Tag Archive for: Digitisation

The challenges of digitalization and its impact on training activities in transport and logistics

Written by: Xavier Lluch i Oms, Consultant in Transportation, Logistics & Information Systems & Professor at the Escola Europea

For many years now, companies and all kind of organisations have improved their information circuits by mechanising, or computerising, etc.

Progress, so far, has been implanted inside the organisations, facilitating the transfer of information between different departments. Commercial departments, operations (transport-warehouse, etc.), and administration, among others are but some examples. In this aspect, applications have evolved from the first ones that comprised a single function (billing, accounting …) to those that seek to solve communication problems holistically for the entire company. Commonly known as “Enterprise Resource Planning” (ERP) , the different existing ERPs compete amongst themselves, but their goal is always to solve the question of information circuits inside the companies. ERPs are solving the need to re-enter data between different departments or functions of the companies above all.

There have been attempts to resolve communications between companies, but they have always been limited to specific business partners. Companies can exchange data but can hardly do so with other commercial partners in general as each connection requires specific agreements. Nevertheless, there are exceptions, such as:

  • Port Community Systems
  • Various initiatives fostered in the maritime world, especially between shipping companies and administrations, within the framework of the “maritime single window environment” (SWE).
  • Some communication subsystems such as the “Automated Identification System” (AIS) used in maritime navigation.
  • Some initiatives in the air world, thanks to IATA standards
  • The contracting platforms or loading exchanges, although each one with its own communication standards.
  • The electronic invoice, to the extent that it has been imposed by public administrations.

All these attempts have not progressed further. This was partly due to the power limitations of data management, but above all due to the lack of complete standardization; making it so that each implementation requires either a manual link or a complicated series of steps of adjusting communications.

In recent years the landscape has begun to change with the EU initiative to constitute the Data Transport and Logistics Forum (DTLF), a true standardization working group, which has set up the conditions for the promulgation of the (Electronic Freight Transport Information) eFTI regulation in 2020.

The implementation of the eFTI regulation (EU) 2020/1056/ is a significant step towards the use of digital exchanges of information in the transport sector. We may be on the verge of a radical change in communication, similar to the introduction of the ISO TC 104 standard in 1961, which opened the gate to the universal use of containers in the transport industry.

The possibility of having standards and an operational architecture within the E.U. creates an enormous playing field. We can now replace paper with the cloud to support or store transport data, and consequently we shall no longer talk about transport documents but about datasets.  At the same time, the possibility to access a much larger market database more efficiently opens infinite new possibilities to organise transports and new business models.

Electronic transport documents within the EU will become widely used and will save a lot of costs, and the increased added value in operations opens a new conception of transport flows.

ERPs will become less significant, (as we will no longer talk about invoicing or accounting programmes ). The new question will focus not on how we enter data but how we manage it.  New business models will appear, based on the possibilities of accessing large amounts of data and organising operations more efficiently.

The speed of adoption of changes depends largely on the attitude of public administrations, which set the rules of the game between companies. But the process is unstoppable and countries that do not follow them will lose competitiveness.

In a mid-to-long, term similar progress shall be extended to the full commercial chain, comprising not only those involved in the logistics or transport chain strictly, but a larger array of actors  (buyers, sellers, administrations, banks…). Technology now allows for highly innovative ways of working, but the complexity of the participants and their divergent interests greatly hinder their adoption.

These new working methods pose medium-term challenges both in the organization of companies and in the training needs of their employees.

A digital cultural background will be required in data exploitation processes. Computer security, digital signatures, data certification and protection, contracting and management of databases, organization of information, legal issues related to electronic contracting, communication systems between companies, and many more that we can now only imagine.

But even if information systems will change, the basic problems will still exist: The lost shipment, the vessel that does not sail as planned; the erroneous declaration of customs; the interpretation of trade rules; incidents of all kinds in transport; compliance with financial commitments; the fight against fraud; the increase in complexity of customs regulations; questions related to the massification of B2C trade, etc. Standardization will not solve everything and a professional transport skill will always be required.

