised by a portion of delivery fees and each one will serve as a local base for a delivery fleet (drones or droids, depending on the locale and terrain), with the entire transaction – from the order, confirmation and verification of delivery – recorded and stored on Geeba’s own blockchain.

According to the group’s founder and MD, Amr Abdelhady, it’s a space dominated by “a few big

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XPO LOGISTICS TO DEPLOY 5000 COLLABORATIVE WAREHOUSE ROBOTS

BLOCKCHAIN

XPO Logistics to Deploy 5,000 Collaborative Warehouse Robots in North America and Europe Intelligent automation improves worker productivity and speeds distribution.

Sue Terpilowski OBE, Senior Managing Editor reports.

improve fulfilment time and cut costs. The addition of 5,000 collaborative robots will make our logistics operations safer and more productive in picking, packing and sortation. These are important benefits for our customers - particularly in the e-commerce and omnichannel retail sectors, where order speed and accuracy are essential ways to compete.”

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PO Logistics, Inc. a global provider of transportation and logistics solutions, announced on 3 October, plans to deploy 5,000 intelligent robots throughout its logistics sites in North America and Europe. The robots, which are designed to collaborate with humans, will supplement XPO’s existing workforce and support future growth.

XPO has a strategic partnership with robotics manufacturer GreyOrange Pte. Ltd. that makes XPO the exclusive logistics provider for use of its robots in North America, the United Kingdom and eight European countries.

Bradley Jacobs, chief executive officer of XPO Logistics, said, “We’ve developed our logistics technology to integrate the latest intelligent automation and adapt it at lightning speed. This allows us to dramatically

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The autonomous robots are part of a modular goodsto-person system that also includes mobile storage racks and fulfilment stations. Each robot can move a rack weighing approximately 1,000 to 3,500 lbs., bringing it to a station where a worker fulfils up to 48 orders simultaneously. The entire process is controlled

by XPO’s proprietary warehouse management system.

This high-speed, flexible solution supports same-day and next-day deliveries by shortening order-toshipment times and helping workers minimize walk-time and manual errors.

XPO’s latest robotics implementation is part of the company’s planned $450 million investment in technology this year. Other recent innovations include the XPO Direct shared-space distribution network, voice integration with Amazon Echo and Google Home to track the last mile delivery of heavy goods, and the XPO Connect digital freight marketplace with multimodal infrastructure.

ISSUE 2 2018

OODFUELS MARINE AND BLOC ANNOUNCE WORLD’S FIRST BLOCKCHAIN BUNKER DELIVERY

NEWS BLOCKCHAIN

GoodFuels Marine and BLOC announce world’s first bunker delivery using blockchain technology GoodFuels Marine, the world’s first supplier of sustainable low carbon marine fuels, and blockchain technology and governance experts Blockchain Labs for Open Collaboration (BLOC), have successfully completed the world’s first bunker delivery and transaction using blockchain technology. Sue Terpilowski OBE, Senior Managing Editor reports.

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he delivery, made to a Samskip vessel via a REINPLUS FIWADO Bunker barge in Rotterdam on September 7th, represents a landmark moment for the shipping industry, which has traditionally been beset by quality and quantity disputes when fueling vessels. Unlike traditional bunker delivery notes (BDN), a paper document still widely used in the industry, blockchain – a decentralised, distributed and public digital ledger – provides end-to-end traceability of marine bunkering transactions from storage, to the barge or jetty, and on to the vessel’s fuel tank, thereby providing assurance to shipowners, shippers and charterers. The landmark also represented the first transaction for Maritime Blockchain Labs (MBL), an initiative by BLOC of blockchain pilot projects conducted in collaboration with blockchain practitioners and industry actors. In addition, the event marked the first sustainable low carbon marine fuel delivery as part of the GoodShipping Program, which is part of MBL. The GoodShipping Program requires shippers to commit to a reduction in their sea freight CO2 emissions by purchasing sustainable biofuels, based on the premise that, as all CO2 from container shipping is emitted into the same atmosphere, it doesn’t matter which vessels take on biofuel, as long as it is traceable.

Dirk Kronemeijer, CEO and Founder, GoodFuels Marine, commented: “For too long shipping has been reliant upon paper transaction notes when bunkering, which expose

ISSUE 2 2018

shipowners, shippers and charterers to the potential of being misled on the quality and quantity of fuel. At GoodFuels, we are always striving to break convention – not for the sake of it, but because in this era there is no technological barrier to providing customers better assurance.

“In addition, for GoodFuels Marine, as the world’s first supplier of sustainable ‘drop-in’ marine biofuel, we realise we have to go beyond current standards to ensure traceability. This transaction – the first of many to come – shows the confidence we have in delivering ‘on spec’, sustainable low carbon fuel.” Deanna Macdonald, CEO, BLOC, added: “This project not only allows us to validate the value of blockchain technology in the marine fuels supply chain, but also to identify incentives to ensure that users input correct information into systems, and that any technology and systems created can be used as widely as possible. “The bunker industry – with its multiple large volume transactions, and history of fraudulent claims – provides an ideal platform to examine where blockchain’s digital platform can be utilised to increase transparency, and create better compliance and strong governance. The fact that the first transaction was for low carbon fuel makes both the project and the opportunity for the future all the more exciting.”

Sea News 17

NEWS

SAMSUNG HEAVY INDUSTRIES SELECTS AWS AS ITS PREFERRED CLOUD PROVIDER

CLOUD SERVICES

Samsung Heavy Industries selects AWS as its preferred cloud provider Amazon Web Services, Inc. (AWS), an Amazon.com company (NASDAQ: AMZN), announced that Samsung Heavy Industries selected AWS as its preferred cloud provider to support its digital transformation.

Sue Terpilowski OBE, Senior Managing Editor reports.

S

amsung Heavy Industries is turning to AWS’s expansive infrastructure, unmatched performance, scalability, and industry-leading services to gain competitive advantage in the smart shipping industry. Samsung Heavy Industries leaves the heavy lifting of its infrastructure to AWS,

18 Sea News

the world’s leading cloud, so that its team can rapidly innovate on its autonomous shipping platform, a system that enables self-piloting of large container ships, LNG carriers, and floating production systems.

Samsung Heavy Industries will continue to expand its smart shipping capabilities using the breadth and

ISSUE 2 2018

SAMSUNG HEAVY INDUSTRIES SELECTS AWS AS ITS PREFERRED CLOUD PROVIDER

NEWS CLOUD SERVICES

depth of AWS’s services, including machine learning, augmented reality and virtual reality, analytics, databases, compute, and storage.

Samsung Heavy Industries’ next-generation smart shipping systems on AWS leverage a wide variety of services, including Amazon Elastic Compute Cloud (Amazon EC2), Amazon Relational Database Service (Amazon RDS), Amazon Simple Storage Solution (Amazon S3), AWS Key Management Service (KMS), and AWS CloudTrail to create integrated systems for all vessel-related data collected from land to sea.

AWS enabled Samsung Heavy Industries to build a big data analytics ship navigation system using Amazon Redshift which improves after-market customer service for ship owners. Samsung Heavy Industries also leverages AWS machine learning services, including Amazon Polly and Amazon Lex, to provide real-time alerts to its customers about the condition of their ships, and will use Amazon Sumerian to create a virtual replica of the ship cockpit for land-based training and simulations. In addition, by using AWS, Samsung Heavy Industries was able to build an information security management system to respond to cyber threats and is able to provide a highly scalable, secure environment for smart ship technology development, becoming the first Korean smart ship maker to meet compliance requirements of the American Bureau of Shipping (ABS).

“We’re digitizing our shipping fleet by using the most advanced technologies in the world to enhance our approaches to shipbuilding, operations, and delivery, and chose AWS as our preferred cloud provider to help

ISSUE 2 2018

us quickly transform Samsung Heavy Industries’ into a cloud-first maritime business,” said Dongyeon Lee, Director of Ship & Offshore Performance Research Center at Samsung Heavy Industries. “By leveraging AWS, we’ve successfully released several smart shipping systems so that our customers can manage their ships and fleets more efficiently, and we continue to test new capabilities for ocean-bound vessel navigation and automation. AWS delivers a highly flexible environment, with the broadest and deepest portfolio of cloud services, that is ideal for accelerating research and development across the company, and it has enabled our developers and data scientists to bring new ideas to market at an unprecedented pace.”

“Leading companies in the industrial space are choosing AWS for the best performance, highest availability, greatest scalability, and an unmatched set of services that enable them to evolve their unique businesses in the cloud,” said Mike Clayville, Vice President, Worldwide Commercial Sales at AWS. “We’re excited to be fueling Samsung Heavy Industries’ digital transformation, providing them with the services and expertise to rapidly innovate on behalf of their maritime customers and establish a cloud-first strategy on AWS. Their autonomous and smart shipping systems built on AWS will not only enhance their competitive edge, but also bring significant advances to the worldwide shipping industry. We look forward to continuing to support Samsung Heavy Industries on their journey with AWS.”

Sea News 19

NEWS

LOS ANGELES AND ANTWERP PORTS PARTNER TO HOST SIMULTANEOUS INTERNATIONAL HACKATHON

CLOUD SERVICES

Los Angeles and Antwerp Ports partner to host simultaneous International hackathon Organized under the ‘chainPORT’ initiative, the “Hackathon”competition seeks new technology solutions for the port and maritime industry.

Mike Godfrey, Associate Editor reports. for the third consecutive year and we look forward to seeing the ideas that emerge from this unique and unconventional approach to technology development.”

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n an effort to spur technology-based innovation in the port and maritime environment, the Port of Los Angeles and Port of Antwerp in Belgium are hosting an international “Hackathon.” The technology competition will take place October 11-13, 2018 simultaneously in the two cities and involve participants from around the world.

The Hackathon has been organized under the chainPORT initiative, a collaboration of twelve leading ports launched in 2015 to digitally connect ports worldwide, share best practices for handling the largest containerships in the global fleet and boost efficiency within the global maritime supply chain.

“Ports must continue to incorporate the latest and most promising technologies in order to remain competitive in today’s dynamic global supply chain environment,” said Gene Seroka, executive director of the Port of Los Angeles.

“The Port of Los Angeles is pleased to host a Hackathon

20 Sea News

The Hackathon will be open invitation, encouraging teams from various backgrounds and professions to work together on a set of local and global challenges. Challenge subjects will include inter-port information sharing, mobility, safety and security. Ideas will be presented to a jury of experts on the event’s final day, and winners’ ideas may be further developed and implemented through a special business and academic follow-up track.

The Los Angeles chapter of the Hackathon will be held October 12 and 13 at the USC Marshall Center for Global Supply Chain Management. The two ports are currently recruiting industry professionals, students and coaches to participate in the Hackathon. More information can be found at www.chainporthack.com or by email at info@ chainporthack.com.

The Port of Los Angeles is America’s premier port and has a strong commitment to developing innovatively strategic and sustainable operations that benefit Southern California’s economy and quality of life. North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $284 billion in trade during 2017. San Pedro Bay port complex operations and commerce facilitate one in nine jobs in the five-county Southern California region.

ISSUE 2 2018

Considered Amsterdam?

The greatest port you never thought of.

Yes, that’s us, down there. Yes, you know us as a prime tourist destination and a business service hub.

But did you know that in the port of Amsterdam we have one of Europe’s largest biorefinery clusters?

The port also has reliable infrastructure, logistics providers and terminals, utilities, feedstock and markets literally at spitting distance. Schiphol Airport is, as you know, just around the corner. We reserved space for your business to grow: Biopark Amsterdam. So consider Amsterdam, you are more than welcome to join us! Discover our success stories on portofamsterdam.com

NEWS

NCC GROUP AND MORAN SHIPPING AGENCIES WORK TOGETHER ON MARITIME CYBER SECURITY

CYBER SECURITY

NCC Group and Moran Shipping Agencies work together on maritime cyber security Global cyber security and risk mitigation expert, NCC Group and Moran Shipping Agencies, Inc. have announced their strategic alliance in maritime cyber security. Mike Godfrey, Associate Editor reports.

Compliance, said: “New technologies emerge all the time which offer us exciting, additional capabilities.

ABP is always looking to make these new technologies work for us and our customers. Where a solution does not yet exist, we will work with companies of the calibre and expertise of Rolls Royce and Svitzer to invent them and bring them into service.

“A sustainable future for ABP means a constant effort to be greener, safer and more efficient, so that we can continue to play a crucial role in Britain’s economy, industrial infrastructure and local communities.”

A

tri-party Memorandum of Understanding (MOU), was instigated by ABP’s Director of Marine & Compliance, Mike McCartain and signed during a ‘kick off’ workshop at ABP’s Port of Southampton recently. The meeting was also attended by representatives of the Department for Transport and the Maritime and Coastguard Agency.

The agreement means that ABP will work with Rolls Royce and Svitzer, to develop the innovative technologies and systems needed to operate efficiently and sustainably well into the 21st century. The areas the companies will focus on will include intelligent asset management solutions and dynamic positioning systems, amongst a range of potential innovations.

Mike

22 Sea News

McCartain,

ABP’s

Director

of

Marine

Kevin Daffey, Rolls-Royce, Director Engineering & Technology and Ship Intelligence, said: “Rolls Royce has a long, successful heritage in UK innovation in engineering and we are proud to be bringing this to bear in working with the UK’s largest ports operator, ABP. We are confident that we can work together with ABP and Svitzer to deliver the technologies that will keep the UK competitive in the future.”

Lise Demant, Global Chief Commercial Officer of Svitzer, said: “As the world’s leading towage operator, we are pleased to share our expertise within maritime services with heavyweights such as ABP and Rolls Royce, in our joint pursuit of safer and more efficient port operations through technological advancements.”

&

ISSUE 2 2018

NAVAL DOME CEO ITAI SELA COMMENTS ON COSCO CYBER-ATTACK

NEWS CYBER SECURITY

Naval Dome CEO Itai Sela comments on COSCO cyber-attack Recent reports that cyber hackers have successfully attacked COSCO Shipping Line’s Long Beach customer service centre, is very worrying indeed. Mike Godfrey, Associate Editor reports.

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hile COSCO shut down its connections as a precautionary measure, we have to emphasise that ships are not islands, they are not self-contained units. This is a mistaken belief. Shore and ship-operations are cyberconnected.

If shore-based and ship-based IT systems are linked, it could open a gateway to the COSCO ships, leaving them highly susceptible to an attack. Vessels do not need to be attacked directly but an attack can arrive via the company’s shore-based IT systems and very easily penetrate the ships’ critical OT systems.

Although COSCO have been quick to respond to this hack, the virus may have been dormant for some

ISSUE 2 2018

time, so I would not be surprised if other systems – shore- and ship-based systems – were breached.

This kind of attack could have spread through the entire fleet and its consequences might be devastating, and certainly costly, especially in terms of insurance. We strongly recommend to whoever discovered the attack, to thoroughly verify the breach has been contained and has not infected any ships in the COSCO fleet.

This cyber-attack, like the Maersk attacks last year, will no doubt send shockwaves throughout the industry and encourage board members to take immediate, effective protection. Regulators need to implement workable rules and guidelines to help this vitally important global industry defend itself properly.”

