Tag Archive for: innovative transport

Image of Container 42

Blue Innovation – Container 42

Following a nice and (hopefully for all of you) relaxing summer, we have begun thinking again about innovation it the Blue Economy and any novelties that would be worth highlighting. For this issue of the Odiseo we have decided to revisit the container (following our article on the SmartBox), and decided to explore Container 42.

Digitisation and technology continue to make headlines with increasing frequency in a classic sector that seeks to optimize its performance, no longer focusing on gigantism but thinking about improved processes and relying on new technological proposals.

The newest challenge is to mesh data and processes together to obtain more efficient operations, sustainability and better services.

Under the initial joint venture of IBM, Cisco, Esri, Axians and the Port of Rotterdam, today there are 18 companies (see the full list at https://weare42.io/partners/) that have joined to create Container 42, a research and technologically innovative project that seeks to increase the safety, sustainability and efficiency of container movement. Under the premise of knowing what a cargo container experiences during intermodal journeys, Container 42 is a hyperintelligent tool that registers everything and is adapted with sensor technology that transmits, in real time, information pertaining to vibrations, pitch, noise, air pollution, humidity, internal and external temperature, internal movement of the cargo and the exact global position of the container. In addition, the container has been equipped with solar panels on its top cover to measure the amount of energy that can be produced, as well as with 42 cameras that record the movements of and surrounding the unit.

Source: https://weare42.io/data/

The premise is that all this data is to be collected, and will yield positive results to make sure that the different actors involved in the operation of the container can measure parameters, optimize processes, improve the quality of services and be more efficient with the environment.

Currently the plan is for Container 42 to do a 2 years long intermodal journey in order to do carry out accurate analyses within the routine of a regular container. The official launching was at Rotterdam on May 24, 2019, and it has left to Munich for the International Transport Logistic exhibition to begin the journey right after the event.

This system installed on the Container has the potential to outperform the authorities along its journeys, as it is programmed to set off alarms when the parameters of the container are changed or its doors are opened. It also helps to optimize logistic chains by constantly updating data, which would allow to diminish (or eliminate completely) uncertain predictions or to visually verify the cargo in real time.

With such thorough tracking and control, it leaves those involved with the container and the cargo with nearly absolute certainty and security. Moreover, beyond the container’s contribution to the logistics chain and the possibility of linking its operations with blockchain, in the event that any incident with the unit is recorded, thanks to a precision of information, it would be much easier to troubleshoot incidents and be aware of all of the risks or breakdowns. On the other hand, the container could also be part of an integral customs self-management system, as with all of the information digitalised, the cargo data can be transferred for faster customs management, and eliminate inspections of containers that are digitally guaranteed not to be opened.

Source: https://shippingandfreightresource.com/container-42-smartest-container-on-the-planet/

The first step in this initiative has been taken. Knowing what happens to a container during its voyage will soon cease to be an uncertainty (although some shipping companies already have limited monitoring and security services among others for the cargo they transport). However, it must be recognized that digitising each unit will take time due to the investment and motivation that the carriers would need to take the necessary steps to implement the technology. Even so, in a world where we know exactly the position of our food delivery biker, how strange is it that we do not know precisely the condition and position of goods valued in thousands of dollars?

Written by:

  • Vanessa Bexiga, Operations Manager (Escola Europea – Intermodal Transport)

Improving Ocean Shipping: Blockchain Reaction

Blockchain technology is capturing interest across the supply chain, and the maritime industry is no exception. Nine ocean carriers and terminal operators are so interested that they recently formed a consortium to develop the Global Shipping Business Network (GSBN), an open digital platform based on distributed ledger technology.

Participants in the consortium include CMA CGM, COSCO Shipping Lines, Evergreen Marine, OOCL, and Yang Ming as well as terminal operators DP World, Hutchison Ports, PSA International Ltd., and Shanghai International Port.

“The new platform, an ecosystem for the shipping community, will connect all shareholders including ocean carriers, terminal operators, customs authorities, shippers, and logistics providers to realize collaborative innovation and digital transformation in the supply chain,” according to a Yang Ming spokesman.

These goals are similar to the expectations expressed by Maersk and Kuehne + Nagel, early adopters of blockchain technology.