In the next five years companies will probably start to implement some changes, in preparation for what seems a likely horizon:

  • Accentuation of sector concentration, (horizontal and vertical), accessing the large shippers.
  • Disappearance of companies due to absorption into larger groups.
  • Displacement of traditional companies towards market niches, either by transport specialities (pharmaceutical, dangerous goods, temperature controlled transport, hanging clothing, among others) or by routes or geographical areas, or by ancillary services.
  • Emergence of new companies with cloud services: Online contracting, load exchanges with complementary services, among others.
  • In customs clearance, accentuation of the changes initiated with the new customs code and with the expected ones, more centralized clearance, new roles of customs representatives, increased legislative complexity, discussion of the “trusted trader”, changes in e-commerce…
  • Emergence of the companies based on new models (such as Usyncro, Ontruck, Widoit,…)
  • Evolution of data entry solutions such as ERP.

Training activities should reflect the changes expected in the transport industry and specifically in the information flows. Training in logistics should include the foreseen technologies and tools in the training programmes, and some basic concepts in IT with which trainees should become familiar, such as electronic signatures, technologies and concepts related to information (data, metadata, protocols related, databases…), etc. IT Technologies are becoming more and more present in transport and logistics operations. However, it should not be neglected that the transport business requires to be familiarised with all “traditional” operational aspects involved with international transportation and commerce, from Incoterms to payment methods, to packaging and palletisation, customs regulation, international and national transport, insurance conventions, and so on.

The eruption of IT technologies and new and better transport means are contributing to an increase in volumes and to “commoditising” operations. Nowadays there are less uncertainties, less incidents, but it should never be forgotten that international trade is always subject to a number of legal and operational challenges and professionals should be well aware of the consequences of contracting in one way versus another. At the same time the increased volumes of international trade are originating complex problems (including customs issues) that require deeper and more significant professional skills.

Digitisation is inevitable!

And it is up to us now to ensure that we keep up with it, and that we can train our workforce with existing, new, and emerging skills to stay on top of the game.

Port Virtual Lab Expands Academic Alliances with the Fundació UAB

In a move that reinforces its commitment to promoting local and international educational collaborations, the Escola Europea – Intermodal Transport is delighted to announce a significant partnership with the Foundation of the Autonomous University of Barcelona (UAB) Foundation (Fundació UAB). This collaboration marks the company’s second agreement with a prominent Barcelona-based university, underscoring its dedication to advancing educational and research initiatives both at home and abroad.

The memorandum of understanding (MOU) signed between the two entities mirrors a successful agreement with STC Group Netherlands and with the University of Barcelona (Spain), setting the stage for an innovative approach to port logistics education.

This new educational initiative, set to commence in November 2023, offers a distinctive opportunity for participants to elevate their expertise in the field of port logistics. The backbone of this transformative endeavour is the Port Virtual Lab (PVL) training platform, which has garnered acclaim for revolutionizing education in the port logistics sector. The UAB Foundation’s esteemed reputation in academia and research further enriches this dynamic training solution.

Port Virtual Lab is an innovative and extensive platform that employs cutting-edge technology and educational resources. Functioning as an online logistics lab, it offers international trade, logistics, and transport professionals and students the opportunity to immerse themselves in realistic simulations of port operations and access a wealth of tools to enhance their skills and knowledge.

The platform encompasses 23 simulated companies within a digital port community system. Notably, it includes a pilot freight forwarder module perfected with the support of Click&Cargo, enabling near-real-life operation simulations of import and export operations. The PVL training program, now spanning nine days, includes interactive training modules and hands-on operations. Participants will be presented with realistic contracts and up-to-date information, ensuring a dynamic and immersive learning experience.

The concept of Port Virtual Lab emerged in 2020 when Escola Europea initiated a search for a software company to develop an Enterprise Resource Planning System (ERP) as the core of its virtual training model. This vision culminated in the creation of the platform that replicates a genuine port community, allowing course participants to engage in a controlled yet authentic environment and conduct simulated international trade operations.

Participants in Port Virtual Lab courses adopt various roles within the platform’s extensive range of companies, encompassing the entire supply chain. These roles span freight forwarding, shipping, airlines, road transport, railway companies, and port terminals. Plans are underway to further enrich the simulation by introducing additional supply chain actors to enhance the users’ experiences.