Sea News 23

NEWS

HAPAG-LLOYD DIGITALISES QUOTES AND SPEEDS UP CUSTOMER PROCESSES

DIGITALISATION

Hapag-Lloyd digitalises quotes and speeds up customer processes After a successful global implementation, Quick Quotes is now opened to the public with immediate effect. Baibhav Mishra, Associate Editor reports. transparency on the detailed pricing. This enables a faster, easier and more convenient quotation process for container shipments worldwide and around the clock.

To get an online quotation for a shipment, all one has to do is log in via the Hapag-Lloyd website, choose the start location and end location as well as a commodity and container type. Customers will receive a binding quotation within seconds, and can then make their bookings right away via the Hapag-Lloyd online business platform.

“Becoming easier to do business with and digitising our services are very important for us. Quick Quotes enables our customers globally to get a fast quotation at any time, which will contribute to a better and more efficient customer experience,” said Rolf Habben Jansen, CEO of Hapag-Lloyd.

Quick Quotes is seamlessly integrated into HapagLloyd’s growing online business platform. That way customers can quickly and conveniently complete large parts of container shipping processes by themselves.

T

his enables shippers around the world to simplify and significantly speed up their quotation process for container shipments.

Besides getting a quote and placing an immediate booking for a shipment, additional services are available such as checking for shipping schedules, managing documents or tracking of shipments.

Quick Quotes is available on the Hapag-Lloyd website.

As of September, Quick Quotes and Mobile Booking will also be accessible via the Hapag-Lloyd app for iOS and Android.

Quick Quotes generates online quotations for container shipments in seconds and provides clients

24 Sea News

ISSUE 2 2018

IRCLASS IMPLEMENTS ELECTRONIC CERTIFICATES FOR ALL ITS CLASSED VESSELS

NEWS DIGITALISATION

Indian Register of Shipping implements electronic certificates for all its classed vessels Indian Register of Shipping (IRClass), a leading international classification society has started issuing electronic certificates for all its classed vessels.

Baibhav Mishra, Associate Editor reports.

I

RClass), a leading international classification society has started issuing electronic certificates for all its classed vessels.

Recognising the importance of digitalisation, these e-Certificates are in accordance with International Maritime Organisation (IMO) guidelines for the use of e-Certificates (FAL.5-Circ.39-Rev2) dated April 2016 and, are available on the IRClass website through a secure platform – giving ship owners, regulators and charterers real-time access to the latest class and statutory certificates from anywhere in the world.

The e-Certificates are incorporated with a digital signature and a unique tracking number for online verification purposes. This allows the user to determine the validity of the certificates – to ensure that they have not been falsified or tampered with. The authenticity, originality and traceability of the e-Certificates are easily verifiable through the IRClass Verification Portal, with access made available for any stakeholder who

ISSUE 2 2018

wishes to confirm the information contained in the e-Certificates.

Commenting on this initiative, Joint Managing Director of IRClass, Mr. Vijay Arora said: “The implementation of IRClass e-Certificates are expected to reduce administrative burden and document handling costs for ship owners, coupled with increasing operational efficiency.

“We have started issuing e-Certificates (provided the flag state has approved its use) to all newbuilding vessels on delivery as well as existing vessels on completion of their upcoming renewal survey.”

He added: “As a classification society focused on driving the maritime industry forward, we are looking towards stepping up on our digitalisation efforts in various other areas in the near future – as technological advancements continue to transform the industry at a rapid pace.”

Sea News 25

NEWS

DAMEN EMBARKS ON DANISH FULL ELECTRIC PUBLIC TRANSPORT PROJECT FOR ARRIVA

ELECTRIFICATION

Damen embarks on Danish full electric public transport project for Arriva Damen Shipyards Group recently signed a contract with leading multinational public transport company Arriva Danmark for five fully-electric ferries, known as the Damen Ferry 2306 E3. Mike Godfrey, Associate Editor reports.

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amen E3 vessels are designed with the philosophy of being environmentally friendly, efficient in operation and economically viable. Arriva will operate the ferries for its client, Danish public transport agency MOVIA, in the country’s capital city Copenhagen.

Both Damen and Arriva share a common vision

26 Sea News

of reducing the environmental footprint of public transportation via utilisation of innovative technology.

Equally, both parties place great importance on the customer experience in terms of safety, reliability and comfort.

For the tender process of this contract, Damen’s in-house engineering team conducted extensive

ISSUE 2 2018

DAMEN EMBARKS ON DANISH FULL ELECTRIC PUBLIC TRANSPORT PROJECT FOR ARRIVA

NEWS ELECTRIFICATION

studies into the best possible solution for the operation in question. A key feature was environmental performance. To this end, Damen considered biodiesel, hybrid and full electric solutions. Unsurprisingly, a zero emissions, fully electric solution offered the best results in terms of sustainability. It also transpired that, over the 12 year period of the contract, this was the most cost-efficient solution.

Another crucial requirement was that the new vessels be able to fit into the existing framework – including use of current timetables and infrastructure, as well as capacity to carry at least 60 passengers. To fulfil this, Damen developed a design with a capacity for 80 passengers, tailored so that the vessels can dock – bow first – at the existing jetties.

At the jetties at each end of the route, Damen will install fast charging points. These will apply solutions already proven in land public transport solutions. Charging, which will take place with each voyage, will take just seven minutes.

On board comfort was also an important factor. The ferries, without diesel engines, offer very low noise and vibrations. The passenger area – low in the water for wind protection – features very large windows, while the roof is also glazed. The wheelhouse has been raised to the highest possible position so as to provide operators with the optimal viewpoint.

Naturally, for vessels that are required to carry up to 80 passengers – both commuters and tourists – 16 hours a day, reliability was of the utmost importance.

Fortunately, Damen has a proven track record in fully electric solutions. To further ensure reliability, Damen has developed a robust, steel-hulled ferry with strong fenders. These features, combined with the electric

ISSUE 2 2018

propulsion, guarantee lowest possible maintenance requirements.

The design benefits from Damen’s in-house R&D and Innovation programme, which has delivered numerous maritime innovations over the years. Recent examples include hybrid and electric road ferries and participation in the production of the world’s first Class approved 3D-printed propeller. Another example is Remote Monitoring – a useful tool on sustainable, efficient operations such as this, to monitor use of fuel and upcoming maintenance requirements amongst other things.

Mr. Torben Hansen, Director Bus of Arriva Danmark, said, “This is third consecutive occasion that Arriva has secured the contract to provide this service to the City of Copenhagen. We are very proud and honored to play our part in assisting the city as it strives to meet its target of zero emissions in public transport in the coming years. This new vessel order is perfectly aligned with our role at the forefront of the switch from diesel to electric power. Damen has proven to be the right partner for this project. Their experience with fully electric vessels has positioned them well to support and advise us in our mission to provide the city of Copenhagen with clean, safe, reliable and cost effective transportation.”

Martin Verstraaten, Damen Sales Manager, said, “Throughout the tender process, the collaboration between all parties has been excellent. Combining Arriva’s operational knowledge with our shipbuilding experience has delivered a design that answers all the needs of this project; a zero emissions, low maintenance solution that offers real value for money.”

Sea News 27

NEWS

DAMEN AND SKOON ENERGY SIGN AGREEMENT FOR ADVANCEMENT OF SUSTAINBLE SHIPPING SOLUTIONS

ENERGY TRANSITION

Damen and Skoon Energy sign agreement for advancement of sustainable shipping solutions Damen Shipyards Group and Skoon Energy have signed a cooperation agreement of understanding for the advancement of energy transition in the shipping industry. Mike Godfrey, Associate Editor reports.

aboard a diesel-electric inland vessel later this year.

As a new company, Skoon will benefit from Damen’s extensive experience in complex, international shipbuilding projects, as well as its global commercial network.

T

he agreement combines Damen’s 90 years of experience with the dynamism of a new start-up, founded in 2017, by Daan Geldermans and Peter Paul van Voorst, two students of the Delft University of Technology.

Damen is renowned for its innovative approach to shipbuilding, and is well known for the improved sustainability of its product portfolio that results from this. Recent examples include numerous hybrid, LNG and fully electric propelled vessels. Skoon focusses on the large-scale electrification of ships’ propulsion via management of a battery sharing network and strategically located charging hubs with a 100% clean energy supply. Skoon Energy’s swappable battery packs – known as Skoonboxes – are planned for trial

28 Sea News

Skoon Energy founder Peter Paul van Voorst says, “With this partnership Damen is demonstrating its commitment to enabling sustainable solutions within the maritime industry. We’re looking forward to working together with Damen to make fully electric shipping the norm within the maritime industry.”

Damen Chief Commercial Officer Arnout Damen said, “We know from long experience that collaboration, sharing knowledge and ideas, is a crucial factor in stimulating innovation and encouraging improved sustainability. Skoon Energy’s idea has quickly attracted the imagination of our industry. Their focus on improving the environmental performance of the shipping industry is one that is entirely aligned with our own ambitions and we’re anticipating an excellent partnership as we work together to make large scale electric ships’ propulsion a reality.”

ISSUE 2 2018

MARLINK’S CRUISING AND SUPERYACHT CUSTOMERS TO USE HIGH-SPEED INTERNET

NEWS

HIGH-SPEED INTERNET CONNECTIVITY

New satellite capacity enables Marlink’s cruising and superyacht customers to use highspeed internet Overlapping Ku-band beams for the Mediterranean and Caribbean and new coverage over the Northwest Passage. Mike Godfrey, Associate Editor reports.

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arlink has added new satellites and beams to its global Sealink VSAT network to provide broader flexible access to reliable, high-speed Internet connectivity, enabling operational, crew and guest communications in the fast-growing adventure cruising and bandwidth-hungry superyacht markets.

Adding new capacity is part of Marlink’s strategy to offer a multi-layered network of high-power overlapping beams, delivering redundancy in congested or remote areas to ensure access to high-quality voice and data services.

ISSUE 2 2018

“As demand for bandwidth increases in all maritime verticals, our combination of satellites, beams and overall orbital spread enables us to maximise the availability, speed, flexibility and agility of the connectivity services we provide, whilst ensuring high throughput even thousands of miles from the equator,” said Tore Morten Olsen, President Maritime, Marlink.

The new coverage in the Northwest Passage, the Mediterranean and Caribbean delivers even more potential for digital transformation in the adventure cruise and superyacht sectors. With even more satellites and beams added, Marlink offers one of the

Sea News 29

NEWS

MARLINK’S CRUISING AND SUPERYACHT CUSTOMERS TO USE HIGH-SPEED INTERNET

HIGH-SPEED INTERNET CONNECTIVITY

largest VSAT networks dedicated to maritime users, offering both beam and frequency redundancy.

quality of service, resulting in more uptime even in the most remote regions,” said Tore Morten Olsen.

A new satellite has been added to the Marlink VSAT network to augment Ku-band coverage in the Northwest Passage, from the east coast of Canada to the western tip of Alaska, helping to open the region further for cruise ships and superyachts looking for adventure off the beaten track.

Marlink has also added new wide beam High Throughput Satellite coverage to overlap existing capacity in more traditional cruise and yachting regions, illuminating the entire Mediterranean Sea. More capacity has also been added for seasonal peak demands, and additional coverage has been added in the most popular Caribbean yachting destinations.

Cruise ships, yachts and commercial vessels crossing the Atlantic are now also supported by extra capacity to stay connected at sea at any time.

“With sea ice receding due to climate change, larger vessels are now able to further explore the Northwest Passage, which is generating significant extra demand for connectivity. Choosing a provider with more sources of high throughput services enabled by redundant and overlapping satellite coverage ensures

30 Sea News

ISSUE 2 2018

The world’s oceans are big enough for a SMART Registry

PALAU INTERNATIONAL SHIP REGISTRY THE NEXT GENERATION FLAG

EUROPE I GREECE I 5 SACHTOURI STR, PIRAEUS - Tel: + 30 210 4293500 USA I TEXAS I THE WOODLANDS I 9595 SIX PINES DRIVE - Tel: + 1 832 631 6061 Abu Dhabi Alexandria Beirut Cape Town City of Port of Spain Constanta Dubai Eindhoven Fuzhou Guangzhou Hong Kong Houston Istanbul Kerala Kherson Lagos Limassol London Miami Moscow Nakhodka Nicosia Odessa Panama City Piraeus Qingdao Sakhalin Shanghai Singapore St. Petersburg Taiwan Tartu Varna Vladivostok

NEWS

ABP TO DEVELOP NEW TECHNOLOGIES WITH ROLLS ROYCE AND SVITZER

TECHNOLOGY DEVELOPMENT

ABP to develop new technologies with Rolls Royce and Svitzer Associated British Ports has announced that it has invited Rolls Royce and Svitzer, part of the Maersk Group, to develop the next generation of technologies which will keep Britain trading. Baibhav Mishra, Associate Editor reports.

Director, Marine & Compliance, Mike McCartain, Phil Buckley, Southampton Harbour Master, Liz English, Development Manager, with representatives from Rolls Royce, Svitzer, Department for Transport and the Maritime and Coastguard Agency

A 32 Sea News

tri-party Memorandum of Understanding (MOU), was instigated by ABP’s Director of Marine & Compliance, Mike McCartain and signed during a ‘kick off’ workshop at ABP’s

Port of Southampton. The meeting was also attended by representatives of the Department for Transport and the Maritime and Coastguard Agency.

The agreement means that ABP will work with

ISSUE 2 2018

ABP TO DEVELOP NEW TECHNOLOGIES WITH ROLLS ROYCE AND SVITZER

NEWS TECHNOLOGY DEVELOPMENT

Rolls Royce and Svitzer, to develop the innovative technologies and systems needed to operate efficiently and sustainably well into the 21st century. The areas the companies will focus on will include intelligent asset management solutions and dynamic positioning systems, amongst a range of potential innovations.

Mike McCartain, ABP’s Director of Marine & Compliance, said: “New technologies emerge all the time which offer us exciting, additional capabilities.

ABP is always looking to make these new technologies work for us and our customers. Where a solution does not yet exist, we will work with companies of the calibre and expertise of Rolls Royce and Svitzer to invent them and bring them into service.

“A sustainable future for ABP means a constant effort to be greener, safer and more efficient, so that we can continue to play a crucial role in Britain’s economy,

ISSUE 2 2018

industrial infrastructure and local communities.”

Kevin Daffey, Rolls-Royce, Director Engineering & Technology and Ship Intelligence, said: “Rolls Royce has a long, successful heritage in UK innovation in engineering and we are proud to be bringing this to bear in working with the UK’s largest ports operator, ABP. We are confident that we can work together with ABP and Svitzer to deliver the technologies that will keep the UK competitive in the future.”

Lise Demant, Global Chief Commercial Officer of Svitzer, said: “As the world’s leading towage operator, we are pleased to share our expertise within maritime services with heavyweights such as ABP and Rolls Royce, in our joint pursuit of safer and more efficient port operations through technological advancements.”

Sea News 33

NEWS

MAERSK LINE GOES LIVE WITH CARGOSPHERE DIGITAL RATE DISTRIBUTION

TECHNOLOGY DEVELOPMENT

Maersk Line goes live with CargoSphere digital rate distribution Maersk Line, the world’s largest container shipping company, is now digitally distributing its rates to shippers, freight forwarder and NVOCC customers using CargoSphere eSUDS (electronic Smart Upload and Diagnostics Solution) and the CargoSphere Rate Mesh that is highly complementary to Maersk’s existing online quoting solutions. Mike Godfrey, Associate Editor reports.