In January 2018, A. P. Moller-Maersk and IBM announced plans to pursue blockchain solutions. Then in August 2018, the two companies collaborated to create TradeLens, a blockchain-enabled shipping solution.

Ninety-four organizations are actively involved or have agreed to participate in the TradeLens ecosystem, including 20 port and terminal operators accounting for approximately 234 marine gateways worldwide, Additionally, customs authorities, freight forwarders, and beneficial cargo owners (BCOs) have joined.

Freight forwarder Kuehne + Nagel participates in a blockchain consortium consisting of consultancy Accenture, ocean carrier APL, and shipper AB InBev.

In its most basic form, blockchain is “shared ledger technology” enabling a single, shared, tamper-proof ledger, according to IBM. Once recorded, transactions cannot be altered. Anticipated benefits include less paper processing, increased transaction time speed, and improved efficiencies.

Although it is often used as a single technology, there are two different types of blockchain: public and private. Some of the most commonly known public blockchains are the cryptocurrency ones used for bitcoin transactions. Because these are completely transparent, participants are concerned about dealing with sensitive information, such as commercial contracts.

CARING ABOUT SHARING

Sharing the exact details of contracts and transactions is problematic for freight forwarders, ocean carriers, and shippers. These various stakeholders may collaborate with each other, but not with their competitors. This level of transparency may be an issue with supply chain strategy increasingly becoming a competitive advantage for companies and freight forwarders seeking differentiation in a crowded and fragmented market.

While a consistent wave of ocean carrier consolidation has occurred in the past few years, the remaining players still compete for volume. Empty containers do not generate revenue.

Private blockchains allow users different permission levels, so access can be restricted, and information can be encrypted to adapt to users’ needs.

Transporting goods internationally can become complex, both in terms of physical distribution and cross-border data exchange. Documents related to hazardous cargo, invoicing, cargo release, and other required customs information are vital to the actual movement of goods.

One missing or inaccurate form can keep freight from being delivered. Unlike domestic U.S.-based transportation, global shippers cannot immediately contact a provider and have a new truck dispatched within moments or hours to avert the supply chain implications of a missed or delayed delivery.

One reason the maritime industry is embracing blockchain is to “reform document processes of shipping management,” says a Yang Ming spokesman. The first prototype of GSBN allows shippers to digitize their documents and proceed to automatically exchange data with relevant supply chain parties. This simplifies the complicated documentation process and expedites the delivery of goods.

THE BUSINESS CASE

“Blockchain might not be able to solve, cure, or save everything as the hype suggests, but there are certainly applications where the business case makes sense,” says Adrian Gonzalez, president of Adelante SCM and a supply chain technology analyst. “It makes sense in global trade because of the many different parties, documents, regulations, and financial transactions involved.”

HOW BLOCKCHAIN IS USED IN OCEAN FREIGHT

Kuehne + Nagel’s first blockchain activities date back to 2016, when the concept received board-level support and it began case identification workshop.

“Our approach is to work with customers and business partners on real-world use cases in open and collaborative consortia,” says Inge Ole Ottemoller, senior IT https://www.inboundlogistics.com/cms/article/improving-ocean-shipping-blockchain-reaction/consultant and blockchain expert for Kuehne + Nagel. “Using new technologies such as blockchain is an element of business strategy to continuously improve our processes as well as the business model.”

Fast forward to 2019, and Kuehne + Nagel states there is much work still to be done to achieve the promise of blockchain technology. “Blockchain has the potential to enable further digitalization of existing processes,” Ottemoller notes. “But the technology is still at a very early stage.” .

“With the experience already gained, the technology used at the present time does not yet have the maturity for productive use in extensive, complex applications,” he adds. “In particular, the requirements for maintainability and automated operation are hardly met.”

However, some successes have come from its blockchain consortium, which has focused on one central document in ocean freight: the bill of lading. “The consortium already developed a proof-of-concept for an electronic bill of lading use case from export and import to a common blockchain-based ledger,” reports Kuehne + Nagel.

This group effort “demonstrated how the application of blockchain for issuing and exchanging bills of lading can unleash huge efficiencies for the industry due to seamless and tamper-proof data integration,” says Ottemoller. “The need for printed shipping documents is rendered obsolete.”

Maersk also reports benefits from its adoption of blockchain technology, and specifically, the TradeLens application.

