This is an exciting time to be in the shipping industry as it nears a tipping point long coming. With global shipping volumes forecast to double by 2030, there is a need for greater scale, agility and efficiency throughout the supply chain. Those who have invested in technology will be in a prime position to optimize their execution by harnessing an invaluable asset — their data. Today, I see an industry separating into those who have already begun investing heavily in technology, and those who wished they had.
Three trends will drive transformative change in shipping in 2015. The first is digitalization. We have an unprecedented amount of information generated from every participant in a supply chain — and increasing abilities to leverage that data for greater insight. Those who have embraced automation technologies will be best positioned to maximize the quality of their data and the benefits driven through its digitization.
Second is interoperability. Through investments in new systems that communicate with each other and share information needed to react in time, businesses can add flexibility to the delivery process and provide shipment information that customers want.
The third trend driving change is the need to remove cost from the transportation of goods. This is being achieved by ocean carrier consolidation, but not purely through acquisition. Rather, carriers are expanding collaboration beyond vessel-sharing agreements and using technology such as control tower platforms to provide interoperability and tightly synchronize supply and demand.
My experience in financial services allowed me to participate in that industry’s technology revolution. Similarly, the shipping industry shows signs of transformation. Much of the technology developed in the last decade has been concentrated within a company’s four walls and not on connecting companies. I expect technology platforms will narrow as investment becomes outward-facing, with new cloud platforms becoming great equalizers, allowing participants of unequal technology development to share the same systems as those previously available to a few.
As we reach the industry’s tipping point, and demand grows beyond the average company’s ability to handle it efficiently, expect new prominence for those who have prepared through strategic technology investments and use of platforms that connect the industry.
John F. Fay, CEO, INTTRA