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enefits of 100% digital rate distribution include time and cost savings, improved data accuracy, online access to timely rates for better decision making, faster reconciliation of invoices and faster quoting to customers for freight forwarders and NVOCCs. Liezel du Toit, Senior Director, Senior Product Owner – Price to Contract, Maersk Line, said, “We are very excited that our collaboration with CargoSphere has allowed us to take this important step in making it easier for our customers. Our customers should be spending time on their business, not on updating our rates in their systems!”

Carsten Frank Olsen, Senior Director and Global Head of eCommerce at Maersk Line, said, “We’re pleased to offer 100% digital rate distribution on the CargoSphere platform to improve rate management efficiency

34 Sea News

to the industry. This move is part of the Maersk Line digital transformation and helps us to offer advanced, industry-leading digital solutions that improve the customer experience. Our customers require a faster and simpler way to manage freight rates and CargoSphere is delivering the advanced technology to achieve this.”

Neil Barni, Managing Director of CargoSphere, said, “Digital ocean rate distribution removes many of the manual processes that have acted as a drag on rates management for many years and I am thrilled to see our long-term vision coming to fruition. Having Maersk Line go live on the CargoSphere platform is a big signal of its intent to transform its own key processes and the industry solutions it takes to market. This is a win for productivity and the customer experience.”

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VR TECHNOLOGY ALLOWS VIRTUAL SHIP VISITS

NEWS VIRTUAL REALITY

VR technology allows virtual ship visits Mitsui O.S.K. Lines (MOL) has announced the introduction of the Vessel View VR, a virtual reality system that allows for virtual ship visits, based on technology developed by NURVE. Mike Godfrey, Associate Editor reports.

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long and 32.2m wide, so it would be very difficult for in-person visitors to tour all areas of the ship within a limited time. In addition, the vessel’s structure is difficult to grasp intuitively by looking only at the blueprints and photos. This initiative allows a simple, intuitive grasp of various on-board areas.

essel View VR opens up new opportunities and provides access to information that until now has been limited in conventional ship visits. The virtual ship visit is introduced into the car carrier Beluga Ace, one of MOL’s next-generation FLEXIE series car carriers, delivered in March of this year as first step. The vessel is huge, measuring 199.9m

MOL works continually to enhance the contents of such virtual visits to provide customers with more effective explanations of its vessels’ capabilities and to promote improved training and a higher safety consciousness among employees, as it strives to become the world leader in safe operation.

RESTRICTIONS IN CONVENTIONAL VISITS Capacity of visitors per visit

The number of visitors a vessel can accept

Arrangement for ship visit

An individual application for each visitor must be submitted ahead of time to the chief customs inspector

Required time for ship visit

Limited to a short time during port calls and while in a dockyard, and subject to weather conditions

Timing of ship visit

A round trip to calling port and physically boarding the vessel

Location of ship visit

Mainly at calling ports

Communication during ship visit

Noise from machinery in engine room and so on can make it difficult for visitors to listen to explanations

Safety during ship visit

Necessity to ensure the safety of visitors during ship visits, as well as the safety of the vessels, crewmembers, and loaded cargoes.

Burden of ship side

Onboard visits add more tasks to the workload, in addition to normal operations such as loading/ unloading, preparation for voyage, and ship inspections

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VESSEL VIEW VR

In principle, no limit, assuming visitors have an internet connection and proper log-in privileges

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FEATURE

MARITIME INDUSTRY AHEAD OF OTHER KEY SECTORS FOR IOT ADOPTION

INTERNET OF THINGS

New Inmarsat research places maritime industry on a par or ahead of other key sectors for IoT adoption and usage Original research covering the industrial internet of things that takes in all stages of the supply chain suggests that the maritime industry may be at a more advanced stage of readiness to adopt its analytic, management and operational tools than many have supposed. Drew Brandy, Senior Vice President, Maritime Market Strategy explains.

The early release of the report’s maritime chapter provided a major talking point at Posidonia 2018 in June, offering an early insight into a group of 125 maritime respondents working a full range of vessel types, including container ships, tankers, bulk carriers and offshore vessels. However, the full study offers perhaps the first research-driven assessment of IIoTreadiness that considers the maritime industry in the context of the industries it serves and partners.

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newly published ‘Industrial IoT on land and at sea’ study commissioned by Inmarsat and based on 750 interviews conducted by Vanson Bourne explores the use of, and intentions for the IIoT across the maritime, transport and logistics, energy, mining and agriculture sectors.

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The report’s authors note that the IIoT is set to play a profound role in providing end-to-end transparency across supply chains and improving their efficiency.

“We are reaching a point where all events in a supply chain will be captured as data by nerve-like sensors, before being routed for analysis and actioned,” they say.

Taking account of all respondents, resource efficiency, improving health and safety and the monitoring of environmental change are identified as the top three drivers for IIoT-based solutions.

The report shows 21% of respondents having fully deployed IIoT solutions of one type or another, 25% trialling them and a further 10% saying they will deploy within six months. However, research also shows that

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MARITIME INDUSTRY AHEAD OF OTHER KEY SECTORS FOR IOT ADOPTION

FEATURE INTERNET OF THINGS

adoption levels are inconsistent across the sectors surveyed, with the mining and energy industries showing much lower levels of adoption than transport and maritime to date.

In general, ‘IIoT on land and at sea’ also finds that respondents closer to consumers are likely to have the strongest and most developed strategies for data use. It is therefore understandable that, of the sectors studied, the part of the transport industry involved in mass transit and the distribution of finished products exhibiting exceptional IIoT readiness: 40% of transport respondents feature among the survey’s ‘leaders’ and a further 30% are described as ‘progressives’.

However, the report’s transport sector is highly segregated, with mass (passenger) transit significantly ahead of parts of the freight transport market when it comes to IIoT engagement. Where 64% of the former report full deployment of IIoT-based solutions, with the remainder planning to do so within 12 months, businesses within the freight and container sectors report full IIoT deployment by 19% and 22% of respondents respectively. Again, despite or perhaps because of the rise of online shopping, the report indicates that low margins are hindering IIoT adoption in the ‘last mile’ transport sector, although the report’s authors predict rapid change is coming in this part of the supply chain.

MARITIME IS SPECIAL The ‘Industrial IoT on land and sea’ study considers the maritime industry separately, probably offering the most detailed account ever of the sector’s attitudes towards the IIoT, while also putting digital penetration among ship owners in the context of other markets touched by Inmarsat. By its very nature, maritime’s journey towards digitalisation is ‘special’ because its connectivity options are more limited, with 51% ranking satellite connectivity as ‘number one’ by usage, and 69% of maritime respondents reliant on satellite connectivity to support their IIoT-based solutions.

One aim of the study was therefore to gauge the impact of and prospects for IoT-based solutions in improving business intelligence, vessel performance and crew welfare two years after the launch of Inmarsat’s Ka-band Fleet Xpress service with L-Band FleetBroadband as back-up. Developed to catalyse the maritime data revolution, Inmarsat’s strategy for Fleet Xpress includes encouragement for content-rich applications through its Certified Application Provider (CAP) programme.

In findings that challenge the received wisdom of

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shipping as a backward-looking business when it comes to digitalisation, the study suggests that actions by the sector’s thought leaders mean that the industry as a whole is ahead of many of its customers on IIoT uptake.

However, more stereotypically, shipping also finds room for a sizeable rump of IoT ‘laggards’ whose resistance to change will ensure it that the wider transport industry stays ahead of its maritime component on digitalisation for the foreseeable future.

In some ways, variations in shipping attitudes are inevitable as reflections of the industries with which they engage and the study offers guidance on how shippers behind different ‘trades’ are shaping up when it comes to future IIoT uptake. For example, as a core contributor to the dry bulk sector, agriculture is at the earliest stage of investment in the IIoT, with 80 per cent of those surveyed characterised as ‘starters’ in the IIoT investment cycle. This contrasts with the maritime industry, where around 35% are considered starters in investment terms, against a 53-54% ‘progressives’ constituency. The mining industry yields IIoT starters equivalent to around 42% of all respondents, while identifying 39% as progressives.

These findings put shipping ahead of the curve in terms of IIoT investments, but the positives need to be qualified. For example, where around 8% of the study’s respondents overall could be described as IIoT investment ‘leaders’, none of these came from the maritime group, but a small number of leaders were found in the mining sector. Meanwhile, 10% of ship owners and over 10% of mining respondents are described as IIoT investment ‘laggards’: proportionately, this is twice the size of the overall ‘laggard’ constituency, demonstrating how both sectors provide a haven for intransigence.

Investment perspectives can, of course, change: with 77% of respondents from agriculture and 84% from mining agreeing or strongly agreeing that the IIoT will revolutionise their industries, for example, there appears to be a clear realisation that change is in the wind.

SECTOR PRIORITIES A survey of drivers for IIoT uptake across shipping’s customer base offers a chance to evaluate motivations, but also for the more competitively-minded to identify areas for empathy. Those involved in the bulk shipping sector, for example, may be interested to learn that around 50% of respondents from agriculture identify environmental monitoring (of soil and weather conditions) as a main driver, while 44% pinpoint the

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FEATURE

MARITIME INDUSTRY AHEAD OF OTHER KEY SECTORS FOR IOT ADOPTION

INTERNET OF THINGS

IIoT’s potential to reduce operational costs. If evidence were needed that the agriculture sector recognises but is yet to realise the IIoT’s potential it may be offered by observing that while 64% believe it will help them gain better insight into their supply chains, only 9% have achieved this objective so far. In the mining sector, meanwhile, the priority for IIoT focuses on tracking and smart monitoring of assets while, like its maritime counterpart, this customer base is attracted to the health and safety benefits associated with wearable technologies.

Given that energy respondents span industry roles from exploration through to distribution, it is unsurprising that this sector elicits a range of attitudes when it comes to the IIoT. In exploration, IIoT can help to accelerate and enhance seismic performance data acquisition and analysis to improve production performance. In both exploration and extraction phases, however, health and safety benefits such as wearable technology are cited as key (respectively by 50% and 60% of respondents), while monitoring environmental changes are respectively cited by 53% and 58%. Further downstream, IIoT sensors can help to optimise supply and demand forecasting, as well as pipeline operations.

Collectively, the study identifies two major aspects of in IIoT readiness among the organisations underpinning shipping’s oil and gas cargoes. First, they are further advanced in their commitment and attitudes towards digitalisation than their dry bulk peers, with 50% of energy respondents among the survey’s ‘progressives’.

Secondly, 90% of energy respondents believe that the IIoT will be essential for gaining a competitive advantage.

From the maritime perspective, however, one of the most striking findings in the report is that ship owning respondents expect average expenditure per business on IoT-based solutions to amount to US$2.5 million over the next three years as part of their IT expenditure. In absolute terms, the more mature energy and transport sectors predict higher average spend over the period ($4 million and $3.5 million respectively), while the figure for agriculture is significantly lower ($1 million).

Maritime respondents also say that they intend to invest a larger share of their IT budgets (7.8%) in IoT-based solutions than in any other ‘next generation’ technology. Maritime therefore achieves a middle ranking when it comes the 7-9% range of IT budgets set aside by all sectors for IIoT. However, IT spend may not account for all maritime spending on IIoT, where ship

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connectivity costs cut across the operations, training and safety budgets that often sustain the adoption of new technologies.

Furthermore, analysis also places maritime ahead of agriculture, mining and even energy when it comes to specific attitudes towards IoT-based solutions, with 34% of maritime respondents indicating that they have an IIoT solution under ‘full deployment’. By their own testimony, driving these ‘leaders’ is the need for ships to be more cost efficient, cleaner and safer than ever before, with 56% of maritime respondents already using or trialling smart asset monitoring.

Drilling down into the report, owners show themselves as upholding the maritime industry’s decade-long fixation with costs. While 51% of respondents say that revenue generation does not figure in considerations, 75% say that they have realised, or expect to realise savings using the IoT. Route optimisation is typical and is identified by 57% as in use or on trial.

ENVIRONMENTAL AGENDA Emissions also matter: the environmental agenda is a key driver for IIoT adoption in the land-based and mass transit sectors, with 61% of respondents saying that monitoring techniques such as emissions sensors provided primary motivation for IIoT adoption. In the maritime sector, regulation coming into effect over the short term is providing an extra prompt for adoption. In line with global fuel sulphur limits from 2020, the IMO target to halve ship CO2 by 2050 and EU Monitoring, Reporting and Verification for fuel use, 65% of respondents say they already use IoT-based solutions to monitor consumption. A further 9% say they will do so within a year, with deployment projected as reaching 100% by 2023.

However, maritime respondents also exhibit a marked ambivalence towards IoT-based solutions that is unique to the sector: enthusiasm in some quarters is tempered, in that the industry is also home to the largest group of IoT ‘laggards’ - a description applied to over 25% of respondents. Even the least prepared organisations in the neighbouring mass transit and inland distribution sector said that they would deploy IIoT-based solutions within two years.

In the cost-conscious world of shipping, one explanation may be that while 33% of respondents believe that IoT solutions will bring 10-20% savings within five years, their potential to create new revenues is considered only half as likely, while 14% of respondents believe that – even five years out – there will be no savings at

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MARITIME INDUSTRY AHEAD OF OTHER KEY SECTORS FOR IOT ADOPTION

FEATURE INTERNET OF THINGS

all. Some 54% of peers in the mass transit and inland distribution industries identify improving resource efficiency as a primary driver for IIoT adoption.

But direct operational savings are not the only savings available from deploying IoT-based solutions in the maritime sector, according to respondents. Cutting marine insurance premiums is cited by 70% of respondents as one of the most important drivers for adoption. This finding is especially interesting because the industry self-selects as a ‘laggard’ when it comes to taking steps to remedy its cybersecurity shortcomings, even though this topic is one of the fastest growing areas of business for insurers.

CYBER AWARENESS This is not to say that maritime respondents are not concerned about their cyber vulnerabilities: however, they are more concerned about data storage methods (55%), network security (50%) and potential mishandling of data (44%) than they are about targeted attacks (39%). Even so, only 37% report initiatives to improve security training, with just 25% are working on new IoT security policies.

Maritime’s inward-facing security concerns are therefore distinct: the energy sector with 48% of respondents, transport (52%) and mining (64%) most frequently cite the threat of external cyber-attacks as among their biggest security challenges. The distinction is reflected in Inmarsat’s ‘Fleet Secure’ Unified Threat Management and monitoring service solution, currently in sea trials. As well as detecting external attacks, Fleet Secure will help protect vessel networks from infected USB sticks and crew devices connected to the onboard LAN, combats viruses and blocks access to unsafe websites, and isolates an infected area of the network so that threats can be contained.

The industry’s lack of cyber preparedness raises a deeper malaise over more full-blooded commitment to IoT-based solutions in some quarters: overall, the industry’s lack of decision-making skills is the most frequently cited impediment to uptake (by 56% of

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respondents). Maritime also identifies itself as behind the curve when it comes to planning skills, where 42% of respondents believe their organisations would benefit from additional skills against a figure for all respondents expected to amount to 37%.

Once more, however, these findings should be considered in context: lack of in-house skills was identified across all sectors that acts as a brake to IIoT uptake: around 34% of respondents in the energy sector, 38% in mining and 46% in agriculture cited lack of skills as a barrier to uptake.

