Free Porn
xbporn
5.9 C
Hamburg
Monday, December 9, 2024
Home Industry Opinions Part I: Industry needs standardisation and collaboration for economies of scale

Part I: Industry needs standardisation and collaboration for economies of scale

In serving the multitude of clients bringing goods from their point of origin to their point of destination, the supply chain industry may be conceived as a network of actors having different capabilities to fulfil the needs of their customers.

In such a business network, business actors would be of different sizes and undertake different roles, where some of them are in direct interaction with the client while others may be serving the needs of the client’s client. In many industries this has brought companies to focus on core capabilities and pursue business in the so-called networked economy. Each participating actor then has a role as part of such a value-creating system.

The supply chain ecosystem is quite complex, involving multiple actors that are continuously trying to enhance their processes, optimise their costs, and enter strategic alliances and collaboration with other partners to better serve their customers. In pursuing business in a networked society efficiently, participating actors must have agreed on ways of communicating, to share information on both the key physical parameters, such as the identity and location of containers, and on other important organisational information, such as bills of lading, and timing of operations and movements.

As is becoming clear in container shipping, the collaboration between shipping lines is now evolving from operational collaboration focused on rationalising resources and offering more global coverage, to strategic collaboration focused on IoT (Internet of Things) communications and smart everything data exchange. The container segment of shipping has a profound proven history of collaboration in which the various actors and elements back each other up. Some examples of such collaborative endeavours are:

  • Different shipping line alliances, such as 2M and Ocean Alliance signing cooperative agreements including vessel sharing on major global routes. This can be seen as similar to the aviation sector where different airlines form strategic alliances (such as Star Alliance, OneWorld, and SkyTeam).
  • Several shipping lines, namely CMA CGM, MSC (Mediterranean Shipping Company SA), and Maersk, have together invested in a French start-up called TRAXENS to deploy smart containers across their fleets.
  • The top shipping lines have helped establish a non-profit consortium called Digital Container Shipping Association (DCSA) to develop technology standards to transform inefficient practices and accelerate digitalisation through a unified industry effort.
  • The TradeLens platform, coming out of the collaboration between Maersk and IBM followed by CMA CGM, MSC, Hapag Lloyd, and Ocean Network Express (ONE) becoming engaged as well, is offering opportunities to standardise all the events related to goods movements track-and-trace across different means of transport, stakeholders including cross-border agencies.

HMM joined THE Alliance in April this year. (From left) Jae-hoon Bae, President and CEO, HMM; Rolf Habben Jansen, CEO, Hapag-Lloyd; Jeremy Nixon, ONE CEO; Bronson Hsieh, Chairman and CEO, Yang Ming.

Collaboration is a key factor in enhancing the services and increasing the customers’ satisfaction, achieving cost-effectiveness and meeting sustainability goals. The purpose of this article is to elaborate on some of the possible collaboration opportunities seen in the light of what comes out of digitalisation empowering the network economy of container shipping.

What may be seen now is that this collaboration is not just happening between different complementary service providers, downstream to the customer; the collaboration is now expanding horizontally between competitors facing the same technical and regulatory challenges.

Capability building among shipping lines

Historically, the shipping lines were more focused on their vessels’ capacity, building bigger ships and trying to optimise their stowage plans and routes. The success of their alliances depends on the degree of compatibility of their service networks. Historically, shipping lines have also secured port capabilities by establishing such things as own terminal operating companies and having their own tugboats operating within the port.

However, bigger ships have not generated significant economies of scale and have yielded only marginal cost benefits for the shipping lines while creating significant costs elsewhere such as the need for dredging deeper draught berths, and wider access roads to the dockside to cater for increased cargo volumes per ship.

Hence, the race to build bigger ships has slowed or perhaps even stopped, and shipping lines are now looking elsewhere to optimise costs. The ongoing efforts in utilising digitalisation for supply chain integration have also put port developments in focus.

The world’s largest container ship HMM Algeciras was christened on 23 April. Credit: HMM.

Trade patterns as well as short first and last-mile distribution carried out by not utilising sea transports points to the need to empower a large network of smaller ports to serve the needs of overall sustainability along the supply chain. At the same time, ports need to become smarter and concerns have been raised over some ports pushing too hard at establishing themselves as the gateway to larger regions.