The platform has captured more than 154 million shipping events, including arrival times of vessels and container “gate-in,” and documents such as customs releases, commercial invoices, and bills of lading. In the past, Electronic Data Interchange (EDI) systems shared some of this data in the supply chain.

The TradeLens platform has already proven to be effective. One example Maersk reports is a 40 percent reduction in transit times to ship packaging materials to a production line, avoiding thousands of dollars in costs.

The GSBN consortium hopes to achieve these types of real-world supply chain enhancements. “We are always willing to try innovative technologies to keep up with the digital transformation of the shipping industry in collaboration with others,” says a Yang Ming spokesman.

NEW KIDS ON THE BLOCKCHAIN

The blockchain “revolution” has also lured new players to the market, such as CargoX, a company that created a neutral, open, independent platform available to ocean carriers and other stakeholders. While other consortiums may be limited in the ability to expand or onboard new carriers, “Our platform solves these issues, as it is based on a neutral, open, public Ethereum blockchain network,” notes Stefan Kukman, founder and CEO of CargoX.

Although public, the CargoX platform is secure because the transparency it provides, “only relates to the transparency of time-stamps of certain transactions,” Kukman says. “What is being translated is completely invisible, as the content of the documents and data fields is encrypted and secured from unauthorized viewing.”

Recently, CargoX customer ShipChain completed a successful blockchain-based pilot shipping initiative with Perdue Farms. During the pilot, ShipChain tracked Perdue fleet data and recorded it in the Ethereum blockchain.

Early adopters such as Kuehne + Nagel remain optimistic about the future of blockchain and the maritime industry. The freight forwarder is using the application in the areas of workflow, trade finance, provenance, and visibility.

THE RIGHT DIRECTION

“The development points in the right direction, so it can be assumed that the technology will reach the required level of maturity in the future,” says Ottemoller. “Thanks to the project experience already gained, Kuehne + Nagel is in a position to have an educated judgement on the state of play for this new technology.”

The many companies adopting blockchain platforms share a common vision of the technology’s benefits to the supply chain, and the ocean freight sector specifically. These include:

  • Reduced paper-based processes
  • Reduced waiting time
  • Faster transit times
  • Transparency across processes and company boundaries

QUESTIONS AND MORE QUESTIONS

As additional new entities enter the same space with unique platforms, however, reaching these goals may be a challenge for shippers.

With providers ranging from ocean carriers to freight forwarders to software companies offering different options for blockchain platforms and consortiums, how does a shipper that does not want to work with only one provider deal with the challenge of enabling integration and interoperability between those platforms? With multiple groups working to establish global shipping standards, which standards will ultimately benefit shippers most?

Gonzalez also raises another area of potential concern: Can any technology, new or dated, overcome bad data? “It’s important to note that blockchain doesn’t erase the fact that supply chains still suffer from crappy data,” Gonzalez cautions. “It doesn’t erase the integration challenge of aggregating, cleansing, and linking together data that is spread out across many different applications.

“Some were built in the 1970s, across many companies and countries, some with limited or no IT capabilities and stored in many different formats, including email and faxes,” he adds. “In short, blockchain by itself does not solve the problem of ‘garbage in, garbage out’ data quality problems, but it is a distributed ledger that is better encrypted and traceable.”

DIGITALIZATION AGENDA

Other issues beyond the scope of blockchain alone need to be resolved to improve efficiency in the ocean freight industry. “Digitalization and blockchain are not synonyms,” notes Kukman. “They are tightly connected because the shipping industry is lagging behind in its digital processing.

“But blockchain implementation is just a part of the whole digitalization agenda,” he adds. “And digitalization as such is inevitable—it is time that the paper processing machinery is transformed into modern, trustworthy digital solutions.”

Whether using a CargoX platform or another application for blockchain, the ocean freight industry must embrace technology to “deal with the problems that arise from the snail’s pace of transferring paper documents,” Kukman states. Paper documents can be damaged, lost, or even forged or stolen.

“Those ocean carriers that don’t embrace digitalization will start losing their market share,” predicts Kukman. “Global trade relies on digital data and new services, and this reliance will just get stronger. The carriers that decide to adopt blockchain know what the advantages are.”