A different frustration appears to be thwarting ambitions among those already fully engaged in IoT-based solutions. Here, 51% of the maritime audience cited the time lag between data collection and its availability as an obstacle blocking their optimisation of IoT-based solutions: this was 11% ahead of any other explanation given by maritime respondents. This is despite the finding that only 20% of maritime respondents cite connectivity issues as a barrier to adoption of IoT-based solutions within their organisation – lower than any other sector.

However, to assess the maritime industry’s readiness to adopt IoT-based solutions on owner testimony alone is to overlook a mature quirk of the maritime industry: much of the technical expertise historically held in-house has been outsourced to ship managers and equipment suppliers. Marine equipment can contribute 70% of the value of a new ship, meaning that it has been suppliers – rather than owners – making the running on connectivity, big data analytics and app-triggered remote diagnostics and preventive maintenance.

Therefore, while lack of skills and siloed knowledge are acting as a brake on IIoT uptake in the supply chain, the willingness of 64% of maritime respondents to consider external partners for some or ‘as much as possible’ of their IIoT facilitation may, in the long term, be more a benefit than a block.

Sea News 39

FEATURE

MODERNIZING THE MARITIME SUPPLY CHAIN

INTERNET OF THINGS

Modernizing the Maritime Supply Chain Sea News explores what impact digitalisation is having within global supply chains. Though shipping is a key part of the logistics supply chain; it is just one part of a greater eco-system and it is good to see it within this greater context. Susan Beardslee, Principal Analyst at ABI Research explains.

faster, cheaper, and better options for the maritime shipping industry, including: simplified transaction processes, inexpensive memory and cloud solutions, updated Radio Frequency Identification (RFID) tags to monitor equipment and cargo, and network integration.

The financial challenges of the shipping industry have an impact on the types of investments. The likelihood of a longer-term Return on Investment (ROI) has been a financial challenge, driving the focus by startups to more granular areas, with more immediate results. This, in turn, led to increasing Venture Capital (VC) funding. The top 10 maritime startups have raised more than US$500 million in VC funding over the last 5 years.

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aritime freight is expected to remain unstable due to many external factors from tariffs, trade volumes, and regulation to oil supply, commodity prices, and weather.

Worldwide maritime freight demand is expected to increase into the low single-digits up to the mid-single digits, with variations throughout, with worldwide maritime freight transportation revenues anticipated to grow to over $172B this year.

Digitization has been led by the larger carriers and their Internet of Things (IoT) providers. Overall, IoT capabilities and decreases in costs in other industries are enabling

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Amazon has continued to march deeper into the supply chain, already creating co-opetition, including with FedEx and UPS. The company was awarded an ocean freight forwarder license to operate from the Federal Maritime Commission in the United States in 2016. By early 2017, the company had already aided in shipping at least 150 containers on Chinese cargo vessels. Last year, Amazon began posting rates for services commonly associated with freight companies. They were posted under its Chinese subsidiary, Beijing Century Joyo Courier Service Co. Alibaba, meanwhile, owns Lazada, which is a logistics company with its own network of warehouses and transportation to support deliveries throughout Asia. It has also partnered with Maersk, CMA CGM, and COSCO. A variety of security concerns can be enhanced including further autonomy, piracy prevention, and stabilization of the cargo itself. The maritime industry recognizes that digitizing communication, integration, and shipboard

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MODERNIZING THE MARITIME SUPPLY CHAIN

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INTERNET OF THINGS

equipment networking exposes vessels to cyber risks and attacks. The WSC is assessing improved security without impacting the effectiveness and timeliness of the transport. Additional guidance from BIMCO, the IMO and other industry partners chapter will include ship-toshore interface, insurance considerations, the use of Bring-Your-Own-Device (BYOD), and network security.

players must adapt and work with other suppliers within and outside the industry, from startups to technology leaders in transportation management, connectivity, Artificial Intelligence (AI), and more, including the competition, in order to align on much needed standardization. All must be aware of the encroaching Amazon effect and regional giants like Alibaba.

Global maritime cybersecurity spending is expected to grow by 15% between 2018-2023, with counter measures cyber spending accounting for the fastest growth, at 18% in the same timeframe. IT networking continues to account for the largest cyber security spend across the horizon as cloud-based solutions continue to expand.

Supply chains are the systems that businesses use to get products to consumers. They cover everything from the sourcing of raw materials and manufacturing to the product’s placement in stores. When there is an inefficiency in the supply chain, it can come with significant financial costs. It can also hurt a company’s reputation among consumers.

Challenges include a lack of transparency of real costs due to dated and fragmented systems. Those solutions are simply unable to provide Real-Time Location Systems (RTLSs) or accurate cost models. New digitization solutions, catering to the maritime freight industry offer the game-changing opportunity to leverage Big Data and to significantly reduce paperwork and manual nonvalue-added activities from a range of stakeholders, while maintaining accountability.

The technologies best poised to disrupt the maritime shipping industry over the next 10 years include: Big Data and analytics, blockchain, electrification, assisted and automated operations, drones and robotics, and AR/VR. Other nascent technologies, such as Three-Dimensional (3D) printing and fully unmanned ships, are farther out in terms of adoption. Many of the technologies above have already been tested or implemented, at least in part, by other modes in the supply chain and in multiple other industries. As in any IoT application, there are no “one size fits all” or feasible go-it-alone strategies. Along with consolidation and pressures on profits, century-old

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While there are already systems in place to help ensure the reliability and efficiency of supply chains, modern technology is helping to make these systems more efficient.

With the Internet of Things, processes are connected in a way that allow businesses to learn about their supply chains in ways that were not possible in the past.

Just as on-demand app development has made customers’ lives easier, so too will the integration of the IoT to the supply chain. This knowledge can then be used to improve upon supply chain management and provide new revenue opportunities as processes become more transparent.

IMPROVED QUALITY CONTROL Most asset tracking systems only provide a finite amount of information, generally limited to the last time an item was scanned in at a facility. With modern IoT technology, businesses will be able to use different sensors to track the exact location of an item. It will also allow them to monitor the condition of an asset.

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FEATURE

HOW THE INTERNET OF THINGS IS IMPROVING SUPPLY CHAINS

INTERNET OF THINGS

Increasing the accuracy of location tracking will obviously come with its benefits, but the ability to monitor the condition of an asset will provide a range of opportunities to cut costs and improve the customer experience.

When a business can see that an item has been damaged in transit, it can make plans to have it replaced. The company can also ensure that the damaged goods do not end up in the hands of a customer. This will reduce the expenses that come with processing returns and it will also help businesses avoid the negative effects that come with selling a damaged or defective product.

PREDICTIVE MAINTENANCE Supply chains rely on an assortment of different machines. When these machines have problems, the supply chain can break down, costing the company money. By placing IoT sensors in the machines that keep the supply chain moving, a company can monitor performance and provide more effective predictive maintenance.

In addition to improving the reliability of the supply chain, predictive maintenance will also help businesses save money. With more accurate maintenance schedules that track the need for repairs with greater precision, companies will be able to avoid expensive equipment failures and keep machines in good working condition for longer.

INVENTORY TRACKING AND FORECASTING IoT technology offers companies the ability to track

inventory with better accuracy without the need for a manual count by a human employee. That means staff can focus on different tasks to keep the business running. It also allows managers to get real time status updates concerning inventory levels whenever they need them.

Furthermore, IoT technology can give brands the ability to predict inventory needs better than they could in the past. When machine learning is applied to the information collected from an IoT inventory system, a company can forecast their needs depending on different events and times of year.

GROWING YOUR BRAND The Internet of Things can provide information that is important to modern consumers. There are now more consumers finding concern with things like the sourcing of materials and the history of the products they buy.

When a company has this information, it can be used to show customers that they are responsible and ethical.

When this information is made available, it can help to grow your brand’s popularity among consumers who concern themselves with the history of the products they buy. It also affords the company the opportunity to market their brand as socially conscious.

There are many ways to leverage the Internet of Things to streamline the supply chain process. Integrating this technology into your business today can put you ahead of the competition.

Some insights from Alan Braithwaite, FCILT the Chair of CILT’s Freight and Logistics Policy Group and a Senior Advisor at BearingPoint.

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he concept of ‘digital disruption’ has achieved almost mystical status in terms of the potential that it offers. Recent work by the UK’s Government Office for Science has tried to penetrate the crystal ball and elicit where the potential really lies for freight.

Competitive disruption is the essence of business and it has always been so. Gary Hamel, a top Professor at Harvard, talks about a world of relentless change, ferocious competition and unstoppable innovation.

Joseph Schumpeter popularised the term ‘Creative Destruction’ in 1942. He used it to describe the constant change in markets which he described as mutation – a biological and evolutionary term. His emphasis was on new technologies, new commodities, new sources of supply and competing through quality rather than price.

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MODERNIZING THE MARITIME SUPPLY CHAIN

FEATURE

INTERNET OF THINGS

Digital disruption follows the same pattern with the key differences being that it is faster in its transformative effect and more difficult to predict in terms of the innovations that will go viral and drive major change.

Digital innovation can transform business in two ways.

First it can help to do the ‘same things better’ and second it can completely ‘change the way things are done’. These two strands are not mutually exclusive and the time frames on which they apply may either overlap or be consecutive.

Changing the way things are done is about innovative business models. Johnson, Christensen and Kagerman, writing in the Harvard Business Review, proposed the core idea that good technology needs to go hand-in-hand with a good business model. They stated that this can be represented by a compelling customer proposition, sound economics and the right operational organisation and capabilities. They also asserted the need for company leadership to regularly re-visit the question of whether fundamental change is needed.

Digital innovations have been at their most powerful when they have changed the business model for an industry, eliminating complete steps in supply chains, automating processes, cutting out middlemen and making goods and services more instantly accessible.

The word is disintermediation! For the businesses that get cut out of the chain, they are the victims of creative destruction; for them it will be a question of adapt or die.

Transportation is no stranger to creative destruction.

Sea-freight has undergone an evolution over the centuries from sailing ships to steam power to motor vessels and then by type of vessel from general cargo to container vessel. The massive growth in world trade in manufactured goods over the last 40 years has been attributable to low cost sea container freight.

This innovation disrupted not only traditional cargo vessels but also manufacturers’ markets.

So, in this context, where will the next generation of disruption occur in international supply chains?

Dividing digital disruption into the concepts of ‘connected’, ‘autonomous’ and ‘connected and autonomous’ together with ‘same things better’ and ‘changing the way things are done’ we get a wide range of opportunities. Connecting and automating the transactional, regulatory and clerical environment along the international supply chain between actors has huge potential. This is much more than track and trace; digital platforms that enable many-to-many-to-

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many relationships [B2B2B2X] with the same data and controlling changes and ensuring integrity based on rules will facilitate billing, clearance, certification and optimise movements. The popular digital term for this is blockchain but its sequential connotations are quite limiting; digital platforms can engage suppliers, shippers, carriers, customs, health and many others and deploy artificial intelligence to predict issues and ensure security (inter alia). The transformation from this innovation will come from lower costs in processing and management combined with pro-active routing and risk management. BearingPoint has pioneered such platforms with BT but it can be difficult to grasp the scope and potential.

Connected is one thing but autonomy in shipping is also a real possibility and may be an easier problem to solve than cars and trucks. Just imaging a vessel that operates with no crew (or perhaps just one member).

On established vessel sailings it will be about doing the ‘same things better’ – essentially lower cost. But also autonomous ships will enable the economic model to be re-shaped, challenging the conventional wisdom of economies of scale that has lead to 20,000 TEU vessels and mega-ports. Smaller autonomous vessels feeding micro-ports where the crane and yard investment can be much reduced, suddenly become an interesting proposition. This will be particularly the case when those vessels are connected across the platform to create an uber of the seas. In this scenario, perhaps not as far fetched as one might immediately think, mega ships and ports would be challenged, and established distribution networks would also be upended. In essence, the business model of hub and spoke could be replaced by point-to-point movements with ad hoc transit arrangements.

There are already parallels with this scenario in the low-cost airline industry. It already operates point-topoint, deploys smaller cheaper assets, uses low cost airports where they are available and has decimated prices in the market while increasing customer satisfaction and choice (mostly).

The barriers to such innovations will be fierce resistance from incumbents accompanied by difficulties in getting to initial scale. But change will happen. Expect the platforms that can transform the transactional and control architecture to disrupt first: sooner rather than later.

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FEATURE

CUSTOMER EXPERIENCE IS DRIVING SUPPLY CHAIN INNOVATION

BLOCKCHAIN

Customer experience is driving supply chain innovation, says report from Blujay Solutions and Adelante SCM Research indicates that leaders prioritise customers, integrated technology solutions and supply chain connectivity and visibility.

Doug Surrett, Chief Product Strategist at BluJay Solutions explains. has released its research report, “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation.”

The research was conducted to explore the links between supply chain management innovation, customer experience, technology adoption, and company performance. The findings provide supply chain and logistics decision-makers with benchmarks and insights to develop informed strategies with regard to innovation and improving customer experience.

The research highlights leading factors driving supply chain technology adoption and the next wave of innovation, as well as the barriers to innovation and influence of a customer-centric approach over others.

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luJay Solutions, a leader in supply chain software and services, and Adelante SCM, a research firm and peer-to-peer community for supply chain and logistics professionals,

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“The most important lesson learned from companies that have been disrupted is the danger of becoming too complacent with the status quo,” said Doug Surrett, Chief Product Strategist at BluJay Solutions.

“Our hope is this research will provide insights to help companies determine actions they can take to implement market-leading supply chain solutions.

As we move into the next evolution of supply chain logistics, it’s not just about getting goods from point A to point B at the lowest cost, it’s about innovating with a clear objective to optimize the overall customer

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CUSTOMER EXPERIENCE IS DRIVING SUPPLY CHAIN INNOVATION

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experience. This requires an approach that considers the entire supply chain ecosystem.”

Supply chain executives from industries including manufacturing, retail, and logistic service providers (LSPs) were surveyed, with 140 qualified respondents answering a series of questions about innovation, customer experience, and technology. Participants self-identified their company’s effectiveness and maturity (Above Average Performers v. Average or Below Average Performers, Innovators/Early Adopters v. Laggards/Late Majority). Key findings from the survey include: MARKET LEADERS PLACE CUSTOMER EXPERIENCE AT THE CENTER OF SUPPLY CHAIN DESIGN The report uncovers the close affinity between above-average performers and innovators, who both measure customer experience and rank it as the top factor in supply chain innovation. Conversely, average or below performers and laggards measure customer experience much less and identify cost reduction as the driving factor in supply chain innovation.

The data indicates that logistics service providers (LSPs) are champions of enhanced customer experience as they look for ways to differentiate themselves, focusing less on competing on cost, which often leads to commoditisation. Cost is a top factor among shippers (manufacturer, retailers and distributors) where cost reduction or competitiveness is still a key indicator for success.

