Department of Ship Technology

Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

SPECIAL SEMINAR

DIGITALIZATION
OF
MARITIME INDUSTRY

by
MUHAMMED HARRIS V A

BACHELOR OF TECHNOLOGY;
NAVAL ARCHITECTURE & SHIP BUILDING

Department of Ship Technology

Cochin University of Science & Technology

Digitalization of Maritime Industry Muhammed Harris V A 1

 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

Contents

❖ Introduction………………………………………………… 03

▪ Areas of Digitalization ………………………………….. 03

− Digitalization in Vessel Operation……………….... 03
− Voyage Estimation…………………………………. 04
− Bunker Prices………………………………………. 04
▪ Vessel Speed & Consumption……………………. .…….. 05
▪ Digitalization in Port Operations………………………… 05
▪ Unmanned Vessel ……………………………………….. 06
▪ Risk associated with Autonomous Ships………………… 06
▪ Digitalization and Decarbonization……………………… 07
− IMO DCS………………………………………….. . 07
− EU MRV…………………………………………… 08

❖ Conclusion…………………………………………………… 08

❖ Reference…………………………………………………….. 08

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

Introduction

The transition towards digitalization and automation is speeding up in the maritime industry.
Digital technologies and solutions are being used to increase competitiveness and enhance
operational efficiency. They are also being implemented to spur the industry along the
decarbonization path to realize zero emissions from international shipping by mid-century.
Data streams from sensors and other sources of information can be used for decision making
and enhanced monitoring, control, quality assurance and verification.

Digitalization and new developments in the field of:

• Artificial intelligence
• Blockchain
• IoT
• Automation

are becoming increasingly relevant for maritime transport. They help streamline existing
processes, create new business opportunities, and transform supply chains and trade geography.
Despite the potential, opportunities and benefits offered by these technologies, they also entail
risks and potential costs for maritime actors in developing countries. And also need to ensure
that digitalization works towards the Sustainable Development Goals.

Areas of Digitalization

3 major areas of digitalization: –

1. Vessel operations
2. Port operations
3. Unmanned vessels (Autonomous Ships)

1. Digitalization in Vessel Operations

Vessel operations are one of the most important part of maritime digitalization. Vessel
operations consist of loading and discharging of cargo, movement of cargo from one port to
another, bunkering, etc.

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

Also note that, apart from capital costs (capex) to the owner, the next major costs that a
shipowner incurs is operational costs (opex). In which, capital costs are generally fixed and
there is a very limited scope to minimize it after the purchase of the vessel.

Operational costs are further divided into two parts –

1. Operating costs (these are semi variable)
a. insurance,
b. crew wages,
c. administration,
d. maintenance,
e. dry dock, etc.

2. voyage costs (costs related to performing a voyage)

a. bunkers
b. port & canal charges
c. pilotage
d. harbour tugs
e. agency
f. stevedoring
g. cargo operations.
These costs are highly variable.
Thus, in order for a shipowner/operator to maximize the profit, they need to minimize the
voyage costs since they are the only ones that can be highly controlled. Following is the way
in which digitalization is this:

1. Voyage Estimation

Traditionally, voyage estimation was done on a piece of paper, there are many variables
that are present in a voyage estimation and there is a probability of human error when
there are many variables and calculations involved.

Programs and software make voyage estimation very simple. The user just needs to
enter the correct data for the results. These programs also give interactive results so
that, proper adjustments can bring in efficient way.

2. Bunker Prices

Any variation in bunker prices will drastically increase or decrease the profit for the
voyage.

There will be a lot of options during voyages for bunkering the vessel. But, to find out
the best bunkering port, operator would have to manually calculate deviation and hire

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

lost due to deviation plus the time taken for bunkering. Also, operator would have to
call up their suppliers in all the different countries in order to find out the prices. This
becomes very hectic and cumbersome and operator may not choose the best bunkering
port due to calculation error. Here comes the very benefits of digital solution.

There are many online portals where operators can see:

• live bunkers prices for the ports,
• availability of type of fuel,
• availability of bunker barges, etc all in one go.
This eliminates the problem of operator checking on each and every broker for
availability of the bunkers. Platform also has a bunker planning module wherein
operator by inputting details like speed, consumption, load and discharge ports, can find
the best possible bunkering port with minimum costs.

3. Vessel Speed and Consumption

Another way to maximize profit is to optimise the consumption at sea by reducing the
speed. To achieve this, we need dynamic speed optimisation solutions. Dynamic speed
optimization platform which with help of dynamic machine learning models, operations
teams can draw upon a dataset that accurately depicts expected performance in any
given draft and weather condition also taking into commercial constraints such as ETA,
voyage profit targets, etc.

2. Digitalization in Port Operations

We know delays at ports can cost a lot of money to everyone who is a part of the supply chain
by messing up the time and place utility of the goods.
From vessel side, when a vessel is loading/discharging the cargo at a port, it has to go through
a tedious paper work process, which includes customs clearance, crew list, cargo manifests,
statutory documents, bills of lading, etc.
Another problem faced was unavailability of berth for days due to line up which again led to
loses. Inventory mismanagement also occur in liner industry due to these kinds of delays.
As a solution, Smart Ports are trying to eliminate these kinds of issues by using big data,
Internet of Things and Blockchain. That means, there is a lot of data available to the ports. This
data is related to weather, vessel scheduling, load and discharge times of vessel, quay side
operational times, movement of trucks and trains, time taken for documentation, etc. All this
data can be studied and used to improve the processes.

