Digital interoperability key to future-proof efficiency in container shipping
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DIGITALISATION OF SHIPPING
Digital interoperability key
to future-proof efficiency in
container shipping
By THOMAS BAGGE, chief executive officer and statutory director of
Digital Container Shipping Association (DCSA)
COVID and the case for digital container shipping industry, providing simplify and clarify the booking process,
standards unprecedented levels of efficiency, it will provide visibility into container
innovation and customer service. But to whereabouts and status throughout the
COVID-19 has resulted in unprecedented
digitalise the supply chain from end to end, container journey, thus helping establish
disruption to the mechanics of most
IT solutions must be interoperable at every trust between all parties. Once trust
economies, placing a major strain on the
link in the chain. This requires widespread through transparency is established, real
world’s supply chains, including essential
adoption of digital standards such as those innovation can occur—innovation that will
linkages relating to food and medicines. DCSA and its members and collaborators, enable industry-wide digital transformation.
The current state of supply chain are working to develop.
logistics has exacerbated this strain,
DCSA digital standards enable
creating unnecessary delays caused by
manual and paper-based processes that Interoperability enables visibility interoperability with real-world
are still used in some vital links in the and innovation benefits
chain, including container shipping. Interoperability is the ability of computer With nine of the top eleven ocean
systems or software to exchange and carriers as members, DCSA aims to
Take for example the bill of lading
make use of information. Currently, be the de facto technology standards
(B/L). In the vast majority of container body for the container shipping industry.
container shipping lacks end-to-end
journeys, B/Ls are still being printed on Working in close conjunction with our
interoperability because it lacks a
paper and passed from hand to hand carrier members, select stakeholders,
common approach to technology. This
as the container passes from vehicle solutions providers, industry regulators
makes information exchange between
to vehicle, from land to sea, and from and other standards bodies, DCSA has
parties unnecessarily difficult and
country to country. As a result of the aggregation of data challenging. As several ongoing initiatives that address
pandemic, cargo is getting stuck in ports a result, many container shipping some of the most impactful and urgent
waiting for paperwork to be delivered by processes provide a digital experience needs in the industry.
flights that have been delayed. Having that is far inferior to that of telco, banking
the electronic bill of lading (eBL) as the Our initiatives can be grouped into five
and more digitally advanced industries.
dominant format for bills of lading would categories, with standards that are
reduce or eliminate such delays. Take booking. Critical information published or targeted for publication by
such as arrival times and available the end of 2020, listed below:
Consider also that every year, the space is often unreliable. And during
mishandling of reefer containers results • Industry Blueprint—The DCSA
the container journey, transport chains
in huge losses for companies that rely Industry Blueprint establishes a
often appear as “black boxes” to cargo
on cold-chain logistics. Currently, it is consistent vocabulary and proposes
owners. Containers are lost from view
difficult for cargo owners to track the standards for container shipping
until they arrive at certain points along
whereabouts of containers and manage processes. Most DCSA standards
the supply chain. Not only does this
the status of their contents from end to leverage the definitions and standards
build high costs, inefficiencies and waste
end. IoT (Internet of Things) solutions for put forth in the Industry Blueprint.
into the supply chain, it creates a lack
“smart containers” are needed to enable of trust between shippers, carriers and • D
ata & interfaces—Our data &
an uninterrupted flow of container data other participants. interfaces initiative includes four sets
throughout the journey. This will ultimately of standards:
DCSA standards will enable end-to-end
allow continuous remote monitoring and
interoperability, allowing supply chain • T
he DCSA Information Model sets
control over the quality of perishable items.
participants to digitise data and send and the foundational data language and
These are just two of many examples receive it in a way that is understandable logical data model for container
of how digitalisation will transform the and usable for everyone. This will not only shipping.
48 Shipping Australia Limited I Spring/Summer 2020
SU D
BU R G
HAM
A friend in the business.
Hamburg Süd.
In business, it helps to have a friend you can turn to for good
advice and strong support. Someone who knows your needs
and takes the personal care needed to meet them, always
working in your best interests. Product excellence and service
reliability are indispensable, but what creates that kind of
commitment is a spirit of cooperation, continuity, and trust –
in other words, friendship. And that’s the ship you can count
on to carry everything forward.
No matter what.