INNOVATORS PLACE GREATER EMPHASIS ON LOOKING BEYOND INTERNAL SYSTEMS TO IMPROVING THE ENTIRE SUPPLY CHAIN Innovators/Early Adopters seem to have matured to the point where they are less concerned about their existing systems and are now focused on outwardly focused needs (i.e. flexibility/innovation of supply chain, working with other functional groups). Additionally, they have adopted an integrated solution for managing their supply chain. In contrast, laggards are still focusing on updating their antiquated systems and are trailing on adopting integrated solutions. A majority of laggards are still relying on Excel spreadsheets to manage their supply chain. These findings suggest that in order to drive faster and more efficient supply chain innovation, leaders need to find flexible, future-proof solutions (i.e. cloud infrastructure, open architecture) to continue to innovate, while laggards must leapfrog ahead by replacing their outdated IT systems with modern ones that eliminate the silos that still exist between their systems and processes.

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Transportation, visibility, mobility, and automation will occupy greatest mindshare as companies look to the future In terms of the future, the five supply chain investment priorities that received the greatest percent of overall top rank votes were Transportation, Supply Chain Visibility, Warehousing, BI/Analytics, and Trading Partner Connectivity. The results are not too surprising considering that many of the respondents are involved with transportation, and that many of these investment areas, especially Supply Chain Visibility, will continue to be of key importance as more companies look to optimise their operations, decrease costs, and improve the overall customer experience. Despite all the hype surrounding blockchain, drones, and driverless trucks, those technologies ranked near the bottom of the list in terms of which technologies will deliver the most innovative benefits to the supply chain in the next five years. Instead, companies believe technologies such as Mobile Devices and Apps, Control Tower Visibility, and Warehouse Automation/Robots will lead the way.

In general, the top three technologies are all further along the maturity curve and have more established records of delivering benefits than the technologies lower on the list. The findings suggests that perhaps there’s still a level of skepticism or “wait and see” attitude among supply chain executives when it comes to some emerging technologies.

“COMPETING ON CUSTOMER EXPERIENCE” HIGHLIGHTS THE KEY TO WINNING IN THE NEW AGE OF SUPPLY CHAIN LOGISTICS “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation” takes a look inside the drivers of supply chain innovation. It offers key insights that to help readers identify how their organisation stacks up against competitors in terms of innovation, and perspective to develop informed strategies to approach to supply chain innovation and customer experience.

The report also provides historical views on recognising disruptive technologies, the importance of customer experience as key competitive differentiator, and pitfalls of outdated and rigid supply chain solutions.

“Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation” is available for free download at: www.supplychainresearch.info.

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FEATURE

NO REASON TO BLOCK OUT THE FUTURE

BLOCKCHAIN

No reason to block out the future The recent fuel contamination problems that have affected bunkering in Houston and Singapore have exposed the soft underbelly of fuel supplies in the run up to the global sulphur cap and the increasing need for fuel traceability. Mike Godfrey, Associate Editor reports.

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ith the IMO global sulphur cap kicking off in January 2020, there has never been a better time to trial new technology for enhancing fuel

traceability.

Contaminated fuel can wreak havoc in a marine engine. Reports have cited broken piston rings, bent

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connecting rods, plungers found to be sticking, injection valves severely damaged and even cracked pistons.

The extent of damage purely from contaminated fuel can be a surprise to some ship owners but the onus is on the industry to ensure what is being sold and used is what was promised and from reliable sources.

This is a difficult period as blends and standards are still evolving, but it is also the time to think about the

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NO REASON TO BLOCK OUT THE FUTURE

FEATURE BLOCKCHAIN

long-term future and what needs to be added into the fuel provision mix.

Blockchain technology is now seen as a reliable ‘safe harbour’ for information and an increasing number of stakeholders in the global shipping industry are looking to harness blockchain technologies to improve the traceability of the shipping fuel supply chain. The incidents in Houston and Singapore have sounded a warning bell: compliance with the 2020 cap and the reliability of the new blends of fuel coming onto the market need to be traceable, verified and open to examination. The current danger to shipping will come not only from contaminated fuel but also from a lack of willingness to invest in technology designed to offer a reliable chain of fuel custody.

Bulk fuel buyers and bunkering outlets are only too well aware of the negative impacts on their business should non-compliance and damaged marine engines come back to haunt them. Blockchain technology

ISSUE 2 2018

offers a process that authenticates and traces the supply chain and its accountability at every step. At this stage there are a number of consortia examining blockchain and assessing how to use the technology to help shipping operators trace the source and quality of bunker fuels.

When you come across a quote from someone in the shipping industry saying the introduction of new technology is often a case of it being forced into the mainstream and how it can ignore the complex human and governance elements, you realise that if the shipping world is to move forward, it does need a more receptive audience. Who can blame ship owners freezing when the very thought of extra IT rears its head? But if the recent examples of contaminated fuel and the problems that are caused are anything to go by, then anything technology-based that helps overcome these problems is to be welcomed.

Sea News 47

FEATURE

BLOCKCHAIN TECHNOLOGY: APPLICATIONS AND IMPLICATIONS ON THE SHIPPING INDUSTRY

BLOCKCHAIN

Blockchain Technology: Applications and implications on the shipping industry The blockchain is an undeniably ingenious invention, allowing digital information to be distributed but not copied. Baibhav Mishra, Associate Editor explains.

B

lockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the technology has diversified into an array of industries and

verticals.

The information held on a blockchain exists as a shared

48 Sea News

— and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database is not stored in any single location, which means that the records it keeps are actually public and easily verifiable. No centralised version of this information exists for a hacker to corrupt.

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BLOCKCHAIN TECHNOLOGY: APPLICATIONS AND IMPLICATIONS ON THE SHIPPING INDUSTRY

FEATURE BLOCKCHAIN

BLOCKCHAIN DURABILITY AND ROBUSTNESS Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain cannot: 1. Be controlled by any single entity.

2. Has no single point of failure.

TRANSPARENT AND INCORRUPTIBLE The blockchain network lives in a state of consensus, one that automatically checks in with itself every ten minutes. A kind of self-auditing ecosystem of a digital value, the network reconciles every transaction that happens in ten-minute intervals. Each group of these transactions is referred to as a “block”. Two important properties result from this: Transparency data is embedded within the network as a whole, by definition it is public.

It cannot be corrupted altering any unit of information on the blockchain would mean using a huge amount of computing power to override the entire network.

THE CONCEPT OF DECENTRALISATION By design, the blockchain is a decentralised technology.

Anything that happens on it is a function of the network as a whole. Some important implications stem from this. By creating a new way to verify transactions aspects of traditional commerce could become unnecessary. The blockchain potentially cuts out the middleman for these types of transactions.

BLOCKCHAIN & ENHANCED SECURITY By storing data across its network, the blockchain eliminates the risks that come with data being held centrally.

Its network lacks centralised points of vulnerability that computer hackers can exploit. Today’s internet has security problems that are familiar to everyone.

We all rely on the “username/password” system to protect our identity and assets online. Blockchain security methods use encryption technology.

Store your data on the blockchain and it is incorruptible.

This is true, although protecting your digital assets will also require safeguarding of your private key by printing it out.

INTERNET OF THINGS (IOT) What is the IoT? The network-controlled management of certain types of electronic devices — for instance, the monitoring of air temperature in a storage facility.

Smart contracts make the automation of remote systems management possible. A combination of

ISSUE 2 2018

software, sensors, and the network facilitates an exchange of data between objects and mechanisms.

The result increases system efficiency and improves cost monitoring.

BLOCKCHAIN IN THE SHIPPING INDUSTRY Despite the recent technological revolution, shipping still remains a traditional industry and the processes the parties follow, in many cases, are almost archaic.

Currently, most of the shipping transactions involve a big number of papers, such as sales contracts, charter party agreements, bills of lading, port documents, letters of credit and others related with the vessel and the cargo.

All these documents may need to pass through a long chain of parties since their importance remains high both for various payments to be effected as well as the carriage and delivery of the cargo to take place.

For example, into the bills of lading and the long way they follow: Starting from the shippers at load port, they pass through several banks until they reach the receiver.

This procedure can be so lengthy and time-consuming that it is very common the vessels to arrive at the discharge port before the bills of lading.

Blockchain technology, based on an open-source peer-to-peer software, is totally decentralised and the management of all transactions or the issuing of new currencies takes place collectively by the network.

For the management of all these transactions, the software uses a chain of blocks which is cryptographically secured and which is used as a public ledger that records all the transactions; this is the “blockchain”.

Each of these blocks include a timestamp and a link to the previous block of the chain and the transaction is processed only after several confirmations of the network, so as to ensure that every transaction follows the rules of the network.

After the information is stored in the block, it cannot change or be deleted unless the subsequent blocks are also changed and the majority of the network accepts the change/deletion. Therefore, user’s interference in the blockchain looks impossible and the system becomes completely waterproofed.

MAIN CHALLENGES AND LIMITATIONS Notwithstanding the advantages of such a technology for the shipping industry, there are a few issues which should be addressed before a full blockchain system is established in the dry bulk and tanker shipping.

Sea News 49

FEATURE

BLOCKCHAIN TECHNOLOGY: APPLICATIONS AND IMPLICATIONS ON THE SHIPPING INDUSTRY

BLOCKCHAIN

— SPECIAL CONTRACTUAL TERMS: The contractual terms of the ship chartering and the sale & purchase of commodities are unique and very specific. These terms should be adapted by the blockchain network which should be able to recognize, for example, what the lien is and how it works, the laytime and demurrage and their exceptions, the Notice of Readiness and when the vessel is actually considered arrived at port etc.

— HIGHER FLEXIBILITY: It is very usual in shipping, the parties to come across situations where they can only solve through a commercial approach. This will not be easy to take place when the transactions are taking place through a sealed system which does not allow any interference from the parties. Furthermore, it is very usual the parties involved in a transaction to have their own contractual terms which are usually subject to the negotiation of the parties. Will it be possible in a universal system? So, the blockchain technology must be configured to include special terms and conditions at inception, otherwise the parties’ liability exposure will be even higher than the liability saved by the system’s use.

— GLOBAL ADOPTION: The blockchain is not adapted or it is not yet allowed by all jurisdictions around the world. However, since various governments and

50 Sea News

agencies are involved around the globe, in order for such technology to be used in trading and shipping services, all these parties should be brought into a common platform and a universal adoption should be achieved.

THE WAY AHEAD The shipping paper trail begins when a cargo owner books space on a ship to move goods. Documents need to be filled in and approved before cargo can enter or leave a port. A single shipment can require hundreds pages that need to be physically delivered to dozens of different agencies, banks, customs bureaus and other entities.

Blockchain could turn the whole processes into a paperless paradise by which all the related parties in each transaction (i.e. sellers/buyers of cargo, shipowner, charterer, banks, agents, customs, port authorities etc.) with the use of public and private keys could come in contact with each other, perform physical transactions, exchange and store information in encrypted format and perform their contractual obligations, give and accept instructions and securely exchange payments.

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TECHNOLOGY

ARE BLOCKCHAIN-SOLUTIONS ADVOCATES OVERPROMISING? PROBABLY

BLOCKCHAIN

Are blockchain solutions advocates overpromising?

Probably John Monarch CEO, ShipChain explains

R

ecently, blockchain has surged back into the headlines after a slew of announcements pushed the new technology from the realm of theory into the day-to-day operations of some of the biggest freight companies.

However, alongside the expected excitement and buzz surrounding the news, questions began to emerge, with industry insiders asking – is blockchain overpromising?

The short answer is yes.

In so far as blockchain can be thought of as a singular entity, there is certainly overpromising going on. But if we unpack the concept a bit more, it gets easier to distinguish the technology from the hype. In that case, blockchain is overpromising in the same way that early proponents of automation overpromised. Aren’t we supposed to be living like the Jetsons? Where’s my flying car and my robotic maid?

This sort of upselling is human nature. But, while we’re still waiting on our Tony Stark suits, there’s no disputing the fact that atomisation has transformed the world around us. Likewise, with blockchain, we’re still in the opening chapter. Its story has yet to be written.

For now, we need to cut through the hype, since promises don’t pay the bills. Managers have to make important decisions today, such as what technology to invest in. That means looking past the headlines, and focusing on specific cases where blockchain can add value in logistics, right now!

52 Sea News

ISSUE 2 2018

ARE BLOCKCHAIN-SOLUTIONS ADVOCATES OVERPROMISING? PROBABLY

TECHNOLOGY BLOCKCHAIN

ShipChain was founded because we identified pain points that blockchain is perfectly suited to address.

And while we are confident that our blockchainbased logistics platform will transform supply chain management, we aren’t so naïve as to expect that it’s a fix-all for every problem facing the industry. Logistics is dynamic. Technology is perpetually adapting to market demands, which is why our solution focuses on current pain points in the shipping industry.

To clarify, let’s reduce the hype surrounding blockchain to two specific pain points and the ways in which ShipChain’s technology solves these issues.

THE FIRST PAIN POINT: is the industry-wide lack of comprehensive data on shipments. Today, shipping is marred by data fragmentation, with partial information stored across a wide array of providers, with inconsistent APIs and integration availability.

This pain point is especially pressing in the era of big data. Logistics companies and shippers alike need comprehensive data insight into their supply chain operations in order to automate and cut costs. Blind spots can lead to bad decisions, while comprehensive data empowers huge savings.

THE BLOCKCHAIN FIX: Trustless technology means open data standards – by creating a set of open schemas for describing shipments, vehicles, operators, cargo and document types (and an open document retrieval protocol for reading/writing data with granular permissions), ShipChain is providing a unified storage mechanism that can be populated with comprehensive data from all providers and used as a complete single-source-of-truth for their logistics data.

That translates into important improvements – a unified storage mechanism that permissioned parties can access, and the sort of data they can use to make timely decisions. That means comprehensive and actionable data. With every actor along with a shipment contributing unforgeable data in a completely secure environment, blockchain enables the creation of a goldmine of information at a time when efficiency is more important than ever.

THE PAIN POINT: Opaque pricing . Currently, forwarders and other supply chain companies don’t provide itemised pricing that reflects the costs of their services.

That means there is a lot of price hiking because there is no reliable recorded data about the whereabouts of a shipment once it leaves the warehouse.

a premium. That model worked before e-commerce eroded the barriers between the logistics world and the consumer-facing retail sector. Now, there’s an expectation from shippers and supply chain managers for more detailed insight into their costs, and a justification for them.

Amazon is a great example of this trend, given their gargantuan logistics spend. With over $21 billion in shipping costs in 2017, companies like Amazon have turned cost-cutting into a fine art, and they’ve done so by figuring out what every function of the supply chain costs.

As of yet, tools of this nature don’t exist for smaller companies, and plenty of larger ones as well.

Blockchain is about to change that.

THE BLOCKCHAIN FIX: When there is full transparency, arbitrary pricing is much harder to pull off as every step of the supply chain process is documented and recorded. When shippers use ShipChain’s platform, there’s no room for questionable warehousing fees or other dubious surcharges, not when everyone is looking at the same data. It’s time to stop paying for price hiking.

At this point, you might be wondering whether or not full transparency is more a product of API integration?

The short answer is, yes, but it’s about making the data irrefutable, thanks to blockchain’s ability to verify each transaction and force accountability. It’s a one-two punch that allows transactions to be recorded in real-time and concurrently verified across the entire network. In other words, each step of the shipment is documented and verified. That’s blockchain’s strength.

Blockchain’s value proposition is the following – enhanced supply chain visibility, accountability, and ultimately savings. In light of the losses associated with shipping inefficiencies and errors, technology capable of eliminating these pain points represents one of the most exciting developments in decades and warrants further attention. We have only started to explore the possibilities of blockchain in logistics, yet the enthusiasm that this incipient technology has kindled speaks to a profound demand for real change in the industry. And as with every new technology, there’s the tendency to get ahead of ourselves, which is why at ShipChain, we’re focusing on the most immediate and provable applications.

