Shipping industry sees digital sea change

Like many other industries, the shipping sector has also found itself in choppy waters since the onset of the COVID-19 pandemic. As nations around the world closed borders to contain the spread of the virus and freight movement came to a standstill, there was a profound impact on the supply chain. The global shipping industry felt the heat of the sudden drop in exports and imports, especially of crude oil, which disrupted distribution and logistics. However, on the bright side, the pandemic has also sped up the digitization and modernization of the shipping industry since many ocean supply chain stakeholders were forced to ditch long-established manual processes and move towards automation. 

After battling the headwinds for months, the industry is finally slowly returning to "normal" with the ports buzzing again amid increasing freight movements and demand for shipments. However, one thing that has not remained the same is the shipment processes. Having realized the power of technology, stakeholders in the shipping sector are investing heavily in upgrading their systems and making huge investments in digitizing operations. 

“The global shipping industry is at the tipping point. Digitalization is happening faster. There are more air and ocean carriers offering digital services than ever before and the pace is quickening,” stated Jeff Wehner, the Co-Founder of Haven Inc., a freight logistics automation company. Industry experts believe the pandemic has helped shippers compare automated processes with manual ones and have realized the benefits of digitizing. This includes streamlined supply chains, cost effectiveness, information exchange, accuracy, and transparency. Thus, international ports which had already invested heavily in technologies navigated through the Covid-19 challenge much more comfortably than those that had not.  

“Digitalization of operations is now inevitable and will only gain momentum. The crisis has given organizations a greater understanding of the different ways of working enabled by digitalization. The use of artificial intelligence and automation of operations generate data that help build new models to make services even better,” opined Said Al Maawali, CEO of Oman Shipping and Oman Drydock.

One more reason why there is no looking back for the shipping sector as far as digital transformation is concerned is the International Maritime Organization (IMO)'s recent requirements to decarbonize and reduce carbon footprints. Remote operations will help the global shipping freight sector ensure a much more sustainable future for all stakeholders. 

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