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On the 12st of September 2024, Ship Management International and UAB-Online held a webinar on improving port efficiency; why vessel digitsing documentation is essential. But what has been said? What are the pain points in liquid bulk cargo. At ports? And what are the opportunities. Based on the webinar we made a summary of the most important highlights. Below you can re-watch the webinar.
The maritime industry, particularly the liquid bulk sector, is embracing digitalisation step by step but it still faces significant challenges and lags behind other sectors like the aviation industry. Progress is made but the transformation isn’t happening as quickly as desired. Key stakeholders, including port operators, shipowners, and regulatory authorities, acknowledge the necessity of digitising processes to drive efficiency, safety, and environmental sustainability.
Pain Points in Digital Transformation
Even though the maritime industry is moving towards digital solutions, there are still many challenges that slow down its adoption, especially in liquid bulk cargo operations.
High Costs and Investment Justification
One of the major barriers to digitalisation is the high cost associated with implementing new technologies. Many ports and stakeholders are reluctant to invest in digital systems without clear, immediate financial returns. This is particularly problematic for smaller or less technologically advanced ports, which may struggle to justify such investments when the demand for digital solutions isn't widespread among users.
Lack of Standardisation
A significant roadblock is the lack of standardisation across the liquid bulk industry. While Europe has made strides with its European Maritime Single Window initiative, which mandates digital communication between ships and authorities. Many regions and ports still rely on outdated practices, such as paper documentation, phone calls and emails. Also, national and regional regulations further complicate the situation, requiring ships to comply with different standards in different ports. For example ISGOTT 6 and Declaration of Inspection (DOI).
Resistance to Change
The maritime liquid bulk industry has long-established practices, many dating back centuries, which makes it a conservative industry. Operators, especially shipowners, often resist adopting new digital solutions due to concerns over data security, commercial sensitivity, and the perceived complexity of integrating new systems into their existing operations.
Complex Stakeholder Ecosystem
Ports are complex ecosystems with various users and operators, including shipping companies, terminal operators, customs, and other authorities. Coordinating digital initiatives across these stakeholders is challenging. Getting everyone on board with a unified approach requires a significant effort and can slow down the pace of change.
Paper-Based Systems
In some countries, regulations still mandate paper-based documentation, which diminishes the value of digital solutions. For example, in Germany, regulatory documents must still be printed and physically stamped. This disconnect between digital and paper processes creates inefficiencies and discourages wider adoption of digital practices.
Opportunities for Digitalisation
Embracing digital technology brings many benefits, such as improving efficiency, safety, and sustainability, while also cutting costs in the liquid bulk sector. Let's take a closer look at the benefits.
Efficiency and Cost Savings
Digital solutions offer immense potential for operational efficiencies and cost savings. The European Commission’s single window initiative alone is projected to save shipping operators approximately 60-70 million euros annually by reducing administrative workloads. This can be further enhanced by eliminating redundant paperwork, standardising data exchange, and introducing automation in liquid bulk cargo and supply chain management.
Improved Safety and Environmental Impact
Digital systems can significantly enhance safety by ensuring more accurate communication between ships and ports, reducing human errors, and optimising logistics. Furthermore, digitisation can contribute to reducing carbon emissions by improving efficiency and streamlining port operations, which leads to less idle time and delays.
Paperless Operations
The trend towards paperless shipping is gaining momentum, driven by regulatory initiatives and the growing preference of younger generations for digital processes. The European Union aims to achieve a 100% paperless transport system, and similar trends are emerging worldwide. This presents an opportunity for ports and shipowners to modernise their operations.
Collaboration Between Industry and Regulators
Effective collaboration between regulators and the private sector can drive digitalisation. Initiatives by the European Commission to harmonize data formats are essential. The maritime industry must work together with technology providers, regulators, and other stakeholders to create systems that are both cost-effective and accepted globally.
Digital Bunkering
In the bunkering supply chain, digital solutions can play a crucial role in enhancing transparency and reducing disputes. For instance, adopting mass flow meters and digital delivery notes in key ports like Singapore and Rotterdam has already improved efficiency and reduced fraud. Expanding these systems to other ports worldwide would create a more seamless, reliable bunker industry.
Conclusion
While the maritime industry has made progress toward digitalisation, the liquid bulk sector still faces challenges that slow its transformation. By addressing the high costs, standardisation issues, and resistance to change, the industry can unlock significant opportunities for cost savings, safety improvements, and environmental sustainability. Collaboration across stakeholders, combined with regulatory support, will be key in driving the sector toward a fully digital future.