The significance of simulation in training endeavours cannot be overstated. Virtual simulators offer multiple advantages, including real-time practice, diverse scenarios for effective problem-solving, and the ability to test different transport combinations, prioritizing sustainability or speed as needed.

Educational offerings play a pivotal role in preparing future professionals for evolving industries. Simulators and virtual realities are key in providing hands-on experience and confidence to young jobseekers. Port Virtual Lab has been a significant leap in the development of such training tools in the Mediterranean region, and this collaboration with the Autonomous University of Barcelona Foundation marks its expansion across Europe and beyond. Notably, in a recent course, participants rated the platform with an impressive score of 4.94 out of a maximum of 5, highlighting the effectiveness of Port Virtual Lab in enhancing participants’ logistics skills.

The impact of this platform is expected to reverberate across various regions worldwide, leaving a lasting legacy long after the project’s scheduled completion in 2023.

Immersive learning

Electronic Bills of Lading

Digital documents

Lately there has been a lot of hype about electronic Bills of Lading, which is why we wanted to get back to basics and go over this innovation. So let’s get down to it:

What is the eBL?

The Electronic Bill of Lading (eBL) is an electronic version of the traditional paper-based Bill of Lading used in the shipping industry. The Bill of Lading is a legal document that serves as evidence of the contract of carriage between the shipper and the carrier, proof of ownership, and acts as a receipt for the goods being transported. In the past, it was always a paper document, but with the advancement of technology, it is now possible to issue transmit, and store it electronically.

The eBL has the potential to revolutionize the shipping industry by reducing the time and cost of handling physical documents, eliminating the risk of loss or damage to paper documents, and enabling faster and more secure transactions. However, the adoption of eBLs has been slow due to various legal, technical, and commercial challenges.

What are the challenges?

Despite their incredible potential, there are challenges that need to be addressed before eBLs can become more widely adopted in the shipping industry. One of the main challenges is the lack of standardization in the use of eBLs. There are currently multiple electronic platforms and technologies available for the issuance, transfer, and storage of eBLs, which can create confusion and inefficiencies for users.

To address this challenge, various industry associations and standards bodies, such as the International Chamber of Commerce (ICC) and the International Association of Ports and Harbors (IAPH), have developed guidelines and standards for the use of eBLs. These guidelines aim to promote standardization and interoperability between different electronic platforms and technologies.

A second big challenge is “the difficulty in converting the BL to a digital format without allowing it to be duplicatable (as without proper systems in place it could potentially be duplicated to the infinitum)” – says Jaime Paz from the Ocean Network Express. As the main function of the Bill of Lading is the condition of title of ownership, it is important to ensure that the risk of duplication is minimised or eliminated completely. Today it is possible to have unique digital titles of ownership thanks to blockchain technology, as encryption systems used are strong enough to transfer digital documents without the risk of being duplicated.  As an NFT, eBL is not only a digital file, but the registry of the ownership is implicit in it.  This way, every change in the eBL process can be registered in a blockchain, in which the information is 100% immutable and 100% auditable.

A final challenge is the resistance to change from stakeholders who are accustomed to traditional paper-based processes. Many shippers, carriers, and banks are still hesitant to adopt eBLs due to concerns about the legal validity, security, and reliability of electronic documents.

To address these concerns, industry stakeholders are working to educate and raise awareness about the benefits of eBLs and to provide training and support for users. For example, the International Group of P&I Clubs has developed a training program for its members on the use of eBLs, and various industry associations have organized workshops and seminars to promote the adoption of eBLs. The DCSA (Digital Container Shipping Association) is also working on towards end-to-end digitalisation of the shipping documentation process – having published the DCSA electronic bill of lading (eBL) standards. The goal with these is to ultimately increase transparency, enhance efficiency, and make compliance easier, therewith eliminating paper from international trade.

 

A spotlight on Europe

In recent years, there have been several developments in Europe aimed at promoting the use of eBLs. One of the most significant developments is the adoption of the UNCITRAL Model Law on Electronic Transferable Records (MLETR) by the United Nations Commission on International Trade Law (UNCITRAL) in 2017. The MLETR provides a framework for the use of electronic transferable records, including eBLs, and aims to remove legal barriers to their use.