Digital solutions ease collaboration burden

As an example of historical collaboration among shipping lines, when one carrier has had more bookings than its capacity, competitor carriers that still have capacity have been approached, so as to still satisfy the needs of the original client rather than refusing a booking outright. This buyer-seller collaboration ensures that the customer is served, and the co-operating competitors both receive revenue by maintaining or even increasing respectively their shipment volumes and capacity utilisation.

All the document flow associated with such collaboration has been considered as the inevitable consequence of enabling the different collaborative arrangements. The traditional flow of exchanged documents includes specifications, production schedules, and forecasts such as booking requests, booking confirmation, shipping instruction (BoL instruction) and shipment status and tracking via various electronic data interchange (EDI) messages.

Nowadays, taking full advantage of digital technologies is clearly a high priority for shipping lines that wish to benefit from smart assets and big data to transform their processes and gain in efficiency and security.

Leading shipping companies are investing heavily in smart assets (smart containers, smart vessels, API gateways, being part of smart ports development efforts, and smart everything) to digitalise their fleet, operations and administration. In this effort, the ecosystem actors are collaborating to define enabling technologies, including specifications and requirements for Internet of things (IoT) communication and data exchange interfaces definitions, and competing in value-added services definitions.

Some of these efforts and expected outcomes are elaborated below.

Use cases from different standardisations

Smart containers

Smart containers are traditional containers – reefers, dry or tank containers – with added electronics. The added electronics enable the tracking and monitoring of a container during its journey and the conditions under which its contents have been transported.

The smart container solution can be configured to send real-time data regarding location, door opening and closing events, shocks and vibrations, temperature or other relevant physical parameters.

Smart container data offering door-to-door visibility of the trip execution is conceived as foundational for end-to-end supply chain excellence.  Smart container data enable the creation of value-adding services such as estimated time of arrival (ETA) calculation, optimising the container flow as part of fleet management services, container utilisation management, monitoring of the condition of the container, CO2 emission calculations for the journey, as well as predictive maintenance.

Smart containers will be a key element to the digitalisation of the shipping industry and that requires smart container data model.

The United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Smart Container Project has delivered formal global Smart Container Business Requirements Specifications Standards and a standard Smart Container Data Model based on the UN/CEFACT Core Component Library.

The next steps in standardisation efforts will be focused on completing a standard describing the data governance rules with respect to the competitive advantages of all the actors, as well as defining a catalogue of standard Smart Containers APIs (Application Programming Interfaces) to communicate all the standard smart container data elements.

In addition to defining standards for data exchange protocols, the collaborative efforts should result in defining the requirements specifications of IoT communication protocols. In fact, one of the biggest cost factors of smart containers is power consumption that is mainly consumed to establish power-hungry cellular communications while roaming.

In addition, establishing connections almost everywhere is very challenging due to the highly metallic and harsh environment in which containers are deployed and frequently shielded from mobile communications signals. The leading shipping lines must define the technology to be deployed in smart ports and on smart vessels to ensure extended reach for smart containers with no line-of-sight to enable coherent and sustainable massive deployment of smart containers.

Time stamp data sharing for port call optimisation

During recent years, a lot of focus has been on using digitalisation for supporting the co-ordinating and synchronisation of port operations with what happens at sea and in hinterland transport operations. For this purpose, the unbiased, non-proprietary, open, and international concept of Port Collaborative Decision Making (PortCDM) coming out of the European MONALISA project and Sea Traffic Management (STM) efforts, has been brought forward providing both operational and technical guidelines for regional and local implementations.

This effort of international standardisation is a way for episodic visiting actors, such as the ships from shipping lines, to be able to share relevant advance information and progress in the same way with all ports to which they make port visits.

Organisations like the DCSA show that shipping has recognised the need to standardise and collaborate.

By having a standardised way of communicating and with agreed procedures for collaboration, this also enables shipping lines, for example, to exchange time slots given a delay of one ship with another one that is closer to arriving.

One of the next steps is defining the use cases and the standards interfaces between the data collected from the seaside and the hinterland side supporting the optimisation of the port as a transhipment hub, and by that also taking advantage of the smart container data and services.

DCSA Track and Trace Standards

The focus of the DCSA is to simplify shipment visibility across multiple carriers, enabling them to better plan and optimise their shipment handling activities. DCSA Track and Trace Standards describe the underlying set of processes along with the data and interface standards needed to communicate the fundamental track-and-trace information across multiple carriers.

