Page 120: of Maritime Reporter Magazine (August 2016)

SHIPPING INSIGHT 2016 PREVIEW

Connected Ships & Smart Data

BY JIM RHODES & FRANK SOCCOLI

You will have noticed that this jour- make good business decisions, shipown- cyber risk vary from $114 billion to $1 out these sessions will be pulling timely nal and other shipping trades have been ers need to get more and better data from trillion, making actuarial risks impos- data from ship systems and using it to ? lled with headlines on Big Data in their ships at sea. sible to calculate. As a result, insurance improve decision making.

shipping. Sounds great, but what exactly This is not easy, since most shipboard coverage for marine cyber risk is dif? - As in past years, SHIPPINGInsight does it mean? equipment simply was not designed for cult, if not impossible to obtain. Only a 2016 will provide a forum that brings

Strictly speaking, the term Big Data is easy data mining. Retro? tting a ship for handful of specialized underwriters have together shipping companies and tech- incorrect and misleading in this context. data gathering can be complex and ex- the knowledge that would enable them to nology partners in an intimate setting

In the IT world, Big Data is usually de- pensive. cover the risk. with ample opportunities for formal and ? ned by the “3Vs”: the volume of data, It involves running cables and/or set- Happily the shipping industry has informal networking. New for this year the variety of data sources and the veloc- ting up wi-? connections with devices. started to wake up, and we are now is an open-dialogue Q&A-driven “Ship- ity at which it is processed. Other de? ni- Some of them may be virtually inacces- seeing a proliferation of cybersecurity owners Roundtable,” in which senior tions add two more: veracity and value. sible. Others may have been designed guidelines from ? ag states, classi? cation executives from major ship-operating

Big Data involves data crunching on a with proprietary output formats and dif- societies, international organizations and companies will share their perspective massive scale, often measured in pet- ferent types of I/O ports, which means third-party specialist ? rms. Columbia and answer questions from delegates.

abytes (1 quadrillion bytes) or even exa- lots of custom interfaces and external Shipmanagement last month announced bytes (1 billion gigabytes). To put this in data conditioning devices. And then plans to work with DNV GL to be the Paradigm Shifts and perspective, consider that 200 petabytes there’s a matter of pushing the data sets ? rst to achieve ISO 27001 certi? cation Disruptive Technologies would encompass all of the printed mat- through the satellite connection to of- for information security management We’ll leave you with this thought. New ter in the world. Big Data is hard to ? ces ashore. systems. More will do the same. ships are being built with more automat- manage and requires highly advanced ed systems and IT networks wired for programming power to manipulate. Risky Business Connect and Communicate connectivity, and the heavens are start-

Nonetheless it is at the heart of corporate There is also another consideration. Ship connectivity, actionable data and ing to ? ll with high-throughput satel- strategy within the halls of Microsoft, Connecting shipboard and shoreside IT communication/IT security will be cen- lites offering abundant capacity. We will

Uber, Amazon, LinkedIn and Google. networks opens the door to new risks. tral themes at the 5th SHIPPINGInsight surely see lot more information ? owing

The solutions currently on offer in the The shipping industry is just now com- Fleet Optimization Conference & Exhi- from ship to shore in the coming decade. shipping industry, on the other hand, ing to grips with the threat of cyber at- bition, which convenes October 18-19 While it may not rise to the threshold of are really what the IT community calls tacks. Experts warn that ships’ naviga- in Stamford, Conn. The two-day 2016 true Big Data, these availability of data “Small Data,” yielding information that tion and communication systems are conference will present four themed ses- in near real-time from ships will doubt- is accessible, understandable and action- particularly vulnerable. It’s no wonder sions, each addressing a major area of less change the way shipping ? eetss are able for speci? c tasks. It’s been said that, that cyber security is starting to displace concern: operated. Marine transportation may be- “Big Data is for machines, and Small Big Data as the leading headline in the • Regulatory Compliance gin to look more like land and air trans-

Data is for humans.” maritime media. • Ship Connectivity & Cybersecurity portation.

To extract a petabyte of data from The threat is real and the impacts can • Big Data/Smart Data & Shipping Industry thinkers like Dr. Martin Stop- ships at sea would take an enormous sat- be mind boggling. At the recent Global Intelligence ford and futurist K.D. Adamson have ellite pipeline, which would be impracti- Insurance Forum in Singapore, delegates • Fuel & Propulsion argued for a radical transformation in cal and expensive. And what would you were told that cyber attacks could trigger Each session will include formal presen- the business model for shipping – some- do with it if you could get it? a crisis on the scale of the 2008 ? nancial tations from industry experts as well as thing revolutionary comparable to the

It’s been reported that one of the meltdown. And at the German Maritime open-discussion roundtables. Speakers introduction of containerized cargo by world’s largest shipowners initiated a Law Association annual meeting, an ex- will address current solutions and peer Malcolm McLean in 1956. program of methodically collecting and ecutive from Munich Re stated that the into the future of ship technology. You In June, Rolls-Royce proclaimed the analyzing noon reports, and achieved estimates of the total annual loss due to can bet that a recurring theme through- autonomous ship revolution has already signi? cant gains in ef? ciency ? eetwide begun, predicting the ? rst computer- by identifying trends and anomalies. The controlled ships at sea by the end of the point is that even small data sets can pro- decade. “ duce big results. As disruptive as the smartphone, the

It seems to us that a more descrip- smart ship will revolutionize the land- tive and accurate term would be “Smart scape of ship design and operations,”

Data.” said Mikael Makinen, president of Rolls-

Whatever you choose to call it, the Royce Marine.

point is that in the current business cli- And consider this. A Chinese af? li- mate shipping companies must maxi- ate of Amazon, a Big Data giant if there mize ROI on capital expenditures and ever was one, recently registered with minimize operating expenses without the Federal Maritime Commission to be- compromising safety of ships and crew. come a licensed ocean freight forwarder,

Data from ships – Big, Small or In-Be- and Amazon has ? led an application tween – is critical, since it’s impossible with the Shanghai Shipping Exchange to optimize assets if you can’t extract to serve as a broker for 12 trade routes. timely data on their performance. To Might Big Data be closer than we think?

120 Maritime Reporter & Engineering News • AUGUST 2016

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