Page 16 - 2021 - Q4 - Minerva in Focus

DIGITALIZATION IN SHIPPING Can global shipping really rise
to the challenge of rapid digitalization?
by Dimitris Tsapoulis
Chief Operating Officer,
The Signal Group
16 MINERVA IN FOCUS – ISSUE 18 / Q4 2021
As an industry that was late to the party, we are catching up fast.
The giant leap forward offered by machine learning and AI is ena-
bling the maritime sector to take on the challenges of decarbonisa-
tion, improve efficiency, and lift productivity. From the engine room
to the chartering desk, there are many areas ripe for innovation
and improvement through software. But there are still many hur-
dles to be cleared.
The first hurdle is to communicate success to the potential end-user. Why
should your maritime business invest in the latest tech? The maritime
tech community needs to improve its storytelling and really show how
new processes have actually transformed their clients’ businesses. Un-
derstandably, many shipping companies are focused on regulatory com-
pliance. Going beyond compliance and investing in simple, practical, and
impactful tech that improves performance is something the maritime
sector needs help with. This is something innovators must do more of. At
Signal, we have many success stories to share. Our experience in building
and investing in software technologies, using technology to increase our
tanker pools’ profitability, and working with entrepreneurs to develop
new solutions for the industry give us a unique perspective.
The second hurdle is data standardisation. In a world of multiple doc-
uments, platforms, and processes, data standardisation is not going to
happen simply because a few larger companies lead the way. We oper-
ate in a highly fragmented marketplace where no single actor is able to
effect change. Indeed, shipping is, in essence, many different industries
with huge differences in vessel, cargo and trading patterns. However, AI
is becoming more and more powerful and can eventually help circumnavigate the
problem. Intelligent systems able to recognise and standardise the many ways of
saying the same thing will increasingly negate the need for a set of standards or a
one-size-fits-all solution.
The third hurdle is the need for maritime tech to start from the ground up. Although
the concept of the connected ship has become a reality, vessels are still moving
targets in terms of connectivity. IT literacy onboard is not on a par with what one
might expect in a sophisticated office environment. For example, being late starters,
we lack the shared infrastructure and historic investment the financial sector enjoys.
The huge and flourishing fintech sector stands on the shoulders of towering giants.
The fourth hurdle is the sheer size of the challenge. Shipping’s challenges are global.
As an industry, we can only be as strong as our weakest link.
These four hurdles are not insurmountable. The more we succeed, the more stories
we have to tell. Technology is already helping with repeated and repetitive tasks,
leaving space for humans to build all-important relationships. Application Program-
ming Interfaces (APIs) can be injected into pre-existing client infrastructures to help
create better solutions to day-to-day problems, like freight price discovery, vessel to
cargo matching, and forecasting tonnage supply and demand. The size and complex-
ity of the challenge mean that shipping needs to attract and retain the best brains.
Here, the attraction for a young, skilled, and intelligent person to work in the tech
industry and help a global industry that is only at the start of a profound technical
and operational change is great. For many, shipping is the final frontier.
The Signal Group is part of this wave of change. We are building intelligent systems
that are delivering tangible results. We are attracting data scientists, programmers,
analysts, and maritime professionals. We are confident that this blend will lead to a
long-term solution.