Growth potential of maritime trade with cloud-based platforms

Ports need help in modernizing the following areas

• Bottlenecks present in managing the logistics of loading and unloading and faster throughput of cargo
• The problem is accentuated by the lack of usable space and storage space in the port, so the real-time collaboration of all parties is required
• Unscheduled breakdown of critical equipment like cranes / RTG
• Collaboration with various agencies like government agencies, customs, customers, logistic providers, and vendors in real-time is not available currently
• Action after a decision is initiated manually. For example, a Delivery Order is reviewed and sent manually before sending it out to the Agent.
• Use of machine learning in anomaly detection and visual-based data entry (like facial recognition, drone-based inspections, and visual quality checks). Too much effort undergoes in manual data entry, mistakes during data entry, report upload and downloads, and no alerts. Routine and predictive data still need to be entered from scratch

Why do maritime companies wish to leverage cloud-based platforms?

Yes, maritime stakeholders such as shipping lines, container yards, terminal operators, forwarders/consolidators, and transporters are rapidly leveraging cloud computing. Here are some reasons why they are eyeing more on cloud computing.

Cost cutting
According to a recent study, 50 percent is the cost savings rate these stakeholders realized by deploying cloud-based platforms. These platforms enable companies to cut down unnecessary infrastructural costs. Also, it enables them to meet their variable expenses as they can pay for the applications which they use and smartly manage their resources.

Agility
Yet another key benefit of having a cloud-based platform. Resources can be monitored remotely, and the movement of cargo can be tracked on every milestone. Documentation is made online and involves validation and verification from the authorities. Therefore, the entire operation is digitized seamlessly.

Elasticity
Maritime trade is a cyclical industry with steep fluctuation patterns in transactional volumes. A cloud-based platform enables all these stakeholders to adopt smart capacity handling. They can instantaneously scale up, or down that is in line with the market conditions.

Integrating global & local operations
Several shipping lines stood up right after lockdown restrictions and implemented technologies, such as online slot booking. This not only helped them increase the scale of their operations but also enabled them to garner clientele from different geographies across the world. In turn, their operations too expanded on a global scale.

Possible applications where the above can be realized in maritime trade

Cloud-based platforms, i.e., port community systems, are not the thing of the future. It is rather a trend that has already emerged and dominating the maritime industry. The number of digital investments made by leading shipping lines and port authorities are testimony to this fact. In the coming days, technologies such as 5G, Blockchain and the Internet of Things (IoT) will find more relevance as IT solutions providers are inculcating these technologies rapidly. Precisely, we are already in the new normal.

Digital documentation (Delivery Order, Bill of Lading)

It is said that to process Delivery Order alone, the time consumed is 3 days. And this means the cargo/container is strangled in the source port environment only for 3 days. Whereas a cloud-based platform could easily digitize the entire documentation process simultaneously.

Digital vessel operations & management

On average, 40 hours is the time taken for a vessel to unberth in a seaport. This significant time reflects the manual activities that exist in some ports even today. However, cloud-based platforms can seamlessly help overcome these delays with digitized operations.

Milestone tracking

Forwarder/consolidator, transporter and other stakeholders who are not in the port ecosystem often ask, “Where is my cargo?” Yes, this results from the glitches involved in the maritime value chain. Milestone Tracking is an application of a cloud-based platform which could enable micro-level tracking of the cargo/container in the maritime value chain.

Digital inventory/warehouse management
During the lockdown restrictions envisaged last year, several warehouses in the yards and terminals went non-functional. While several yard managers decided to innovate and digitize remote working as well as monitoring. Digital warehouse management could enable 24×7 monitoring of activities. Most importantly, it is more reliable when it comes to thwarting challenges such as cargo theft.

A modern smart port and its community can adopt cloud-based systems and derive benefits like:

• Modernization of logistics and gate operations – Ports need to coordinate in real-time with various players for quick entry and exit, given the limited space in the ports. For example, based on the unloading sequence, the correct order of trucks will be set at the gate. Automatic sensors for weight and number plate readers will eliminate data entry. Mobile alerts will help employees coordinate with all parties
• AI and ML, based on parameters such as vibration and temperature and usage, can predict when a breakdown will occur for cranes or any other equipment.
• The system helps in drone-based inspections and on-the-spot data entry on remote sites. It also predicts the data to be entered based on previous records and/or visual readings
• Facial recognition for attendance and safety purposes, where the system checks for masks/helmets and real-time alerts
• Automated vendor and customer payments based on machine learning matching the unreconciled entries
• The machine predicts what is usually approved and does not even bring it up for approval. Reduces processing time from weeks to less than a day
• Specific mobile apps for collaboration among various roles to be used anywhere.

Looking forward
Forward planning with COVID-19 has proved difficult, with new variants, restrictions and long-term effects proving hard to predict. The Global Trade Atlas Forecast suggests recovery for the maritime industry in 2021, with seaborne trade forecasted for a 6.9% growth rate from 2020 to 2021.