Several European countries have already incorporated the MLETR into their domestic laws, including Denmark, Estonia, Finland, France, Greece, Italy, the Netherlands, Norway, Spain, and Switzerland. These countries have recognized eBLs as legally valid and enforceable documents, and they have established electronic platforms for the issuance, transfer, and storage of eBLs.

For example, the Port of Rotterdam in the Netherlands launched its blockchain-based platform, DELIVER, in 2019, (now Naviporta) which allows users to issue, transfer, and store eBLs. DELIVER is a joint initiative between the port authority, the municipality of Rotterdam, and various industry stakeholders, and it aims to promote the use of eBLs and other digital solutions in the logistics industry.

Additionally, there have been other developments to help the adoption of eBLs in Europe. One of those was championed by the International Group of P&I Clubs, which represents the world’s major marine insurers. They have issued guidelines for the use of eBLs in the insurance industry, which provide a framework for the issuance, transfer, and storage of eBLs, and they aim to ensure that eBLs are accepted and recognized by insurers.

Final thoughts

Despite the challenges, the adoption of eBLs in Europe is gaining momentum, driven by the potential benefits of faster, cheaper, and more secure transactions. The COVID-19 pandemic has also accelerated the shift towards digital solutions in the shipping industry, as it has highlighted the inefficiencies and vulnerabilities of traditional paper-based processes.

In conclusion, the Electronic Bill of Lading is a promising technology that has the potential to revolutionize the shipping industry by reducing costs, increasing efficiency, and improving security. While there are still challenges to be addressed, the adoption of eBLs in Europe is gaining momentum, driven by the efforts of industry stakeholders to promote standardization, raise awareness, and provide training and support for users. As the use of eBLs becomes more widespread, it is expected to bring significant benefits to the global economy by facilitating faster and more secure international trade transactions.

More reading:

Institutional panel - YEP MED Kick Off Meeting

EU-funded YEP MED project to provide employment opportunities for the Mediterranean youth

The 9th of September 2020 became the official start date of the project “Youth Employment in the Ports of the Mediterranean“, or YEP MED in short. The project, co-financed by the European Neighbourhood Instrument (ENI) of the European Union and led by the Escola Europea – Intermodal Transport (Spain), aims to develop port-logistics training and vocational (TVET) resources adapted to sector needs to strengthen youth employability; increase and upgrade local employment opportunities through the creation of real dual-learning programmes with job placements, strengthening the role of SME’s operating in the port ecosystems for future employment creation; and setting up collaborative national and transnational partnerships between port-logistics associations, operators, SMEs, training centres and VET providers, whilst introducing a public-private partnership (PPP) co-management process.

Between the 7th and the 8th of October, the project kicked off by bringing together representatives of the partner companies and stakeholders in a virtually-held international event. On the 7th of October, presidents of the participating public authorities and private entities gave their own analyses and outlooks on the logistic and transport sectors in the region. The second day of the conference was dedicated to meetings between the partners to lay down the groundwork for the months ahead.

“The digitalisation, environmental and sustainability aspects are currently a priority for all ports and port logistics communities.  Operations are also analyzed from the point of view of their impact. New generations must understand the impact of their decisions on the environment and must design sustainable logistics chains.” – Eduard Rodés, Director of the Escola Europea – Intermodal Transport

“For us you are not a common strategic project, because you are one of the best scored ever project submitted. We have very high expectations of you. It’s the first project on ports and it’s not easy to succeed. It’s impressive because you are gathering competitors and it is still a major achievement for the programme. You are here to cooperate in something so important as it is training.” – Vincent Ernoux, Coordinator of branch Office in Valencia Antena, representing the managing Authority of the ENI CBCMED Programme.

