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Global Container Shipping

Credit: CMA CGM

On the tech side of the business, so-called ‘digitization’ is platform, FREIGHTOS, another holder of freight rate data impacting the container sector, more so than others. “Block- used widely by logistics providers and cargo owners, hopes to chain” technology – whatever that is – viewed by some pun- bring transparency to the scrum. It has now announced collab- dits as the tidal wave and great enabler in simplifying supply oration with the venerable Baltic Exchange (best known for the chains, is waiting somewhere in the wings. Maersk took an Baltic Dry Index and its offshoots) to create a suite of container early lead here, launching a project in conjunction with IBM. rate indices, based on anonymized data within its system.

In the meantime, CMA-CGM, whose APL subsidiary has joined a consortium, which includes consultants Accenture, is THE MORE THINGS CHANGE … hard at work on a competing effort. At a Hong Kong logistics conference in late 2016, an Al-

Still, digital efforts are moving ahead. In APM’s mid May phaliner analyst got up and gave a talk on the current state

Q1 results, Soren Skou explained: “… we see signifcant cus- of the global boxship markets. As he rattled off a long list of tomer uptake in the digital offerings and moving through digi- what was happening in the sector, listeners nodded their heads tal transactions online, and that will over time, result both in and murmured their assent as if to say, “We know.” After fve lower costs and also in our ability to sell more products on our minutes, though, he revealed that he had really been reading online platform.” He emphasized that point by revealing, “60% from a ten-year old news story. That got a laugh – but he had of all bookings, 84% of all quotes, $1.3 million worth of busi- made his point.

ness every hour is currently transacted on maerskline.com.” As the containership markets face familiar challenges,

Online platforms and marketplaces go hand-in-hand with though, it also faces the headwinds of ballast water treatment the changing nature of the business, where deregulation in the costs, surging fuel costs, falling rates, possible trade wars and 2000’s has led to a volatile marketplace dogged by old busi- IMO 2020 deadlines. The route out of murky waters won’t be ness practices. INTTRA, by now a familiar online booking any easier this time, especially with the additional burden of platform developed by the carriers in the early 2000’s, is now countless other pressures looming. Technology no doubt will seeking to add value by getting into the backend of the busi- be a part of the solution. But, in the end, avoiding the mistakes ness by streamlining the management of contracts dogged by of the past will be just as important.

old style paperwork and the ineffciencies that go with it.

Separately, NYSHEX, a newer online marketplace presently

Barry Parker

The Author concentrating its efforts in the trans-Pacifc trades, has sought

Parker of bdp1 Consulting Ltd provides strategic and tactical support, including analytics and communica- to streamline rate quotations, and has added fnancial guaran- tions, to businesses across the maritime spectrum. The tees to drive performance of contracts extending out as far as company can be found online at www.conconnect.com six months into the future. Still another freight procurement 34 Maritime Logistics Professional May/June 2018 | |