Shipping Australia Limited I Spring/Summer 2020 5
www.hamburgsud-line.com• T
he DCSA Interface Standard for status of their contents at any point DCSA strongly believes that container
Track and Trace (T&T) establishes along the container journey. shipping can have the same success
process, data and interface (API) in terms of digitalisation. Our long-
• C
yber Security—The DCSA
standards to enable customers to term ambition is to bring the container
Implementation Guide for Cyber
digitally track and trace shipments shipping industry to the level of these
Security on Vessels facilitates vessel
across multiple carriers. more digitally advanced industries.
readiness for the IMO Resolution
enefits: This will simplify shipment
B MSC.428(98) on Maritime Cyber Risk Compare the eBL and the e-Air Waybill
visibility across multiple carriers, Management in Safety Management for freight in the airline industry. In 2010,
enabling shippers to better plan Systems. IATA introduced e-Air Waybills (e-AWB)
and optimise shipment handling for airfreight. At present, adoption of
• B
enefits: DCSA cybersecurity best
activities. e-AWB is over 68 per cent. By the
practices help shipping companies
end of this year (2020), DCSA will have
• T
he DCSA Interface Standard for meet the IMO’s January 2021
released our first set of eBL standards.
Operational Vessel Schedules enables implementation deadline to ensure
If the container shipping industry starts
automatic sharing of vessel schedule crew safety. Shippers and BCOs will
adopting eBL standards in earnest,
information between carrier VSA greatly benefit from having their goods
we project that a 50 per cent adoption
partners and operational providers. onboard a secure vessel.
rate is feasible by 2030. At 50 per cent
enefits: Carriers can digitally
B • P
ort Call Optimisation (PCO) — DCSA adoption, we estimate that the industry
publish their schedules, and their PCO standards will enable the just-in- can potentially save more than US$4
partners and operational service time port call by aligning operational billion per year, at a global economic
providers can subscribe to their processes and data communication growth rate of 2.4 per cent through 2030,
feed to automatically receive or between carriers, ports, terminals and as forecasted by the OECD1.
retrieve updates as needed. This other stakeholders.
will provide complete vessel Transforming container shipping
• B
enefits: These standards will enable
schedule transparency, increasing
better planning and greater efficiency requires collaboration
efficiency and enabling better
at ports and terminals. DCSA works in collaboration with a wide
planning and optimisation of
shipping activities. array of stakeholders to develop digital
Investment in DCSA standards is standards and promote adoption. The
• D
CSA has also announced its intention more contributors and adopters we
an investment in the future
to work with industry stakeholders to have, the more useful the standards
develop eBL standards for data format DCSA standards provide a safe
will become. Our carrier members
and transmission. This will enable environment for technology investments.
are committed to implementing DCSA
an eBL to be safely and seamlessly They are vendor and platform agnostic,
standards as part of their digitalisation
delivered from end to end. which ensures interoperability between
strategy, and we actively seek input from
all stakeholders. Any relevant party that
enefits: All stakeholders,
B all parties to gain insights into the needs
has implemented DCSA standards can
regardless of pre-existing of specific markets.
be involved in a transaction. This allows
relationships, can be involved in a intermodal transportation providers to As a non-profit, independent
transaction as long as they have invest with confidence in IT solutions that organisation, we aim for full transparency
implemented the standards. Having are backed by the major shipping lines. and publish our standards open source,
a standard eBL will also make it free for everyone to use. Using an agile
easier for regulators, banks and DCSA also works with many standards
development process, we focus on
insurers to accept it as a viable and regulatory bodies to receive input
driving alignment among our nine carrier
alternative to paper. and achieve standards alignment.
members to rapidly publish standards,
These include UN/CEFACT, BIMCO,
• Internet of Things (IoT) for smart solicit industry feedback and quickly
World Customs Organization, European
containers —The DCSA IoT Container iterate, if necessary.
Commission, International Chamber of
Standards for network connectivity Commerce, IATA, and the US Customs If you are a customer of ocean carriers
will enable interoperability of devices and Border Protection, among others. or work closely with container shipping,
mounted on containers and gateways This ensures that stakeholders can your involvement in the standardisation
in terminals, warehouses and implement DCSA standards while process is crucial to transforming
vessels. Future releases will cover preserving their investments in existing this industry. As highlighted by
data structure and handling, physical systems and processes. the pandemic, the need to replace
device specifications, and security and antiquated shipping processes with
access management. efficient, digital processes is more urgent
Standardisation success stories
enefits: These standards
B than ever. And a standardised, scalable
In banking, telco, entertainment, retail approach is the only way to future-proof
put carriers and supply chain
and media, digital standards have been such a fragmented, complex and global
participants one step closer to
creating value for some time. As a result, industry. We invite you to engage with
providing customers with an
these industries have produced a better us by subscribing to DCSA updates and
uninterrupted flow of relevant
customer experience, and a higher making contact through our website,
information regarding the
degree of efficiency and innovation. www.dcsa.org.
whereabouts of containers and the
Shipping Australia Limited I Spring/Summer 2020 49You can also read
