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Aerospace and Defense Review

Improving Maritime Supply Chains

Shippers are increasingly becoming aware of the benefits technology can unlock within their operations.

FREMONT, CA: Global supply chains and international economies heavily rely on the maritime industry. The International Chamber of Shipping estimates that merchant fleets carry 90 percent of world trade. More than 50,000 ships in the maritime industry are worth around USD 1.8 trillion, transporting an estimated 11 billion tons of goods annually. Digital transformation has been a long-time delay for the maritime industry. The pace at which digitalization is progressing in aviation, which is perhaps the closest industry to shipping in terms of asset-heavy nature, critical role in global supply chains, safety, and environmental challenges, shows us that there is still a long way to go.

However, leading technology companies support ship owners and operators as they embark on their digital journeys as the maritime sector's digital transformation accelerates. Increasingly, shipping decision-makers are becoming aware of how technology can improve their operations and help them fulfill their key role in the supply chain more efficiently and effectively. Increasingly, shipping decision-makers are becoming aware of how technology can improve their operations and help them fulfill their key role in the supply chain more efficiently and effectively.

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Connecting all the dots: Companies need to utilize data to make informed decisions promptly, transparently, and aligned with business objectives in the year ahead as the maritime industry faces further commercial and regulatory evolution, including rising fuel costs, complex personnel management, and increasing standards. Data must be integrated and shared within the vessel ecosystem and with other stakeholders in the supply chain – like port operators – for ship operations to be seamlessly connected. A lack of interoperability and integration could result in a complex, fragmented digital ecosystem. Technology providers should instead strive to ensure that solutions span seamlessly from the engine room to the bridge, to the board room, and from ship to shore. A comprehensive platform must combine a range of data inputs to break down information silos. As a result, transparency, accountability, and clear, actionable insights are achieved across the entire ecosystem. For some, the explosion of data volumes is daunting, but it offers others a chance to capitalize on it. Companies can obtain a competitive advantage if data is managed properly and they collaborate with the right partners.

Reducing emissions: Around three percent of global carbon dioxide emissions come from the maritime industry. Reducing maritime emissions has been a priority for regulators, ship owners, and charterers, including Amazon, Ikea, and Unilever. With technology, an organization can uncover its full potential, support its decarbonization goals, and pave the way for sustainable shipping. Technology can truly pave the way for sustainable shipping. Stakeholders can use data-driven insights to navigate the incoming complex environmental regulations set to shake up the industry on an operational level. 

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