Posted: February 19th, 2023

What is the role of technology in improving the efficiency and sustainability of maritime logistics

What is the role of technology in improving the efficiency and sustainability of maritime logistics, and what are the latest advancements in this area?
Technology plays a vital role in improving the efficiency and sustainability of maritime logistics, which is the process of transporting goods and materials by sea. Maritime logistics accounts for over 90% of global merchandise trade, and it faces many challenges such as congestion, delays, safety, security, environmental impact, and regulatory compliance. Digitalization, which is the use of digital technologies to transform business processes and operations, can help overcome these challenges and enhance the performance and resilience of the maritime supply chain.

According to a report by the World Bank and the International Association of Ports and Harbors (IAPH), better digital collaboration between private and public entities across the maritime supply chain can result in significant efficiency gains, safer and more resilient supply chains, and lower emissions. The report describes how digital technology can help streamline all aspects of maritime transport, from cross-border processes and documentation to communications between ship and shore, with a special focus on ports. The report also identifies the main barriers to digitalization, such as the legal framework, data sharing, cybersecurity, and human factors, and provides recommendations to overcome them.

Some of the latest advancements in digital technology that can benefit maritime logistics are:

– Big data analytics: The use of large volumes of data from various sources to generate insights and optimize decision making. For example, big data analytics can help predict demand and supply patterns, optimize routes and schedules, monitor vessel performance and condition, detect anomalies and risks, and improve customer service.
– Internet of things (IoT): The network of physical objects embedded with sensors, software, and connectivity that can collect and exchange data. For example, IoT devices can enable real-time tracking and tracing of cargo and containers, automate cargo handling and inventory management, enhance port security and safety, and reduce energy consumption and emissions.
– Fifth-generation technology (5G): The latest generation of mobile communication technology that offers high speed, low latency, high reliability, and massive connectivity. For example, 5G can enable remote control and operation of vessels and port equipment, support autonomous navigation and collision avoidance systems, facilitate high-quality video streaming and telemedicine services, and enable edge computing and cloud services.
– Blockchain solutions: The use of distributed ledger technology that enables secure and transparent transactions among multiple parties without intermediaries. For example, blockchain solutions can facilitate paperless trade documentation and contracts, improve trust and traceability in the supply chain, reduce fraud and corruption, and enable smart contracts and payments.
– Wearable devices: The use of devices worn on the body that can provide information or perform functions. For example, wearable devices can enhance situational awareness and communication among crew members, improve health and safety monitoring, provide training and guidance, and enable biometric identification.
– Unmanned aircraft systems (UAS): The use of aircraft without a human pilot onboard that can fly autonomously or remotely. For example, UAS can perform aerial surveys and inspections of vessels and ports, deliver cargo and supplies, assist in search
and rescue operations, and monitor environmental conditions.

These are some examples of how technology can improve the efficiency
and sustainability of maritime logistics. However, digitalization is not just a matter
of technology but also of change management, data collaboration,
and political commitment. Therefore,
it is important to foster a conducive environment
that supports innovation
and adoption
of digital solutions
in the maritime sector.

References:

: World Bank & IAPH (2021). Accelerating Digitalization: Critical Actions to Strengthen the Resilience of the Maritime Supply Chain. https://www.worldbank.org/en/news/press-release/2021/01/21/digitalizing-the-maritime-sector-set-to-boost-the-competitiveness-and-resilience-of-global-trade

: Gavalas et al. (2022). Digital adoption
and efficiency in the maritime industry. Journal of Shipping
and Trade 7(11). https://jshippingandtrade.springeropen.com/articles/10.1186/s41072-022-00111-y

: Katsoulakos et al. (2020). Digitalization in Maritime Industry: Prospects
and Pitfalls. In: Kavoura A., Kefallonitis E., Giovanis A. (eds) Strategic Innovative Marketing
and Tourism. Springer Proceedings in Business
and Economics. Springer. https://link.springer.com/chapter/10.1007/978-3-030-39688-6_4

: IMO (2019). Maritime transport in a changing climate: How can technology help? https://www.un.org/en/climatechange/assets/pdf/IMO_Maritime_Transport_in_a_Changing_Climate.pdf