New digitization solutions such as big data, blockchain, automation, drones, and robotics, are enabling the maritime freight industry to introduce game-changing approaches that will significantly reduce or eliminate non-value-added activities, according to a new report.
New research from firm ABI predicts that over the next five years, maritime suppliers across the value chain will increasingly adopt solutions to address security, overcapacity and accurate cost models.
Susan Beardslee, Principal Analyst at ABI Research, said: “Along with consolidation and pressures on profits, long-standing players must adapt and work with partners within and outside the industry, from startups to technology leaders in connectivity, AI, and more, including the competition, to align on much-needed standardization.”
Recent examples include Wärtsilä’ s acquisition of Transas to support an intelligent maritime ecosystem and Artificial Intelligence (AI), as well as Orange Business Service's deal with Cargotec for smart cargo handling.
Global maritime freight transportation revenue is expected to grow from US$166 billion last year to over $205 billion in 2023.
Enhanced revenues and profits will be driven by technologies best poised to disrupt the maritime shipping industry including big data and analytics, blockchain, electrification, assisted and automated operations, drones and robotics, Augmented Reality (AR), and Virtual Reality (VR).
Maritime cybersecurity, also necessary to address current and emerging threats, will have a global spend expected to rise to $1.7 billion in 2023.
Beneficial Cargo Owners are also gaining greater supply chain visibility and automation from start-ups.
These include predictive logistics provider ClearMetal, Xenata’s crowdsourced, on-demand, real-time benchmark and market intelligence, and Flexport’s digital procurement platform and Freightos’ marketplace for rate management.
IBM has also partnered with Maersk Line on blockchain as well as with Cisco on smart connected ports, while Microsoft is partnering with OOCL on AI for maritime.
These findings are from ABI Research’s the Digital Transformation of Maritime Freight report.