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Editor’s Note

The second quarter of 2018 brings serious challenges for shipowners and operators. Of these quandaries, no two issues resonate louder than the looming 2020 emissions dilemma and the tightening ballast water treatment requirements. Neither promises to bring a return on invest- ment. Both will be expensive at a time when global freight rates don’t support that level of

This is

CapEx. Nevertheless, another challenge – the race to harvest, organize, protect and then exploit big data – also cannot be ignored. Without this third issue solved, the other two might not matter.

Within this edition, outgoing IACS Chair and DNV GL Maritime CEO Knut Ørbeck-Nilssen

IT aptly describes the dilemma facing shipowners who fnd that low freight rates prevent them from not only affording new technology, but also taking advantage of what it brings. But, that’s exactly what they need to do. The advent of improved and cheaper connectivity has brought

IT opportunities, software and technical advances to a global waterfront that is not known to be enthusiastic early adopters. The trick will be to amortize that cost over the long run where it will eventually bring a competitive advantage, economic benefts and, believe it or not, a smaller environmental footprint. Within this edition, you’ll fnd out how to make that happen.

Ashore, terminal optimization also means automating the supply chain management pro- cess, leveraging real-time KPIs and trending analytics to improve and standardize best prac- tices. That’s increasingly important as ports on all three U.S. seacoasts report record TEU throughput, partly as a function of the expanded Panama Canal. The U.S. Department of

Transportation’s prediction that cargo volumes will increase exponentially over the next 40 years is coming home to roost. Only those ports and terminals that embrace emerging tech- nologies can fully accommodate that growth in a sustainable way.

You can’t talk about tough operating environments without mentioning the dry bulk sec- tor, which as we fnalize this edition, is fnally showing signs of life. In late April, the

Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, frmed as rates for capesize vessels rose for a twelfth straight session, reaching a 15-week high. That’s welcome news for operators fnd themselves fac- ing those three previously mentioned challenges, while also wondering how they will pay for it. Will it last? To fnd out, turn to Barry Parker’s in-depth analysis of the sector, starting on page 40.

So, you ask, what’s the bottom line for the future of shipping? According to DNV

GL’s Ørbeck-Nilssen, “You leverage the technology that you have to gain more in- sights and then you can also engage more with competence that you have on the land-based side of the organization. So that will defnitely hap- pen also for deep sea shipping. I think every ship manager, every shipowner is very much looking to fnd possibilities to be more ef- fcient, and naturally in this environment, to gain the competitive advantage on the OpEx side gives you the possibility to win more business.” I couldn’t have said it better myself.

Joseph Keefe, Editor | [email protected] 8 Maritime Logistics Professional March/April 2018 | |