Will Technology Replace Traditional Shipping Methods?

Exporters and importers have used traditional shipping methods to transport their goods over international waters for years. Technological advancements have made shipping more efficient, economical, and digitised. Automation has taken over and minimises human interference in shipping to ensure cargo security and improve operational efficiency. Let us learn more about how technology will replace traditional shipping methods. 

 

What do you mean by traditional shipping? 

Shipping is moving goods from one place to another via sea routes. Traditional shipping refers to the conventional methods of shipping goods where, typically, manual practices are used to transport goods and cargo from one location to another. Traditional shipping methods have been in use for many years. It was chosen over moving freight through land routes as shipping was comparatively cost-effective, and the ships could accommodate large cargo volumes. In traditional shipping, workers loaded the goods in wooden boxes, sacks, or barrels and loaded them onto ships. The goods were then transported to another port and manually unloaded. Traditional shipping methods have been the backbone of global trade for many years but also had drawbacks as they cost a lot of time in cargo loading and unloading and risked cargo damage due to the excessive manual handling at every port. With time, as technology came into use, the face of shipping changed and improved. 

 

How has technology changed shipping? 

1. Tracking systems- The estimated arrival time for ships and shipping containers in earlier days was a mere estimate. The evolution of technology in maritime has made it easier to track assets. Ships and shipping containers can be tracked during their voyage for an accurate arrival estimate. For example - Shipping companies use GPS and RFID trackers to track containers and ships. 
2. Minimising manual work- By introducing technology, the maritime sector has switched to automation and considerably uses less human interference compared to earlier times. By minimising manual labour, the ports aim to reduce the chances of cargo damage caused due to mishandling or human errors. For example, using artificial intelligence, automation, and data analytics minimises most manual work. 
3. Maritime security- Ships during the voyage are open to maritime threats of pirates, trafficking, cyber threats. Technology has advanced to help the maritime industry take measures to secure their cybersystems, safety of life, and cargo. For example, the International Maritime Organization coined the SOLAS convention to secure life at sea. 
4. Inventory management- IoT in shipping is beneficial as IoT sensors are attached to help in real-time inventory tracking. Suppliers can be alerted about the inventory surplus or shortage of specific goods. 
5. Predicting the supply chain- The supply chain can fluctuate during peak seasons, trade wars, or natural disasters. It is compulsory to predict the supply chain's influx or shortage of demands before it hits the trade market to prevent significant losses. Technology such as artificial intelligence is beneficial in predicting future demands by measuring historical supply chain data. 

 What are the possible technologies that will transform the shipping industry by 2030? 

With technology integration, the maritime industry has evolved and transformed. Technology has facilitated shipping activities such as transportation, tracking and port management. 

1. Autonomous ships- Automation in the shipping industry is a transforming revolution where maritime vessels are being operated by technology instead of having a crew onboard. If required, engineers can remotely monitor the ship from land. It ensures a large container carrying capacity for vessels as there are no or few crew members onboard, which also adds to ensuring the safety of seafarers. 
2. Drones- Container or ship inspection can be performed using drones to give images of angles that customs or other supervising officials cannot inspect manually. Drones can have sensor cameras to perform checks and transmit real-time data. 
3. Data analytics - All the data recorded from various maritime industry operations are stored for analysis. Shipping companies or related authorities can perform big data analytics to measure the operational efficiency of shipping, predict loopholes, and look for solutions to counter challenges in shipping. 
4. Artificial Intelligence - A highly advantageous technology, artificial intelligence is used mainly in shipping maintenance and data analytics. AI-based predictive maintenance helps predict any failures and breakdowns in the machinery, equipment, or vehicles used at ports or inside ships. It is beneficial in preventing economic losses. 
5. Blockchain - Maritime shipping is a significant logistics business and makes a considerable number of transactions each day. Therefore, it is essential to offer a standard platform for various shipping parties to collaborate and make legal transactions. Blockchain in the maritime industry is a digital ledger that records and facilitates safe transactions between shipping parties. 
6. EDI - Electronic Data Interchange in supply chain (EDI) is a way of exchanging documents between shipping parties in a paperless way. Documents such as orders, invoices, bills of lading, etc., can be sent online instead of printed and circulated across the globe. 

 These are a few technologies that will transform the maritime industry and take it beyond traditional shipping methods. 

LOTUS Containers is a global marketer of shipping container solutions that offers container services ranging from buying to leasing shipping containers across the globe.