In the next few decades, we will undoubtedly be witnessing a significant transformation in the way ships navigate, driven by the rapid advancement of digitisation and automation within the maritime industry. Each day sees the adoption of novel technologies and solutions aimed at enhancing operational efficiency and bolstering competitiveness.
Given that, globally, about 90% of traded cargo is being transported via maritime routes, the incorporation of digital advancements becomes paramount in effectively managing such vast volumes.
Looking ahead to 2050, the pace of technological innovation and emerging trends is expected to quicken, resulting in the development of an entirely new approach of ocean transportation infrastructure vastly distinct from the current model(s).
Valued at $157 billion in 2021, and projected to exceed $200 billion by the conclusion of 2024, the maritime digitisation market is poised for accelerated growth. Forecasts indicate a remarkable escalation to approximately $298 billion by 2028, as outlined in the Maritime Digitization Global Market Report 2024. Other sources (AMR) even estimate it to reach $423 billion by 2031, highlighting a staggering CAGR of 10,7% from 2022 to 2031.
This growth can be attributed to the coincidence of multiple and mutually reinforcing developments:
- Environmental monitoring (decarbonisation) and compliance
- Escalating demands for real-time monitoring of assets
- Advancements in IoT and AI technologies
- Stepwise adoption of autonomous technologies
- Bolstered cybersecurity after global attacks
- Gradual introduction of LEO satellite communication
Of particular note is the growing emphasis on the use and value of trusted data in the deep-sea shipping industry. This involves ensuring the integrity, accuracy, and security of data collected from various sources, including IoT sensors, maritime databases, and third-party providers. Reliable data is crucial for making informed decisions, managing risks, and maintaining regulatory compliance.
Relying on trusted data in ocean shipping and the maritime industry offers several significant benefits:
- Improved Operational Efficiency: Reliable data helps streamline operations by providing insights into vessel performance, fuel consumption, cargo handling, and port operations;
- Voyage Planning: Planning a successful voyage is all about predicting crucial factors. Comprehensive information (data) is essential for efficient vessel operations: ship operators can plan and execute successful voyages while adhering to regulations, controlling costs and ensuring the safety of their vessels and crew;
- Enhanced Safety and Security: Trusted data ensures that accurate information is available regarding vessel locations, weather conditions, navigation routes, and potential hazards. This enables better decision-making, leading to improved safety and security for vessels, crew, and cargo;
- Environmental Sustainability: Accurate data allows companies to monitor and optimize fuel consumption, emissions, and other environmental impact. By adopting data-driven practices, companies can reduce their carbon footprint and contribute to sustainable shipping objectives and practices.
- Regulatory Compliance: Accurate data is essential for complying with international maritime regulations and standards. By ensuring data integrity, companies can avoid penalties, fines, and legal complications associated with non-compliance;
- Risk Mitigation: Trusted data supports better risk assessment and management by identifying in advance potential threats such as collisions, adverse weather conditions or even piracy. This allows shipping companies to implement appropriate measures to mitigate risks and minimise potential losses;
- Enhanced Customer Service: Trusted data enables better tracking and visibility of shipments, leading to improved customer service and satisfaction. Customers can receive real-time updates on the status of their cargo, helping to build trust and loyalty.
Overall, relying on trusted data in ocean shipping and the maritime industry is essential for ensuring safety, efficiency, compliance, and sustainability in operations, ultimately leading to informed decisions, better outcomes for all stakeholders involved and competitive advantages in the market.
Following the COVID-19 pandemic, propelled by soaring demand, the (container) shipping industry has seen income and profitability skyrocket to unprecedented record-breaking levels.
However, being inherently cyclical, a downturn became inevitable. Freight levels plummeted in recent months, facing shipping lines with a drastic drop of profitability in 2023 and prompting them to caution about the economic outlook for 2024 and beyond. In other words, shipowners, charterers, and vessel operators are under pressure again to enhance competitiveness, streamline operations, and curtail fuel consumption, with the latter remaining the primary operational cost component in container shipping.
Looking ahead, the maritime industry is poised for a digital revolution, with technologies such as the Internet of Things, Artificial Intelligence, Machine Learning and blockchain expected to play pivotal roles in enhancing efficiency, profitability, safety, and last but not least sustainability.
Deep-sea shipping is on the brink of transformative change as IoT and other digital innovations redefine the way vessels are operated. Connected smart vessels stand to benefit immensely from IoT integration.
The advantages of embracing IoT tech onboard ships are manifold, since:
- Limited connectivity and delayed or unstructured data transfers leave crews operating the vessel with unreliable information, and result in poor visibility of fleet performance for headquarter-based teams;
- Deployment and management of multiple non-integrated technical systems on vessels and in landside offices (fleet support centers) are adding cost and complexity, and can be problematic whenever technical issues arise during the sea voyage.
Embracing IoT onboard of ever becoming larger cargo vessels offers shipowners and charterers the potential to unlock data and value in a wide array of applications.
By implementing onboard IoT, which is supporting data-driven decision making, vessel operators and ship managers will gain full visibility of vessel performance and insight into fleet operations.
IoT is an undisputed driver in cost reduction. By connecting onboard systems and devices already available on the vessel, or by adding new devices, shipowners and operators will drive down costs, reduce fuel consumption & GHG emissions and optimize overall vessel performance.
Capturing, analysing and displaying data in such demanding environments and confined spaces, especially below deck (e.g. the engine room or cargo holds), is however challenging. Huge value can be gained from sensor and onboard system deployment.
Merchant ships are complex digital entities, capable of generating vast amounts of data which remain today to a large extent un(der)utilised. The successful utilisation of IoT and sensors in the maritime industry requires a forward-thinking approach to maximise the proven benefits of Industry 4.0.
IoT also enables new business models and opens new value streams, as well as improving the quality and efficiency of logistics. Sensors not only allow asset tracking and monitoring, but they are also able to provide the status of cargo containers. One specific benefit is monitoring real-time metrics of refrigerated containers. This shortens the time to action and is preventing loss of perishable cargo.
In order to transform traditional vessels into truly smart ships on the path to Maritime 4.0 an integrated approach will be required.
From allowing decreasing fuel consumption to predictive maintenance, out of the perspective of companies active in deep-sea maritime transport this all means significantly improving margins by lowering costs and optimising operations, while making a positive impact on the planet.
With Sealution’s product offering we want to propel ocean shipping into the 21st century by delivering reliable IoT connectivity below deck.
Explore how our Sealution Connectivity System is assisting maritime industry participants in meeting the need for trust and transparency. This is achieved by enabling effortless, automated, and instantaneous access to reliable vessel data, thereby streamlining its distribution throughout the value chain.