For decades, the freight forwarding business has argued that relationships and expertise command

ISSUE 2 2018

Sea News 53

TECHNOLOGY

THE RISE OF BLOCKCHAIN: UNDERSTANDING PUBLIC & PRIVATE PLATFORMS

BLOCKCHAIN

The rise of blockchain: Understanding public & private platforms Stefan Kukman, Founder and CEO of CargoX explains

G

lobal trade and shippers are prepping for a trade war, but another war is brewing.

The rise of blockchain left shippers and incumbent logistics service providers scrambling to develop in-house, private platforms.

Others have sought to partner with technology companies and test public platforms that can easily integrate and offer stark benefits.

Blockchain is expected to digitalize the shipping industry and eliminate the problems and costs

54 Sea News

associated with maintaining millions of documents.

Private blockchains, such as those created by Maersk and IBM, may inhibit adoption of blockchain and complicate use on a global scale. Since the goal of blockchain is decentralisation and data sharing, it is near-impossible to reach decentralisation with multiple companies developing in-house programs.

According to Matt Levine of Bloomberg, the idea of companies’ data living within a private-maintained IBM

ISSUE 2 2018

THE RISE OF BLOCKCHAIN: UNDERSTANDING PUBLIC & PRIVATE PLATFORMS

TECHNOLOGY BLOCKCHAIN

or Maersk system still impedes the documentation needs. Dozens of private platforms mean system-tosystem communication may be difficult. This is where public blockchain help.

Public blockchain acts as an open-standard for enabling communication between platforms. Since private systems may not communicate with each other, a secondary platform implementation could smooth out the differences.

APL Ltd., Anheuser-Busch InBev NV, and Accenture Plc have tested a public blockchain platform for compliance and document-sharing, but even such partnerships retain their private, proprietary nature.

This implies document-sharing will be subject to a centralised data authority.

Blockchains add backbone to transactions, democratising information sharing and permission less settings of public chains, states Joe Liebkind of Investopedia, and marry the benefits of blockchain with the need for transparency and cross-shipper document sharing.

Private systems have an overarching level of data management, and public platforms allow for a continuous flow of information from anyone around the globe.

Decentralisation of data and information sharing sow investment, contributing to better collaboration, and in this case, document sharing.

Instead of focusing on in-house benefits, shippers must consider the end-game. If everyone uses a different system, they are left with the same incompatibility standards of existing ERP and paper-based systems, said Levine.

For example, CargoX has digitised the Bill of Lading with the inception of Smart B/L™. It uses an open infrastructure to integrate with existing systems, including private blockchains. This capability was echoed when CargoX joined the Blockchain in Trucking Alliance (BiTA). Encouraging adoption of a global, public blockchain platform is key to reaching real savings.

Managing Director of BiTA in Asia Soeren Duvier referenced this need recently: “CargoX has successfully raised significant capital to support the development of solid ideas into business cases for shipping industry documentation. This has eluded the industry for decades […]”

ISSUE 2 2018

Since blockchain’s value exists within the integration of existing systems, public blockchain must become the standard “blockchain broker.”

Open infrastructure creates the ideal conditions for blockchain adoption. As noted by Levine, blockchain will not work if everyone builds their own, private system.

If Shipper A’s information is shared with multiple companies, using proprietary, private blockchains, it would be impossible to maintain a digital trail of information between limited-access systems.

Equipping all-size shippers and carriers with the tools, read “open-source software,” to adopt blockchain is a prerequisite to industry-wide use and cost savings.

Considering risk reductions through Smart B/L™, it is easy to see why public systems may hold the key to success. The system removes risk for the holder of the Bill of Lading, ensuring the right party has liability and ownership. It encourages adoption, even among companies developing or already using private blockchain solutions as well.

Consider this. Experts at the Organisation for Economic Co-operation and Development (OECD) estimate the value of fake, counterfeit products on a global scale at nearly one-half trillion dollars or 2.5% of all trade.

Blockchain’s histrionic data gives all shipping parties the opportunity to validate products and identify illicit sellers that tarnish brand value. Private chains contain data in this vacuum, but it is the ability to look beyond a single company or partnership that eliminates fraud in its entirety.

SUMMARY Shippers want blockchain in their operation, but those that develop their own private platforms will inhibit transparency and scalability gains. Incumbent logistics service providers lose sight of the global picture when solely focused on developing in-house platforms.

Public blockchains can serve as an arbitrator for companies seeking to develop in-house solutions and leverage the global benefits of blockchain.

I foresee a future built on connected blockchain platforms. To get there, a public blockchain platform will help shippers solve the problems created with multiple, in-house solutions. Before thinking about the woes of a trade war, shippers need to revisit the private-versus-blockchain conversation and know that it’s public chains that will create the necessary global network possible.

Sea News 55

FEATURE

TRANSFORMING THE GLOBAL SHIPPING INDUSTRY WITH ARTIFICIAL INTELLIGENCE

ARTIFICIAL INTELLIGENCE

Transforming the global shipping industry with artificial intelligence Artificial intelligence (AI) is helping the shipping industry to become increasingly dynamic. Baibhav Mishra, Associate Editor explains.

T

echnology that was developed for autonomous cars and drones is now making headway in shipping, supported by a number of leading maritime nations and creating opportunities throughout the industry.

The world is changing. Technology is a huge part of our lives, and with each and every day that passes, we find ourselves immersed deeper in new technologies and

56 Sea News

innovative processes and the logistics industry knows this better than most.

The hot topic in the industry currently is Artificial Intelligence and whether or not it can have a positive effect on the industry in the future. Here we’re exploring just what artificial intelligence could do for freight forwarding and logistics.

ISSUE 2 2018

TRANSFORMING THE GLOBAL SHIPPING INDUSTRY WITH ARTIFICIAL INTELLIGENCE

FEATURE ARTIFICIAL INTELLIGENCE

PREVENTATIVE MAINTENANCE The failure of mechanics and technology are some of the biggest causes for delayed shipments, and is one of the biggest and most expensive issues that shipping companies can face. Artificial Intelligence could provide a much needed solution that will not only save companies and clients’ money, but valuable time too. IoT sensors could help managers assess and evaluate the condition of their trucks and other mechanical workings. With advanced machine learning algorithms, they could find out that a vehicle is in need of repair long before the issue begins to show itself.

This technology will prevent breakdowns, increase safety and allow proactive as opposed to reactive repairs and improvements.

BETTER DISTRIBUTION MANAGEMENT With large fleets of trucks or other forms of transport, freight and logistics companies may find it difficult to manage and keep track of each and every one without fault. Countless variables can have an effect on the fleet, from weather conditions to road closures, but machine learning algorithms could very well provide much easier management to ensure that deliveries are still completed with minimal fuss regardless.

A collection of algorithms currently in production and testing could very well improve the process around choosing alternative ports or routes. Accurate times

of arrival, the likelihood of cancelled bookings and much more could be predicted, giving customers and freighting companies alike a much better insight into how the journey will go and when the delivery will arrive at its destination.

ENSURING COMPLIANCE WITH ENVIRONMENTAL REGULATIONS New environmental regulations have been rolled out over the past decade. IMO 2020 is one of the most impactful environmental regulations to hit the industry.

This new policy was announced last December and some of the details are still being worked out. What is the significance of this law? The UN International Maritime Organisation has kept sulfur content in fuel oil for marine vessels at 0.5%, which will begin in 2020.

PREPARING FOR THE FUTURE The future is coming and coming fast and companies across the globe need to adjust quickly. While artificial intelligence may not be commercially available on a huge scale for another few years or so, machine learning is already being tested and used by companies across the world, and others are fighting to keep up. With cutting edge technology being rolled out and plenty more in production, it may only be a matter of time before the logistics industry becomes artificially intelligent and whether or not it’ll improve the industry has yet to be seen.

Greg Atkinson, Director & Chief Technology Officer, Eco Marine Power Co. Ltd. Fukuoka, Japan), shares his views

M

aritime and shipping sectors can benefit from AI and robotics in a significant manner Although shipping is a unique sector in many ways, the pressures on profit margins & ROI are not that distinct. Therefore the barriers of ROI should not act as a barrier in terms of the adoption of AI and robotic related technologies.

For example many shore focused tasks could benefit from the use of these technologies especially those related to ship management, spare parts handling and remote system monitoring.

In the current sphere, there are a lot of companies trying to enter the artificial intelligence sector. To avoid working in silos, these shipping companies need to welcome ideas, concepts and technologies from outside the shipping sector. It would be also beneficial if common technical standards and interfaces were adopted. In that area we need to see some streamlining

ISSUE 2 2018

Sea News 57

FEATURE

TRANSFORMING THE GLOBAL SHIPPING INDUSTRY WITH ARTIFICIAL INTELLIGENCE

ARTIFICIAL INTELLIGENCE

of the class-approval process for new equipment.

IMPACT OF AI AND ROBOTICS ON SHIPPING INDUSTRY In terms of short-term impact, we will see an increasing number of development projects and pilot studies emerge related to AI/robotics. Eco Marine Power, for example, recently announced a strategy to incorporate Artificial Intelligence (AI) into various ongoing ship related technology projects including the further development of the patented Aquarius MRE (Marine Renewable Energy) and EnergySail.

Over the medium term we will see products and systems that incorporate these technologies move into shipping just as automation and IT system have since the 1990’s.

HOW ROBOTICS AND AI WILL REVAMP JOB OPPORTUNITIES IN SHIPPING SECTOR AI/Robotics could potentially reduce the workload on the crews of ship and improve safety whilst at the same time reduce costs. Lessons can be learnt from other sectors especially land transportation and also in the mining sector where fleets of large fully automated trucks operate at iron ore mines. New jobs will be created in related fields and it would be helpful if this opened up the possibility for those serving on

58 Sea News

a ship to move to these roles ashore as part of their career in shipping.

IMPEDIMENTS FOR SHIPPING ADOPTING AI/ROBOTICS 1. Resistance due to the fairly conservative nature of the sector.

2. Inability to attract human resources to the sector due to competition with other sectors for people with skills related to AI/robotics/automation.

3. Lack of long term focus arising from the ownership structure of many ships. Is there an incentive for example to invest in these technologies if the ship will be sold after 5 to 10 years?

The sector is gradually moving in the right direction.

However, many shipping companies still do not have a CTO (Chief Technology Officer) role and are not that active in the development of new technologies. Many large shipping companies for example seem ideally placed to be technology innovators and leaders and could leverage this role to generate revenue outside the shipping sector.

ISSUE 2 2018

Sea News Issue 1 2018

Green Issue

Cover Story Global Warming and the Maritime Industry

Also in this issue • CO2 Emissions • Green Initiatives • Sustainability at APL • The Sulphur Setback • Wartsila - Making Waves with Green Shipping

FREE SUBSCRIPTION SUBSCRIBE NOW • Digital magazine • Comprehensive online directory • Weekly eNewsletter

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FEATURE

ARGO: THE SHIPPING SUPERCOMPUTER

ARTIFICIAL INTELLIGENCE

The thoughts and views of Captain VS Parani Let’s call our shipping supercomputer the Argo- like the fast ship of Jason in the ancient greek epic The Odyssey. Captain VS Parani, FNI, FICS, CMarTech-IMarEST explains.

H

e would help us quickly answer questions which we already face in our daily lives: What would be best price to buy this ship?

Should I charter it, or put it on the spot market? What would be the projected cash-flows?

Should I go for scrubbers or low-sulphur fuel? Which technology could help me reduce my fuel bills?

How can I best position the ship six months later for the special survey? How can I best maintain an optimum stock of consumables and spares on board?

How will I know if the young third mate is capable to

60 Sea News

keep independent watch at night? What happens when a crew member trips and falls down the ladder, fracturing his shoulder?

What do I do if pirates will attempt to board the ship and steal cargo while passing through that narrow strait? What is the best course and speed alteration when faced with a multi-ship situation, while also avoiding the fishing nets? What do I do if the ship encounters unexpected ‘monster’ waves in the Bay of Biscay? Or, I see a boatload of immigrants on a sinking boat in the Mediterranean?

ISSUE 2 2018

ARGO: THE SHIPPING SUPERCOMPUTER

FEATURE ARTIFICIAL INTELLIGENCE

What do I do when the fuel pipe springs a leak? Or jelly fish have choked my sea-chest suction in port? What do I do next when my engines are underperforming?

How will I know that the grain being loaded is not mouldy? Or the lashing of the boiler on the flat-rack is sufficient for the voyage? How do I know that the benzene cargo is being sampled correctly?

Argo may not ready yet to answer all these questions but that day is not far away. As you’re reading this article, Stena Line is trialling the use of AI to suggest optimal passage plan based on currents, weather, depth of water, as well as the inputs of captains. The Totem-Plus Decision Support Tool analyses the data of all targets and automatically advise the Officer of Watch on the course to avoid collisions. By the way, Stena Line and many other companies use AI for several tasks in administration, finance, customer experience and customer care.

AI is progressively helping us make more informed decisions and even carry out some routine tasks.

HUMAN VS ARGO Humans use their own experience, knowledge and interaction with others to reach conclusions. Still, we’ve all made quite a few wrong decisions at some point or the other. Meanwhile, research in domains such as medical diagnostics has been shown that AI can get over 90% of their results right, even bettering some experienced surgeons.

I guess then, a pertinent question would be if we could lose our jobs when AI takes over many tasks?

YES AND NO. No, because the ideal environment would be for AI to assist humans in better decision making, like a ‘mate’ if you will. I believe AI will help the spread of knowledge, help optimize resources, and improve the quality of life around the planet- at sea or on shore.

Yes, as a study by McKinsey predicts that around 30% of current jobs will be taken over by AI and automation, as they have already replaced labour in manufacturing tasks. We’ll have to reskill ourselves in performing tasks supporting the AI environment. More importantly, help from AI will free us to push the civilization forward in new frontiers.

A GROWING ARGO Argo’s intelligence grows just like a human from child to late adult and keeps getting better. Artificial intelligence (AI) is about intelligent machines that work and react like humans. The key phrase is ‘like humans’. So, Argo’s development involves building algorithms based on

ISSUE 2 2018

success stories and learning from actions that were not so successful in the past. AI could harness the power of the collective industry, or even multi-disciplinary knowledge beyond boundaries.

Argo was the most successfully navigated ship as per the epic Odyssey. It could also be a very successful tool to help us navigate through the daily challenges in our maritime domain.

REFERENCES: • William Diprose, Nicholas Buist, Artificial Intelligence in medicine: humans need not apply?

•

McKinsey & Company, Jobs Lost, Jobs Gained: Workforce Transitions in a Time of Automation

(This article was contributed exclusively for Sea News by Captain VS Parani, FNI, FICS, CMarTech-IMarEST is the author of Golden Stripes- Leadership on the High Seas, the world’s first book on leadership for mariners, by a merchant-mariner. Whittles Publishing, ISBN: 978-184995314-6. He can be reached at parani.org.)

Sea News 61

FEATURE

3D PRINTING: REVOLUTIONISING THE SHIPPING INDUSTRY AS WE KNOW IT

3D TECHNOLOGY

3D Printing: Revolutionising the shipping industry as we know it Additive manufacturing techniques such as the 3D-printing have spotted an industry which can evolve significantly with this technology: The maritime sector. Baibhav Mishra, Associate Editor explains.