 

About YEP MED

 

YEP MED Logo

YEP MED logo

Counting with the participation of 11 partners from Spain, Italy, France, Tunisia, Lebanon, Egypt and Jordan, including public administrations such as Port de Barcelona (Spain), Autorità Portuale Mar Tirreno Centro Settentrionale (Italy), Port de Marseille-Fos (France), Damieta Port Authority (Egypt), Office de la Marine Marchande et des Ports (Tunisia), Aqaba Development Corporation (Jordan) and Chamber of Commerce, Industry and Agriculture of Beirut (Lebanon), as well as training centres in each of the countries such as the Escola Europea – Intermodal Transport and Fundación Valenciaport (Spain),  Arab Academy (Egypt) and Institut Méditerranéen de Formation aux Métiers Maritimes (Tunisia), the project will strengthen the networks between the different countries and build the young employment sector across the Mediterranean basin. Associated entities, such as MEDPorts Association and Consell Valencià de la Joventut will also join the project.

YEP MED project was approved under the ENI CBC MED Programme call for strategic projects in 2019. It is 90% co-financed by the European Union funds, and will receive 2.9 M€ throughout its 30-month duration. During the project implementation phase, the partners and associates of the project will create virtual courses and carry out trainings for both trainers and trainees, while at the same time creating a stable network that will ensure that the training continues after the end of the project, ensuring equal opportunities for women and for young people in the years to come. For more information, you can contact Concha Palacios at the project office, citing YEP MED in the subject line.

 

*This document has been produced with the financial assistance of the European Union under the ENI CBC Mediterranean Sea Basin Programme. The contents of this document are the sole responsibility of the Escola Europea – Intermodal Transport, and can under no circumstances be regarded as reflecting the position of the European Union or the Programme management structures. 

Innovation and Digitisation

Innovation and digitisation post Covid-19

As we enter a new era in the Escola’s development and begin to work on our new project YEPMED, which aims to ameliorate the labour situation for young people across the Mediterranean, we have caught up with Anwar Zibaoui to share his thoughts on the importance of collaboration and sharing of know how in the era of the 4th industrial revolution, and the digitisation and innovation that come with it. Check out the full article below. 

The YEPMED Project aims to better match the labour market skills needs and dual TVET offer in the Mediterranean Port communities sector in order to contribute to jobs creation and productive economic growth. 

 

Anwar Zibaoui

Anwar Zibaoui, chairman of ACASME and founder of AZ Meda Advisors & Consulting

Twelve years after the world financial crisis sent the economies of the developed and developing world into disarray, we are once again facing an unknown situation. An unprecedented tsunami that has confined millions of people to their homes, shaken the stock markets, forced countless businesses to close, including local markets and restaurants and emptied our streets, paralyzing our economies. Historical precedents tell us that such a situation could significantly alter political and economic systems, reconfigure ideas and theories, and impose radical changes to our lifestyles.

In this case, the unexpected allies have been innovation and digital technology, which helped alleviate the impact of COVID-19 on individuals, businesses and governments. In the midst of the chaos, a new era set in the digital world is emerging, and with it creating new opportunities. Nevertheless the benefits of technology are not equally distributed, as more than 3.6 billion people on the planet still do not have access to the Internet. In the informal economy, teleworking does not exist. For millions of children, access to online education is a remote dream.

It is time to coordinate our reaction to the new challenges, because innovation and digitalisation are here to stay. Their implementation has accelerated exponentially and there is no turning back now. It has changed the way we work, learn, buy or socialise. We must be prepared for the so-called new normality.

Never before has the digital agenda been as necessary and vital as it is now. It is not only an immediate response to the measures taken to combat the virus, but it is also indispensable to research and innovation. The current economic models are breathless because of the speed of change. We are in the era of globalisation, climate change, pandemics, digital transformation, the collaborative economy, urban concentration and the depopulation of the rural world. All of these represent many changes that governments all across the globe are struggling to regulate. However, these also highlight new divergences and polarizations between economies and societies. This is why new responses are needed.

There is no doubt that technological change threatens jobs, but it can also create alternatives. Relations at work, between companies, employees, services, mobility… are evolving. The only key to progress is to improve innovation and education. As in everything else, the future of Europe, Africa and the Mediterranean lies in adapting, sharing experiences and moving forward together.