Next steps could be reviewing and redesigning these processes taking advantage of emerging relevant standards and new data availability, namely the smart container services and data on berth arrival, departure planning and port operations. This consistent approach, endorsed and supported by the shipping lines, is already implemented in their ongoing digital projects.

Combinations of the different initiatives

The DCSA shipping industry is currently working on providing requirement specifications for the IoT communication technologies of the smart container to ensure a better coverage for the smart container. While the smart container standard has enriched the UN/CEFACT data model with smart container and geofencing data, the DCSA track and trace standard is also aligned with the former data model thereby taking advantage and preserving existing investments.

DCSA has also started an initiative to achieve significant pollution emission reductions through advanced berth arrival and departure planning, at scale building upon standardised principles of collaboration and standardised data sharing.

Tomorrow Part II: Standardisation – key to enabling benefits of collaboration

Authors: This report was written by; Hanane Becha, TRAXENS & UN/CEFACT, Mikael Lind, RISE (Research institutes of Sweden), André Simha, MSC (Mediterranean Shipping Company SA), Francois Bottin, CMA CGM, and Steen Erik Larsen, A.P. Moller – Maersk.

A common concern for the author group is the need for standards on data collaboration. The group has come together to identify the diverse opportunities to boost the economies of scale coming out of standardised data collaboration. As agreement on standardization must be made by, and will concern, multiple organisations, this article is to be seen as an encouragement for joining forces within the maritime industry.”

About the authors

Hanane Becha is actively driving smart assets standardisation for key industries such as maritime and rail freight. She is currently the Innovation and Standards Senior Manager at TRAXENS and she is also the Leader of the UN/CEFACT Smart Container Project as well as the UN/CEFACT Cross Industry Supply Chain Track and Trace Project. Hanane has received a Ph.D. and an M.Sc. in Computer Sciences from the University of Ottawa and a B.Sc. from l’Université du Québec. More information about Traxens

Mikael Lind is Associate Professor and Senior strategic research advisor at RISE, has initiated and headed several open innovation initiatives related to ICT for sustainable transport of people and goods. Lind is also the co-founder of Maritime Informatics, has a part-time employment at Chalmers University of Technology, Sweden, and serves as an expert for World Economic Forum, Europe’s Digital Transport Logistic Forum (DTLF), and UN/CEFACT. More information about RISE

Andre Simha is the Chief Digital & Information Officer at MSC Mediterranean Shipping Company, the second-largest container carrier in the world, whose team is responsible for implementing and developing the complex data flow between the company’s headquarters and its agencies around the globe, as well as steering the business towards the digital future of the shipping and logistics sector. Simha is also the chairman of the Digital Container Shipping Association (DCSA). More information about MSC

Francois Bottin is the Head of the Digital Factory, a global organisation having the responsibility of leading the digital transformation of CMA CGM Group and digital projects delivery. CMA CGM is a French container transportation and shipping company headquartered in Marseilles, leading worldwide shipping group, using 200 shipping routes between 420 ports in 160 different countries. More information about CMA CGM

Steen Erik Larsen is the head of Technology M&A in A.P. Moller – Maersk, the global integrator of container logistics, connecting and simplifying the supply chains. Larsen has the responsibility of the enterprise risk management aspects pertaining to information technology in integration and partnering, and is also representing Maersk in the Digital Container Shipping Association (DCSA). More information about A.P. Moller – Maersk.





Latest Posts

Could Magellan Straits Be an Alternative Re-Routing Spot?

The Straits of Magellan, located at the southern end of South America, could potentially offer a feasible alternative to the Panama Canal, particularly when...

CN Photo Project: The Picture of the Month

Container News wants to thank you all for participating in the CN Photo Project. Among all the very beautiful photos we have received, the Container News team has chosen...

Wallenius Marine trials ship design for world’s first wind-powered PCTC vessel

Wallenius Marine is conducting advanced wind tunnel tests for the world's first wind-powered PCTC (Pure Car and Truck Carrier) vessel. The tests are being carried...

Regime Change in Syria: Implications for Regional Trade and Stability

Syria has officially experienced a regime change, marking the end of President Assad's government, an incident which is about to bring major changes in...

New deal sees Harbor Industrial take helm of Portland’s Terminal 6 operations

Port of Portland and Harbor Industrial have reached a framework agreement for the operations of Terminal 6, Oregon’s only international container terminal. According to the...