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Predictions that the current crop of disruptive digital start-ups will revolutionise container shipping has been disputed by a leading liner analyst.
Alphaliner this week suggested that, despite the considerable hype and hundreds of millions of dollars raised by freight and logistics start-ups in Silicon Valley and elsewhere, evidence suggests that the container shipping industry is peculiarly resistant to being radically transformed.
“Since the first generation of shipping portals was launched in 2000, the container shipping market has not seen any transformative change in ...
Comment on this article
Gunther Ginckels
October 12, 2017 at 2:37 pmThere is a basic rule on ICT innovation; if you automise an inefficient process the result will be the aggravation of the inefficiency hence sinking deeper in the broken process. That is not to say that the Shipping, Transport and Port Industry is not in need for innovation and ICT supported progress. But today’s buzzwords are Big Data, Blockchain etc… where smart start-ups manage to profile themselves in an industry where they have little affection or experience with. The result is than that the impact on the logistic chain efficiency is marginal and my recent experience with some of the mentioned “names” is that they do not add value to the process and thus no value to my business or the activities of cargo owners in need of logistic solutions. That does not mean that the quest for innovative logistic solutions should be abandoned, nor that these so-called start-up “innovators” should cease their activities. What it does mean is that other elements are to be innovated. One can Blockchain as much as one wants, when the hardware is not following it will be a waste of resources and money failing to contribute to solutions. When 22,000 TEU ULCV’s dump in a timeslot of 24 hrs over 5,000 TEU in ports and Terminals are unable to process these containers efficiently, blockchain is a waste. When containers leaving the ports are entering in hundreds of miles road congestion, blockchain is a waste. When barges face berth congestion for 2 to 3 days, blockchain is a waste. When container terminals fail to invest in capacity and innovative hardware, blockchain is a waste. It will than only be a matter of time until another guru will stand-up and come with another buzzword to exite the industry. The bottom line is that Alphaliner is right when stating that digitisation will not deliver the predicted or expected revolution or innovation in the container shipping industry. I would however add the term “only” as both digital AND hardware innovation should go hand in hand and will than deliver the expected results. A Quantum Leap Mindset is therefore required. Who has the bravery and funds?