Smart Shipping #1: Shaping the future with Shipping Company 4.0
Lufthansa Industry Solutions (LHIND) unveils how data transforms seafaring into a competitive powerhouse. In this chapter, we embark on a journey through the digital landscape of shipping, where data is more than just numbers — it’s the catalyst for innovation, efficiency, sustainability, and new business paradigms.
In this section of our blog, we focus on what digitalization entails in concrete terms. For this purpose, we will guide you through three key aspects. Firstly, we present the basic concept of our digitization approach. Secondly, we discuss the six challenges addressed in the previous section in the light of digital solutions. Finally, we highlight the further development of digitalization and its goals — encompassing the holistic approach, standardization processes, new business models, and sustainability requirements.
Where do we currently stand? The shipping company has continuously evolved throughout time. With the use of electricity, engines, and modern containers, the evolution to Shipping Company 2.0 took place. The introduction of computers and the first steps towards digitalization have paved the way for Shipping Company 3.0. With Shipping Company 4.0, the next evolutionary step moves towards end-to-end digitalized processes that are combined with Office 4.0 ashore and Shipping 4.0 at sea.
Today, customers of shipping companies expect comprehensive and digital services. They are not interested in the technical processes of transportation. They want to ensure that their goods are safe and delivered on time, with tracking abilities along the entire route. Moreover, CO2 emissions should be measurable at a low level. In short: transportation should run smoothly and efficiently.
The concept of full digitalization is at the heart of smart shipping solutions. The digitalization of the entire value chain enables shipping companies to control and manage all business areas, while meeting their customers’ expectations with flexibility in an increasingly volatile market.
Join us as we dive deeper into the essence of Smart Shipping and how Lufthansa Industry Solutions is shaping the digital transformation in the maritime world.
I. Digitization: Data as fuel for a competitive advantage
In the next few years, digitalization will prove to be a key competitive advantage, especially where technology and platform-driven entrants are entering the industry and putting pressure on incumbents with their digital expertise.
End-to-end digitalization not only extends from the first customer contact to transport and delivery, but also covers all other control and support processes within the organization. This requires the central and systematic collection of relevant data for this end-to-end view. With increasing digitalization, various data is being created more rapidly. It can be used for customer loyalty, product development or brand-new business models.
Shipping Company 4.0 uses all the collected data and protects it in the most efficient way possible. This data is an essential part when using innovative technologies such as artificial intelligence, machine learning, big data, and predictive analytics to optimize existing processes and develop new business models.
The digital collection of data and its intelligent use does not end in the office buildings of shipping companies but encompasses the entire supply chain. Among the important drivers is the Internet of Things (IoT). The technology is advanced while the devices are cheap to produce, reliable and powerful. For example, sensors on containers, ships and unloading facilities, combined with satellite technology, enable real-time monitoring of freight traffic. Individual shipping companies have already equipped their containers accordingly, although the development has gone even further.
One example is the Smart Label Tracking Device. The localization solution with a printed battery is only two millimeters thick and transmits data about the location and temperature to a middleware platform, which is forwarded to the logistics center. This allows valuable goods to be tracked; the location of the goods is reported when they are in a container, even if they leave it and continue their transport in a truck, for example. The system then automatically updates as soon as a delivery reaches or leaves previously defined points.
IoT and its smart networking open up many more areas of application. For example, the intelligent evaluation of weather data can optimize route planning and “smart port” approaches (“just in time arrival” of ships at the terminal) and avoid traffic jams at ports by actively preparing the arrival at the terminal based on the data and calculating the “best” time.
Ships and their operation can also be monitored remotely, and important data can be transmitted in advance on site for maintenance and repair, saving on costs such as fuel, contributing to CO2 reduction.
If shipping operations are synchronized with road and rail transport, the foundations of a comprehensive smart shipping solution will take shape. This necessitates the incorporation of contemporary technologies for seamless data exchange, encompassing communication via satellites, 5G, and a cloud-based data infrastructure, along with the establishment of standardized processes.
The ensuing future envisions autonomous ships and fully automated business models. It is evident that Shipping Company 4.0 thrives on teamwork and relies on collaborative partnerships. Drawing inspiration from our experiences in aviation, numerous aspects of digitalisation have already found implementation, particularly in the B2C sector. Whether addressing logistics supply chains, operational processes, or empty container management, the similarities between the two industries allow for seamless adaptation of digitalisation principles to the shipping domain with minor adjustments.
As we conclude this chapter, we have navigated through the pivotal role of data in shaping the future of the maritime industry. We’ve explored how digitization is not merely a passing trend but a crucial driver, providing the necessary impetus for a competitive edge in the rapidly evolving world of shipping. The transformative journey of Shipping Company 4.0 has only just commenced, and the potential is as boundless as the seas themselves.
Looking ahead, we shift our focus to the skies, seeking insights from the aviation sector. In the upcoming chapter, titled ‘How Shipping Companies Benefit from the Experience in the Aviation Sector,’ we will delve into the lessons gleaned from aviation and examine how they can be applied to the maritime realm. Throughout this exploration, we will introduce digital solutions addressing the six central challenges of the shipping industry, thus advancing our vision for Shipping Company 4.0.