J

ust as it has been seen in shipping and architectural projects that have incorporated 3D printing, this industry is rapidly growing its use of 3D printing and adapting it for a variety of needs.

The business of the industry is to export and import goods and services using the waterways as a means for transport; when shipping vessels are travelling across the oceans and something breaks, the ability to immediately repair or manufacture spare items on site has a certain appeal. This is where the 3D printing can play a crucial role.

Today, modern cargo ships are required to order and stock large numbers of spare parts and supplies to

62 Sea News

make sure that they are not caught short when needs arise out at sea. 3D printing can change the way this process is managed. 3D printing in the maritime industry has found numerous opportunities where the technology could potentially be used to manage the shipping sector effectively.

3D PRINTED SPARE PARTS Whether it is a cargo ship, a cruise liner or a sail boat, they all have one thing in common and that is after long periods of exposure to the wind, weather and regular use vessels are bound to replace their parts.

Because of the cost of storage for parts or even the difficulties one may have finding the parts needed, technology companies have decided to put 3D

ISSUE 2 2018

3D PRINTING: REVOLUTIONISING THE SHIPPING INDUSTRY AS WE KNOW IT

FEATURE 3D TECHNOLOGY

CURRENT SCENARIO There are few people in the maritime industry who are skilled in using 3D printers. However, there is time to learn, as this technology still needs to reach its full potential in the shipping industry. printing to test to see how it can be incorporated on board seafaring vessels.

3D PRINTED CHAIN MAIL FOR SHIPS Although chain mail is considered to be a more medieval instrument of protection, this older tool is being put back into use in a new way. Originally created to be used in outerspace and for the protection of rockets, we are now finding that it can be used in more nautical ways as well.

Created using 3D printing technologies, the chain mail has two sides: One, which is able to reflect light and heat and the other, which can absorb heat and serve as insulation. This high-strength metal could be used in a number of space explorations or even here on earth, by protecting ships and allowing them to handle the different conditions they may find on the water.

3D PRINTED CURRENT TURBINES In the world of renewable energy, tidal current energy is one of the more competitive areas of the energy industry. This is because it is easier to harness and even gives a higher density in comparison to other renewable energy resources, such as wind. In order to harness this energy, the researchers turned to 3D printing to create the tools needed to do just this.

The use of 3D printers for fast prototyping small parts is possible. Furthermore, printers are often able to produce specialised products for the same cost as mass-produced units. Nevertheless, producing larger complex elements is proving to be challenging, due to the fact the production process often requires more insight and experience into material behaviour than 3D printing can currently offer.

FUTURE OF 3D PRINTING IN SHIPPING INDUSTRY In the current economy that shipping is in, is the industry ready for the future? What could it do to survive in this tough financial situation and stay competitive in a world of developing technology?

Does 3D technology offer a viable, cost effective solution for efficient design, repair and replacement commitments? The future ROI which investors can expect remains to be seen, and would need to be evaluated in light of their reasons for embracing this technology; namely, whether they are looking for short term gains or have a long-term mindset for development.

Using their 3D printer, researchers have created two turbines with a diameter of 150 x 100 mm that consist of inner and outer blades. By including a foldable feature for the turbines, the researchers were able to lower their transportation costs. Although this is still in the prototype stage, the researchers on this project were able to demonstrate not only the mechanical functionality of the turbines, but also how 3D printing can create strong products that can help lower costs and save the world.

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FEATURE

AUTOMATION, THE FUTURE OF SUSTAINABLE SHIPPING

AUTOMATION

Automation, the future of sustainable shipping The automated facilities aiding the shipping industry are important proving grounds for technologies that have firmly taken root in European and Asian seaports. Baibhav Mishra, Associate Editor explains.

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owever, these facilities remain a relative rarity in a number of major ports and shipping hubs across other parts of the globe.

We already see examples of automated technology throughout society – from manufacturing assembly lines to Amazon Alexa adding items to our shopping lists.

But new advances in autonomous port technology and commercial ship design have the potential to impact supply chains, operating costs and employee safety around the world.

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AUTOMATED PORT SYSTEMS Robotic technology is used to automate certain port business processes, such as loading and unloading ships, inspecting and stacking containers and operating gates, reducing or eliminating the need for human intervention.

In part the introduction of autonomous tech is likely to be incremental, as new functions are developed and equipment is replaced. The container cranes at Maasvlakte 2 in the Port of Rotterdam are unmanned and practically fully automated – almost every part of the process of unloading containers is handled by software.

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AUTOMATION, THE FUTURE OF SUSTAINABLE SHIPPING

FEATURE AUTOMATION

Picture: by Kongsberg Automating the flow of goods through ports will speed up the process – and in turn the entire shipping supply chain. There will also be a cost benefit, as more goods can be processed.

Computerisation should reduce or remove human error, but sceptics suggest it might make way for other problems – such as digital errors which could cause physical harm. Increasing reliance on tech could also open ports up to cyber criminals, hacking for data, ransom or control of ports.

There may also be less need for staff, although a substantial amount of employees will need to be retrained to maintain new equipment and processes.

Automating seaports is also wildly expensive. The process doesn’t consist of any single thing, but a continuum of digital technologies, software systems, and robotic hardware. Deploying automation to any given port terminal can cost more than $2 million per acre.

AUTONOMOUS SHIPS Autonomous vessels are entirely unmanned, or launch with a small crew before becoming self-piloting.

Computer software takes care of navigation, while onboard systems monitor and manage systems.

Plenty of companies are developing models, but the first ships are expected to set sail very soon. 2018 will see the launch of the Yara Birkeland, a crewless 100-150 container capacity ship, which will initially deliver fertiliser along a 37-mile route in Southern Norway.

Japan’s largest shipping container company NYK Line is planning to test a remote control vessel across the Pacific Ocean in 2019, while Rolls Royce has presented a vision of land-based control centres from which

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it would remotely monitor and control a fleet of unmanned cargo ships.

Automating on-board operations saves time and money, while reducing off-shore crew will naturally result in fewer injuries and accidents.

Crew would still be able to monitor systems and control ships from shore using communications technology, while Artificial Intelligence (AI) also allows computer systems to learn as they go.

What happens if there’s a problem? On-board incidents, such as hull damage or a cargo fire, would either be managed by remote control units operated from shore, or crews could travel out to meet the vessel.

Loaded with technology, they are expensive to build – the Yara Birkeland will cost approximately $25 million, or three times as much as a conventional ship of a similar size.

Increased costs will undoubtedly make autonomous vessels more expensive to insure, especially until their effectiveness, emergency procedures and cargo safety are proven. Regulatory and legal developments will also be necessary to make unmanned ships a reality.

There are common components at every seaport where automation can make the work more efficient.

Every seaport needs cranes to load and unload cargo, for instance, as well as a means of moving containers around the storage yard in an organized fashion so that specific boxes can be located at the specific time they are needed. These kinds of coordinating, organizing, and choreographing tasks are more efficiently handled by machines than by humans.

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FEATURE

PIRATES MOVE ON AS THE NEW KIDS APPEAR ON THE SCREEN

CYBER SECURITY

Pirates move on as the new kids appear on the screen Cyber-security and cyber-crime is the here and now: it hasn’t gone away because it’s only really starting to come into its own. Mike Godfrey, Associate Editor explains.

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eading recent shipping media it seems as though piracy might be slowing down – in some areas – and yet the reality is that like most other crimes, the methods and the targets shift as the returns diminish or the risks become greater than the rewards. Why be out on the ocean waves trying to pull a yacht or tanker over when you can be sitting behind a computer and tilting an oil platform a few degrees more than is comfortable?

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Cyber-crime is the new kid on the block, only he’s been here for longer than you think.

A recent report suggested that a total of 40 incidents of piracy and armed robbery against ships were reported throughout Asia during January-June 2018 comprising 29 actual incidents and 11 attempts. This compared to 47 incidents in the same period a year before with 40 actual incidents and seven attempted ones. According to ReCAAP Information

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PIRATES MOVE ON AS THE NEW KIDS APPEAR ON THE SCREEN

FEATURE CYBER SECURITY

Sharing Centre (ISC) this was the lowest number of incidents reported in 10-years covering the months of January-June from 2009 to 2018.

Earlier this year Oceans Beyond Piracy said pirate attacks remain a serious threat off the Horn of Africa, the coast of Latin America and in the Gulf of Guinea with pirate attacks off the coast of East Africa doubling since the year before. It’s not going away fast enough for fleet owners but the root causes of piracy are as myriad as the solutions. The bottom line is that local economies, lack of work and simple greed are in the mixture: these are governmental problems to be sorted and out of the reach of the world ship owners worried about piracy and seaborne aggression. The same cannot be said of cyber-crime which by anyone’s standards remains a crime largely associated with old fashioned theft.

The cyber-crime world is unlike anything most seafarers have come to recognise as piracy or criminal activity. The pirates inhabiting this world are hidden

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criminals looking to remotely control vessels, maybe directing them to specified port they use or simply out to cause a catastrophic navigational incident. This is the area in which seafarers need better and more comprehensive training. Many experts say that such attacks can be handled by technology but that fails to address the needs of seafarers who will still be sailing even on ‘autonomous’ vessels in the near future.

Telling them what they can and cannot do in this new era is vital for the shipping industry to remain vigilant and effective in combating these incidents.

Cyber-crime will be the bane of the shipping world in varying forms and any attack on a vessel risks the safety and security of living seafarers. There is no complacency in the shipping industry on these matters as far as I am concerned but the question remains – are we doing enough to educate those at sea and on land to the increasing dangers of electronic crime?

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FEATURE

DRONE TECHNOLOGY: A GAME CHANGER FOR SHIPPING INDUSTRY

DRONES

Drone technology: A game changer for the shipping industry Technologies that could stimulate the maritime industry can be inspired from an array of domains. Baibhav Mishra, Associate Editor explains.

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ne of the game-changers in the foreseeable future is going to be use of ‘Drones’.

Classification societies are developing methods of using flying autonomous craft, or drones, to assist surveyors on ships.

Drone technology already exists and commercial units are ready for use, but they need to be hardened for maritime applications. Drones can provide information to surveyors from difficult-to-reach areas on ships and offshore structures. Commercial drone-based surveys will be adopted in 2018.

Another application for drones is testing ship emissions. There are commercial units available

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and being tested for these applications. Drones can also be used for delivering parcels to ships close to coastlines and navigating in ice conditions to provide more information to masters. In 2018 we can expect more development in each of these applications and ships being equipped with their own drones.

UAS advancements are increasingly impacting our everyday lives, from agriculture and filmmaking to security and communications down to the products we have delivered. Its advances present major changes for the future of the maritime industry. As disruptive as the smartphone has been to the world, the use of drones will revolutionise the landscape of ship operations for years to come.

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DRONE TECHNOLOGY: A GAME CHANGER FOR SHIPPING INDUSTRY

FEATURE DRONES

whales, icebergs and pirates. Since the advancements of drones have allowed imagery from over 30km away, dealing with the task of hazard avoidance has become far easier for commercial shipping companies.

REDUCING COSTS Drones can be typically operated by one person without any extensive safety equipment, meaning the costs associated can be significantly reduced. UAS are so quick to deploy in comparison to traditional methods, reducing downtime.

Drones are quickly becoming a regular tool in the maritime industry, although developed for government and military operations, over the next half a decade, growth in the commercial and civilian drone industry is expected to surpass defence industry, with an estimated value of USD 127 billion.

As the development of UAS technology gathers momentum, we’re going to see UAS used more and more in maritime applications than ever before.

Drones can safely go where humans can’t. Improving safety, reducing costs, speeding up processes and making access challenges a breeze, are just a handful of the benefits of using drones in the maritime industry.

SHIP SAFETY & MAINTENANCE Replacing the need for human inspections, routine maintenance can be monitored remotely in real-time by surveyors, providing instant feedback to the vessel or offshore Superintendent. This, in turn, reduces costs, increases efficiency and significantly reduces the risk to human life during essential maintenance.

Tank inspections are a common task onboard vessels and are always a risk to the participating crew members.

Dangerous gases are the biggest killer at sea: often, a crew member will enter an enclosed space – and it may contain a noxious gas. Unfortunately, often they will become unconscious and suffocate. However, this can be completely avoided by the use of a drone.

Easy and quick analysis will determine the safety of the tank for entry – saving lives with just a matter of minutes of drone flight. Equally, video feedback can be used to identify if human inspection is even required, completely removing any threat to human lives.

The use of drones, rather than launch boats could help to reduce costs by up to 90% for vessel operations and ship managers. Research has shown that on average, the cost of a launch boat is $1,500 per hire, however, it can be as much as $4,000 depending on port locations, and it’s been estimated to save the entire industry upwards of $675 million.

EASING ACCESS Drones can be flown into high up or hazardous areas to check the structural integrity of a vessel or of loaded cargo. Whereas previously this high-risk job was down to a crew member, now a drone can be flown to the inspection point, and with a high definition video feedback to the control centre, not only does this mitigate any risk, it is also far quicker.

Much has been made of re-supplying ships whilst at sea, especially since the evolution of drones, this task has become a far simpler concept. Initial tests showed multiple hurdles to overcome to make this option of delivery viable.

PREPARING FOR THE ROAD AHEAD However, there are still far more speed bumps to overcome, from improving the distance a drone can travel to its ability to handle heavy and large loads and until these progressions, UAS technology is currently primarily focused on inspection and surveillance.

As the development of drone technology gathers pace for both military and recreational purposes, unmanned aerial vehicles are also becoming more prevalent in the maritime industry. The drone technology will have a major impact on shipping in 2018 and will have prolonged ramifications for its future. While some technologies related to drones are already well advanced, others are still in early development. While the drones are already in use in other industries and just needs a trigger for it to be adopted in maritime.

Aside from the safety and efficiency aspects, shipping companies also want to avoid typically three things:

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Sea News 69

FEATURE

DRONES ARE THE NEW BUZZ IN THE SHIPPING INDUSTRY

DRONES

Drones are the new buzz in the shipping industry Even as Unmanned Aerial Systems (UASs) are gaining popularity across the globe, advancements in Drone technology are increasingly impacting the maritime industry. Malcolm Connolly, Founder and Technical Director, Cyberhawk explains.

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he technology has proved its steel in fostering ship safety, tank inspections, weather updates and many other sectors linked to shipping.

Sea News interviewed Malcolm Connolly, Founder and Technical Director, Cyberhawk on drones and their effectiveness in the shipping and maritime sector.

How do you think the Maritime and Shipping sectors can benefit from Drones bearing in the low profit margins in the sector, and does ROI need to be quick?

Two of the main benefits of drone technology for the maritime and shipping sectors are reduced costs and quicker inspection. In one recent project, Cyberhawk conducted internal inspections of 19 cargo oil tanks on an FPSO and reduced inspection times from seven days per tank to one. Not only did this in turn reduce day rates and bed space required, but also avoided the use of scaffolding resulting in a seven figure cost saving for the client.

What do you think will be the short and midterm impact of drone technology on the sector?