End customers will have the greatest benefit in knowing where existing documents, transactions and goods are located, as well as whose turn it is to make the next step in the process,” Kukman adds.

Additional benefits for end users are likely to be realized in the area of forecasting. “The CargoX platform provides new ways of analyzing past business events to support forecasting loads and volume, identifying throughput bottlenecks, and other issues,” Kukman says.

One of the biggest impediments to blockchain and other forms of digitalization is the fact that many companies still rely on paper processes because “that’s the way it has always been done.” That kind of thinking is what will determine winners from losers in the future because, says Kukman, “We don’t ride horses for transportation anymore, do we?”

Source: Inbound Logistics

Blue Innovation – Drones in Port Operations

Let’s talk about Remotely Piloted Aircrafts (RPAs) or Unmanned Aircraft Systems (UAS)! These unmanned aerial vehicles, commonly known as drones, have already been incorporated into our society for their flawless ability to take exceptional videos and photographs. Nevertheless, global transport and logistics companies are looking to take advantage of their functionalities and the shipping industry is not lagging behind.

Within the contributions that an RPA can already offer to transport operations we have:

  • Inspections of physical structures and patrolling of security rounds;
  • Routine inspections for maintenance of buoys, pipes, docks, breakwater cranes, roof-ships and other structures that are conventionally difficult to access;
  • Stock measurement to calculate (bulk) volumetric mass inventory;
  • Detection of irregular situations, leaks or abnormalities through (thermal and gas) sensors, as supplemental emergency support without the need to expose people to the affected areas;
  • Measurement and control of environmental aspects, detection of contamination and tracking and monitoring those responsible for the environmental breaches;
  • Mapping and surveying;
  • Generating audio-visual records of inspection for the authorities or for historical archives;
  • Among others.

The truth is that RPAs have many positive functions to bring to the port community. It is necessary to recognise that not all functions of these high tech devices are positive, and therefore an airspace overflight control would need to be established and regulated. Ports like Rotterdam, Hamburg or Antwerp have already begun regulating the use of RPAs, and allow for their use in certain operations or for inspections under previously established regulations or approvals. The port of Amsterdam has recently tested the Marine Anti Drone Systems (M.A.D.S). This system gives the port authority the possibility to try to control and protect the airspace in order to avoid violations of private security, terrorist attacks and fly-hacking, among others. It is vital, when taking advantage of these devices, to take security and other potentially negative repercussions under consideration.

One of the most interesting commercial cases of the use of RPAs in port areas cases has to do with the service of the company Willensem in Singapore. The company has been able to obtain test authorisation for an “Agency by Air” with which they intend to supply ships with small spare parts, documents, supplies or even consumables for 3D printers. This system will replace shipments by boat in order to reduce economic costs, lower pollution, and ensure faster and risk-free trans-shipment-delivery.

Similarly Airbotics, a company of Israeli origin, has incorporated the devides into a wide range of services. Some of those are applied to the maritime sector where they control traffic and monitoring in port, and undertake supervision on environmental and health issues, inspection systems and inventory tracking. Together they are supporting the construction of the port project in Haifa through mapping and inspection.

In Chile, APM Terminal works with drones for general supervision operations and risk detention. Their devices have a loudspeaker built into the RPAs, allowing the operator to give directions to truck drivers or other people on the ground.

As a final example we could mention the Balearic Islands Port Authority (APB), which has initiated a pilot programme to control and manage the public port domain by using drones in the port of Alcúdia to supervise port operations and environmental control. Currently they perform a weekly flight operated by a specialized company that provides a video and 750 orthophotos.
When it comes to RPAs and UASs, the possibilities for the shipping industry are endless. Companies have only touched on the surface of the possible applications that could be implemented to maximise productivity of the ports, enforce sustainable regulations within the port borders, and improve overall security. As with all new technologies, however, this comes with additional costs and ethical and security considerations. Ports would need to ensure a risk-free airspace for the drone operations to be successful, and if surveillance is involved, that all parties entering or leaving the port are informed of it. The ports we have listed have already taken a first step towards this incredibly exciting future – and we do not need to wait long for the rest of the world to showcase their applications.

For more information you can go to:

 

Written by:

  • Vanessa Bexiga, Operations Manager (Escola Europea – Intermodal Transport)