Following the current model, Mediterranean governments are focusing on job creation rather than on business creation. This is an outdated model that consists of launching massive public employment programmes instead of financing and investing in successful businesses that create jobs. It is clear that economic progress is directly related to training, research and innovation activities, and that there is a correlation between social progress and business activities.

The life cycle of companies should demonstrate to many countries that the secret of eternal youth is constant innovation. Governments need to balance expenditures and invest in tangible infrastructure such as roads, railways or ports. However, they must also invest in intangibles such as education, research and development. R&D is the key driver for building and consolidating a knowledge economy and implementing a culture of creativity in which young people are inspired, transform their ideas, raise their ambitions and pursue their dreams.

Entrepreneurship and the private sector can drive adaptation to technology and innovation, be the vehicle to engage young people and move forward. We must promote a new mental framework, a new attitude, harnessing the energy of young people, and fresh ideas, because these are the ones that bring opportunities. Innovation is a lever for value creation because it transforms the way we do business and has a multiplier effect on the growth of a nation and its companies.

Innovation is the way to growth and survival. It is the model for the promotion of a company or a country. Technology is already here, but by itself it is not the answer. It is a facilitator and accelerator of new ways of being and doing. To be able to create wealth and ensure a future, innovation is not an option, it is a necessity.

The Mediterranean region will have to create hundreds of millions of new jobs over the next three decades. This challenge presents an opportunity for the region to transform its economies and harness the creativity of its large youth population and the disruptive power of technology to create wealth.

Whether we like it or not, production lines will require less and less manpower thanks to more efficient machines, automation and robotics. In addition, the next wave will bring more artificial intelligence, 3D printing and new capabilities that will make additional manual labour redundant. We already know that 8 out of 10 jobs will be lost due to new technologies (not immigration or globalization), that 64% of the jobs that exist today will be automated, and that 66% of the jobs for the next 10 years have not yet been invented.

The transition to the fourth industrial revolution, combined with a crisis of governance, makes it imperative to thoroughly reconsider human capital and adapt education to the labour market in order to achieve prosperity and stability. New digital technologies generate a new competitiveness that, for the moment, does not apply to many Mediterranean countries. For the region, a successful transition would guarantee business competitiveness and be a determining factor for regional industrial consolidation. Doing nothing is a risk of negative impact on its future growth and productivity.

In our region, the most immediate economic challenge is not diversification or new tax regimes, but the creation of productive and sustainable jobs for the youth. At the same time, we must be equipped with the combination of talents and skills that will make industry 4.0 a generator of wealth and social peace. We must be concerned about the level of training of the workforce and its quantitative and qualitative nature. The factors that today allow us to better evaluate it are the development of the digital culture, the skills and the capacity to think creatively.

The region has an enormous human capital waiting to be developed. Education, the promotion of the private sector and an understanding of this technological revolution will be key ingredients for success. This is a complex task that will require a broad social consensus and determined action by governments.

The digital potential is unlimited. This represents an opportunity for the Mediterranean. A large market with rapid growth. A hub of innovation, creativity and entrepreneurship. Young people have the resources to find solutions to pressing problems.

Leaving the Mediterranean behind in the digital transformation is not an option. The pace of the fourth industrial revolution will wait for no one. As the United States and Asia move forward, Europe and the Mediterranean need to forge their own identity. Today the imbalance is obvious, and everything that prevents an improvement in innovative capacity is conditioning the future.

The main key to innovation is training. Companies that invest in their employees to provide them with the right knowledge are the ones that grow. Governments must do the same, improving qualifications and promoting innovation in all key sectors of the economy and in the education system. If they stop betting on the education of the new generations, they will condemn them to depend on others for life.

There is a great need for a new platform of collaboration that brings together governments with businesses and other actors interested in public-private cooperation in the Mediterranean, facilitating a progressive dialogue that understands and respects the values and culture of the region. Investment in young people is needed to unlock the demographic dividend in an area where the interests of governments, the private sector and international organizations are fully aligned. This requires joint action by all today, to ensure a prosperous region tomorrow.

This crisis will pass, but we must not forget that innovation and digitalisation are the path to survival and development, the fuel for constant progress and the model for the rise of a company, a nation or a region.

