This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
In 2019, we saw the rollout of some game-changing digital innovations. For example, Maersk’s Spot product is totally transforming the booking process. CMA CGM is innovating rapidly as it continues to digitize; the carrier’s SeaPriority product guarantees space and equipment to shippers who commit to fulfilling bookings.
There is no doubt that the transport and logistics industry is fundamentally changing through digitization. Shippers will certainly benefit, with the ability to pick and choose the product offerings that best fit their supply chain needs. Likewise, carriers will benefit from cost savings through process automation as well as additional revenue streams from new premium products.
However, this all presents an overarching practical challenge, especially for medium and large shippers that must coordinate thousands of shipments each year. These shippers need to carefully evaluate the pros and cons of each carrier’s new digital offering, and then adapt their systems and processes to incorporate any changes at scale. Fortunately, practical solutions are being developed.
For example, the Digital Container Standards Association (DCSA) is producing industry blueprint processes. This allows carriers to build their digital solutions in a common framework that is easier for shippers to adopt. Similarly, NYSHEX is providing a standardized set of rules for how contracts and bookings should be enforced fairly, thereby establishing a foundation that can be used by multiple carriers. For instance, CMA CGM, Maersk, and other carriers will base their enforceable contract and booking products on the NYSHEX rules. This consistency makes it far easier for shippers to understand the enforcement process, and therefore to adapt their internal procedures accordingly. At NYSHEX, we are also opening up our contract and booking monitoring system to be fully interoperable with the different carrier and shipper systems directly through APIs.