In the short term, drones have already introduced an inspection access method which is quicker, cheaper and faster than traditional alternatives such as rope access or scaffolding. Developments already in the pipeline include unmanned entry to tanks, and a viable UT drone solution to take thickness measurements inside these tanks. The ultimate goal is to remove the requirement for personnel to enter the tank.

Drones reduce persons on board (PoBs). How do you see more technology affecting the jobs in the sector and what opportunities could they open up?

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DRONES ARE THE NEW BUZZ IN THE SHIPPING INDUSTRY

FEATURE DRONES

Drone technology presents a step-change in the industry and the opportunity to upskill personnel. At present, technicians are still required to undertake contact NDT/tactical work, albeit there are aerial solutions in development which are set to remove some of this work in the future. In many cases, these robots will still need human operators, or at least supervisors, so that they can be utilised safely. The data captured from drones is also forming part of a new industry in itself, one involving data scientists, analytics, machine learning and artificial intelligence.

This opens up an entirely new career path for both the current and next generation of workforce.

What do you see as the three main blockers for the sector in adopting drones?

At present, a drone contact NDT solution for UT testing is not available in the market, however there are developments in progress to address this.

Cyberhawk is currently at the forefront of this area, already trialling our own solution which we expect to commercialise in the coming months.

Ensuring buy-in to new technology from all project stakeholders can also be challenging due to the volume of people involved – asset owners, engineering consultancies, maintenance contractors, classification bodies and often more. The experience and knowledge of drone technology and its application can differ significantly among individuals.

The last few years has also seen an insurgence of drone companies emerge however not all pilots are equally skilled. Furthermore, the pilot must understand what they are looking at, and what they are looking for in order to provide value to the client. There are few

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companies equipped to handle highly complex drone inspection projects and a great deal of pilot training and industry inspection experience is required.

Cyberhawk’s pilots typically undergo 18 months of training before working on offshore projects, and are accompanied by an industry qualified inspection engineer to ensure the right data is captured.

Anything else you would like to add about how the sector should be moving forward into the sphere of drones?

What we increasingly see are operators/owners who are less concerned about the means of inspection and more interested in the power of the data captured.

Cyberhawk has already developed visual asset management software specifically for internal tank inspection, allowing asset teams and contractors to gain a 360 degree view of the tank and view detailed imagery of defects and engineering analysis, without having to physically enter the tank. This drives further efficiencies such as better cross-team communication, reduced visits to the asset and evidence-based decision-making.

ABOUT CYBERHAWK: Founded in 2008, Cyberhawk Innovations is the world leader in UAV inspection and survey and the conversion of UAV data into powerful management information.

An industry pioneer, the company has completed more than 25 world firsts since its inception. Cyberhawk will be at the ‘Tank Storage Asia’ conference which is being held in Singapore on the 26th and 27th of September 2018.

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FEATURE

WILL SEAFARERS DRIFT AS TECHNOLOGY SURFACES?

SEAFARERS VERSUS TECHNOLOGY

Will seafarers drift as technology surfaces?

The more we move into an age of technology driving the shipping industry, the less we will need seafarers and the more we will come to rely entirely on IT to keep the ships sailing. Mike Godfrey, Associate Editor explains.

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ow pick the truth from the fiction in that lot and then decide if a truly autonomous shipping world is what we can expect and, what we really want.

The shipping world struggles with seafarer recruitment and the retention rates are hardly something to write home about: the conditions on board some ships, the long hours; weeks away from family and still in many cases, the lack of communication facilities don’t make for a thoroughly appealing job profile. So what better way of getting around these issues than dropping

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everything in the lap of technology: after all, isn’t this what we developed and adopted robotic operational equipment for?

We all have our views and mine is that robotic, autonomous, IT-driven and whatever else you want to describe the future of shipping technologies as, are not going to be at the expense of the crew member, the dedicated seafarer or the diligent captain. There is no substitute for a human in shipping when there are so many variables involved. Yes it will come but not in the near future: the vision of autonomous ships

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WILL SEAFARERS DRIFT AS TECHNOLOGY SURFACES?

FEATURE SEAFARERS VERSUS TECHNOLOGY

passing like computers in the night are still a long way off any coast!

We should still be thinking in terms of how technology can aid, assist and help develop the seafarer. They need new skills: navigation can be easily handled by technology but this is a world of increasing cyber-crime and concerns over hacking are not going to disappear.

The real challenges will be in the way systems are integrated with the human element and what sorts of training will be offered to seafarers to cope with these challenges. Sending a ship the wrong way can seem frighteningly easy by hacking the ECDIS according to cyber-security specialists Pen Test Partners, a maritime penetration testing and security specialist company. They recently reported: “We often find a lack of network segregation on the vessel. Hack the satcom terminal and you’re on the vessel network. ECDIS are the electronic chart systems that are needed to navigate. They can slave directly to the autopilot – most modern vessels are in ‘track control’ mode most of the time, where they follow the ECDIS course. Hack the ECDIS and you may be able to crash the ship, particularly in fog. Younger crews get ‘screen fixated’ all too often, believing the electronic screens instead of looking out of the window.

We tested over 20 different ECDIS units and found all sorts of crazy security flaws. Most ran old operating systems, including one popular in the military that still runs Windows NT! One interesting example had a poorly protected configuration interface. Using this, we could ‘jump’ the boat by spoofing the position of the GPS receiver on the ship. This is not GPS spoofing, this is telling the ECDIS that the GPS receiver is in a different position on the ship. It’s similar to introducing a GPS offset (which we can also do!)”

If ever there was a reason to doubt that seafarers will continue to be an important element in shipping, then reports such as that will be a warning to those still thinking of fully autonomous shipping.

Maybe the way to look at the future seafarer will be in terms of a monitor: working with the on-board systems and relaying issues back to a land base; discussing operational fine-tuning, managing navigational changes and providing an overview of conditions that may be initially beyond technology. The idea of a ‘remote crew’ operating from land is appealing in terms of work environment, costs and accessibility but information sent from vessels is invaluable and the presence of a human on a ship is still going to

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be needed in the short-term run up to autonomous maritime operations.

Quite probably the issue that will dictate the presence of crew at sea will be in safety and cyber-security: this places the seafarer as the final line of defence and also the most valuable asset – someone to see, understand and relay information to other people back on land.

They will also be the protectors of systems from cyber intrusions and this will be important when IT can be used against IT in a cyber-attack. But we should also remember that seafarers will be required for equipment maintenance and repairs of at sea despite the automation of many processes.

Seafarers have often been one of the last things to consider when pulling together a maritime operation. Often poorly trained and lacking decent communication between themselves and owners, many seafarers were (and possibly still are in some regions) as merely there to satisfy regulations and keep the ship on course: “If we can do it with three crew members, then why spend money on five?” The accountants would be delighted to hear that but the industry needs people committed and interested in going to sea!

The age of the robot ship is not far off; the automated vessels of the future are in production and testing, yet the technology and the desire for complete technology-driven operations is not. Seafarers in one form or another will be with us for some time to come and that’s been suggested by leading lights in the maritime world such as Rolls-Royce. Therefore the least we can do is train seafarers to be an integral part of this brave new world.

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FEATURE

RISKS IMPACTING THE SHIPPING INDUSTRY

TECHNOLOGY DEVELOPMENT

Risks impacting the shipping industry Transportation keeps the global economy moving. Baibhav Mishra, Associate Editor explains. complex markets, transient workforces, disparate regulatory frameworks, the inexorable march of technology and geopolitical shifts. Far from being isolated in silos, these factors interact with each other in complex ways that are difficult to understand, let alone predict.

The threat from new and emerging competitors is the number one risk on the minds of executives in the transportation industry in the Middle East and Africa region, according to Willis Towers Watson’s 2016 Transportation Risk Index report.

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ny operational disruptions have wider consequences for society, making the management of the associated risks a priority that should transcend industry boundaries.

The world economy has surged over the last half century, and that growth has been largely driven by globalization and the consequent increase in trade.

International trade in goods and services has increased from around $4 trillion in 1990 to $24 trillion in 2014.

This increase in trade would not have been possible without an equivalent rise in the capabilities of the global transportation sector. More than just a mover of goods and people, transport is a key driver of economic and social development. It brings opportunities for the poor and helps economies to be more competitive.

The transportation sector’s intimate relationship with the global economy means that the risks faced by the industry are influenced by factors such as increasingly

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The findings of the Index, which includes the opinions of 110 CEOs and 80 CFOs, reveal a fluid risk landscape that is increasingly complex and interconnected. While proactive risk mitigation strategies remain central to corporate resilience, preparedness and response are now just as critical to a company’s performance.

In general, the prolonged economic struggles of most shipping lines have made the maritime sector more sensitive to risk than other modes of transport.

Maritime transport providers perceive cyber-threats and data privacy breaches to be their top risks.

Dissenters from that view argue that cyber-risk fears are fueled by an alarmist media environment where discussion is dominated by hacking horror stories, illintentioned insiders and suggestions that the critical systems of most top corporations have already been compromised (the owners just don’t know yet). But there is no denying that the skillsets of the digital threat actors are growing, just as the transport industry’s increased reliance on third-parties is multiplying the potential points of entry. Clearly, an increasingly connected world requires a community response to many risks. No company, no matter how vigilant, is an island.

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RISKS IMPACTING THE SHIPPING INDUSTRY

FEATURE TECHNOLOGY DEVELOPMENT

DIGITAL VULNERABILITY AND RAPID TECHNOLOGICAL CHANGE Global commerce is increasingly conducted in a digitalised world where automation and the Internet of Things are transforming virtually every sector of the economy. While some modes of transportation have been slow to adopt new digital tools, the overall pace of engagement is quickly escalating.

Step by step, transport companies are embracing the digital revolution. In fact, digital technology is becoming so pervasive that many businesses underestimate the extent to which they are now dependent on it. Even risk-savvy firms are struggling to map the chain of consequence that informs an effective mitigation strategy.

According to Interpol, “more and more criminals are exploiting the speed, convenience and anonymity of the internet to commit… criminal activities that know no borders… cause serious harm and pose very real threats to victims worldwide.” Consultancy firm PwC believes the global cost of data breaches alone could exceed $2 trillion by 2019. Criminals are clearly flourishing in the unprecedented access and connectivity the internet provides.

Understandably, the risks inherent in the rapid rise of the digital economy are a primary concern may enhance cost efficiency, collective intelligence and product delivery, but they also multiply digital entry points to strategic commandant- control centers, commercially sensitive information and private third-party data.

THE STRATEGIC OPPORTUNITY OF RISK Risk is a path to growth. Industries tend to fixate on the downsides of risk – its potential to disrupt operations, destroy profits and damage reputations. But risk can also present opportunities for those able to see the potential. Smart companies seek out measured risks to gain competitive advantage. They don’t always play safe. Managing modern business risks is a far more complex proposition than it was when the responsibility fell exclusively to structural engineers, finance managers and the champions of the IT room.

Today, the assessment of the risk landscape is almost more important than the mitigation strategy, although ideally the two should mutually support and deliver corporate strategy.

In fact, in an era where risk is becoming more elusive and intangible, the emphasis has shifted toward preparedness for and response to events, rather than

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development of static strategies that mitigate individual risks. The new complex, interconnected risk landscape requires a comprehensive, knowledge-based response that is coordinated from the boardroom, where corporate strategies are formulated.

TECHNOLOGICAL POWER The transportation industry rates the risks associated with digital vulnerability almost as highly as they do those in the geopolitical sphere.

The biggest individual threat across all modes of transport in the MEA region is the threat from new and emerging competitors, with growing competition a concern across all modes of transportation: land, sea and air. This is followed by failure of critical IT systems and lack of skilled labour and mobility in the top three risks. As transportation embraces the technologies of the digital age, it must build community risk strategies to ensure that all systems in the global value chain are secure and reliable.

The Willis Towers Watson survey found that the prolonged economic struggles of most shipping lines have made the maritime sector more sensitive to risk than other modes of transport. Maritime transport providers perceive cyber-threats and data privacy breaches to be their top risk. But shipping companies are also heavily exposed to the complexities of globalisation.

Every mode of transport would benefit from the development of more efficient fuels and propulsion technology. At present, ship owners in particular face significant regulatory and technical uncertainty, which is raising investment risks. Some are using advances in computational fluid dynamics and model laboratories to streamline hull and bow structures and design more efficient propellers to achieve roughly the same end.

But amidst all the automation, the digitalisation of business processes, the cascade of emerging technologies and the endlessly shifting markets and consumer trends, perhaps the transportation industry’s biggest opportunity lies in the competition for talent. People are the binding agent between corporate strategy and goal delivery.

As technology changes, the importance of retaining and retraining the associated skillsets to manage the systems, tools and assets will not diminish. Even robots will need programmers. Those who have the market intelligence to align the skills of their workforce with emerging technology will have grasped a significant opportunity.

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COFFEE TIME

MY FIRST STEPS THROUGH THE GANGWAY

HUMOUR ON HIGH SEAS

My first steps through the gangway Sagarika Ranjan, a Senior Journalist based in India explains

Hours later, in my room, my heart disobeyed all stimulus of tiredness and kept pounding. I had met the team, seen the duty room, the mess room and the engine room. I could empathise very well with the navigators on the ship because for quite a few days, finding my way to the mess room was nothing less than navigating into that vast expanse of water.

Thoughts in the mind clogged the brain – first job; hope all goes well; the first salary will be there in my account very soon; and of course, I wish I could have asked someone’s opinion on whether I looked good in my new boiler suit.

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he breeze still feels cool. It has been nine long years since I first walked onto these decks, but everything remains an adventure even today. Life of a sailor is pretty amazing. No, I am not talking about the voyage around the world, I am talking about the sailor in the ship, within the very vessel.

One suitcase, a sling bag and 100+ tips from my parents had accompanied me to my first voyage. First international flight – Kolkata to Mumbai to Manila to Panama and then to the Balboa beach.

The sight is as fresh as it was then. Kilometers of beauty laced the port. It was BIG. Silly, yes it might sound but that day I did compare it to the simulator ship of my college. It was like a dream coming true. It was a ship and a real one.

Every step onto the gangway that day took me one-step closer to that Real Ship of mine. I was happy, may be a bit, actually a little too nervous. It was no longer the static college ship.

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All the safety gears were pretty exciting except that I had doubts about whether or not the earplugs worked. The noise in the engine room was beyond decibels. Even though my ear-plugs were stuffed right into my eardrums, I could hear every sound pretty distinctly. Yes, yes, I am an engineer and the sound of this machinery should be music to my ears but trust me, it wasn’t until I realised that my professional marriage may end in sad divorce and made peace with my noisy partner.

My next battle was with the waves because they made everything roll. Our ship was a slave to the rhythms of the waves and our bowels hated it. The more the ship rolled to the tapping of the waves, more frequent were my visits to the washroom. Sea-sickness had taken over. Vomiting, for quite some time dotted our days till our Chief helped us with the tablets.

After every long day there was an even longer night.

Every night I made peace with my solace till that last cross I put on the 270th day of my first voyage. Yes, it was time to walk back through the gangway – I was going home, to my mother!

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What we do?

We understand the event industry dynamics and the impact it can make on events. Our technical + commercial knowledge unsurpassed.

We help tell and show your story to a greater audience, credibility. Giving you the ability to accelerate your growth and gain the right sales opportunities.

www.ilexhibitions.co.uk +44 (0)20 7689 9009 sales@imageline.co.uk