Article published in its original form can be found here.

Digital highway

Digitisation in logistics and e-documents… advantage or cost?

The current crisis is bringing with it a lot of changes to our industry. For this quarter’s Blue Innovation article, we have caught up with Xavier Lluch, an expert in cost analysis, a veteran of the logistics industry and a regular teacher in our courses, to share with us his thoughts on the emerging trend of e-documents and electronic transport processes. Check out the full article below: 

 

Xavier Lluch

Xavier Lluch i Oms
Professor of the Escola Europea – Intermodal transport
Consultant for Spain for Pionira BV, experts in generic solutions for digital document signing.

The digital revolution is here and was here long before the virus crisis. Perhaps the current crisis allows us to rethink the way we have approached logistics and transport activities so far. The opportunities offered by the new ITC technologies are already changing the way we do business. In the transportation and logistics industry, we now have powerful tools at our disposal to improve the competitiveness of our companies and the range of services offered.

Nevertheless, the implementation of these technologies could be faster than it is currently. For many reasons, but especially because it requires a different approach to the way we do business, a profound cultural change among managers and employees in this sector is necessary. Some business models may make way for new ones.

Are we – are you – ready to take on this challenge? The answer to the question can affect the design of the businesses on offer.

The use of e-documents requires the use of a third party – service providers who are replacing paper in the retention of information and signatures in transport documents with electronic counterparts and with great benefits. You can enjoy other benefits such as attaching images, videos, or other documents with a simple click, avoiding physical contact at the time of signatures, geolocating events… among others. This will save some money, especially from the administration side of any business dealings!

In intermodal transport, it will be possible to use a single document between the first shipper and his consignee, avoiding the traditional ways of having documents physically transferred between different carriers.

But this is only the beginning because when you start using e-documents, you will quickly stop talking about “documents” and instead use the expression “datasets” or “transport datasets”. When you have this information structured in a database that is accessible online and in real-time, there will be a full portfolio of new applications and benefits available, and from this point on you will start not only to save money but to design a new approach to your service concept.

Over the past three years, I have helped a Belgian company, PIONIRA BV, to introduce their solution for digitally signing transport documents in the Spanish market. On their web page (www.pionira.be), you will not find the usual software solutions for printing transport documents, but information about a company that can “offer a generic solution for digitally signing documents”.

It is important to realise the change in the way the company presents their offer because this is much more than a simple reformulation. Pionira offers a new service to connect with existing ERP solutions, linked to the many improvements that digitisation should bring to the logistics and transportation activity.

The solutions exist, they are tested, they do not require any investment and they can easily be connected to other existing apps.

The legal framework is clear for the use of electronic documents in transport. International treaties and national legislation have adapted their processes with a goal to facilitate and promote the use of electronic documents. This past August, the European Parliament approved a new rule that legalised them for all EU countries.

The approval of this European regulation sets the basis for the wide implementation of digital documents across both private and public sectors, by establishing the data and messaging standards as well as the conditions for the interoperability among the different players. In the short term it becomes mandatory for the public sector and voluntary for the private operators, and in a few years it might become mandatory for all. For more information you can check out the Regulation EU 2020/1056 of the European Parliament and of the Council on electronic freight transport information.

Significant companies (shippers, transporters) in Europe are already implementing e-transport documents. Some of the public administrations, mainly in the Benelux countries, have already been active in promoting the benefits of such technologies.

More recently, the main stakeholder’s associations in Spain have reached a compromise, with the acknowledgement of the Ministry of Transport, to promote the use of e-documents. The promotional campaign is expected to continue through September.

Digitisation is in the forefront of the intentions of many private and public policies, especially in the backdrop of the COVID-19 crisis, as e-signing transport documents foregoes any physical contact and therefore minimises the risk of virus transmission. A few days ago “The Economist” published an article titled “Covid-19 stimulates the digitisation of the government” – further highlighting the impact of the changes kickstarted by the pandemic.

We must recognise that one of the obstacles is the lack of a “digital culture” among many of us. The earlier we shorten that gap, the better it will be for the efficiency of our companies and the possibility for all to catch up with the coming changes in the transportation industry across the globe.