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

Ports can install sensors to monitor:

1. health of the equipment,
2. time taken to complete a process, etc
and use the data to optimise the process throughout the port. Sensors can also be used for
inventory planning and procurement. Port data combined with data from vessels arriving to the
port can be used to optimise the planning for berthing which increases turnaround time for
vessel as well port.
By forecasting berth availability, weather conditions, shore side equipment, etc, vessels can be
warned and advised well in advanced weather they need to increase their speed and come to
port early or reduce the speed and arrive late in order to reduce the waiting time.

3. Unmanned Vessels (Autonomous Ships)

Automated ships are the ships that will be operated with no presence or minimum presence of
crew on board. They function with help of sensors and artificial intelligence.
Note that, most of the vessel that are operated by crew will have many problems, like accident
due to human error, high OPEX cost due to crew salary, etc. Most of the problems can be
eliminated by autonomous vessels. Since the vessels are mainly operated by AI, the decision
making will be leading to:

• lower accidents
• implement and optimise the routing and speed
• Absence of crew
− free up space taken by bridge and crew compartments
− reduce weight and free up more space for cargo.
• no bunker theft since there will be no crew
• autonomous ships can be battery operated, save huge money that are spent on bunkers.

Over the past few years, companies like Rolls-Royce Marine and Japanese shipping giant
Nippon Yusen have shared plans to send remote and autonomous ships to sea. These ships
will remain crewed, to begin with, but as the technology advances, some of the ships may be
crewless by as early as 2020.

Risk associated with Autonomous Ships:

The main problem with autonomous ships is the safety and the investment in infrastructure.
Autonomous ships involve a lot of technology (like 5G for very fast communication and
decision making) and these ships need a terminal for operation on the shore which require a
highly technologically skilled person.

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

Since autonomous vessels are crew less, there will be a lack of human interference which may
be vital during the times of emergency as even AI is bound to make mistakes. There will be a
need

for continuous monitoring of ships from shore since it is dependent on technology which is not
required in case of manned vessels. High sea maintenance will be close to impossible because
of absence of crew.

Another major problem with autonomous ships will be hacking. Every online system is
vulnerable to hacking and so will autonomous ships be. In case the system is hacked, the
consequences can be anywhere from taking the ship for ransom to using the ship for terrorism
purposes or colliding with another vessel.

Digitalization and Decarbonization

In April 2018, the IMO adopted an ambitious GHG reduction strategy with a vision to
decarbonize shipping as soon as possible within this century. With 2008 as a baseline year,
this strategy aims to reduce with at least 50% total GHG emissions from shipping by 2050,
while at the same time reducing the average carbon intensity (CO2 per tonne-mile) by at least
40% by 2030, and 70% before mid-century.
Important steps towards decarbonization via digitalization are:
1. IMO DCS
2. EU MRV
Both, IMO and EU, have clear ambitions to reduce greenhouse gases emissions (GHG) from
shipping. The EU developed its own first step in a process to collect and analyse emission
data related to emissions from ships (“EU MRV”) prior to an international agreement being
reached by the IMO (“IMO DCS”)

IMO DCS
DCS: Data Collection System for fuel oil consumption of ships

Amendments to MARPOL Annex VI on Data collection system for fuel oil consumption of
ships, adopted by resolution MEPC.278(70), entered into force on 1 March 2018.

Under the amendments, ships of 5,000 gross tonnage and above are required to collect
consumption data for each type of fuel oil they use, as well as other, additional, specified data
including proxies for transport work.

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 Department of Ship Technology
Special Seminar B. Tech (NA & SB), CUSAT Batch XLII

EU MRV

The full form is “Monitoring, Reporting and Verification” of carbon dioxide emissions from
maritime transport. Regulation entered into force on 1 July 2015, and requires ship owners
and operators to annually monitor, report and verify CO2 emissions for vessels larger than
5000 gross tonnages (GT) calling at any EU and EFTA (Norway and Iceland) port.

Data collection takes place on a per voyage basis and started 1 January 2018, while reporting
is performed on an annual basis.

Conclusion

Digitalization in maritime industry will be a huge investment which will change the whole
infrastructure after a ship is in the operation but there are no solutions to reduce the costs of
shipbuilding or financing of buying a new ship. Also, with all the technology comes the risk of
security as well as unemployment. Autonomous ships are bound to hit the crew market and re-
direct the economy. Moreover, digitization boost up to collect and analyse emission data related
to emissions from ships so as to achieve the ambitious GHG reduction by the end of century.

Reference

− DNV website: https://www.dnv.com/maritime/insights/topics/digitalization-in-the-

maritime-industry/index.html
− Digital Ship website: https://www.hellenicshippingnews.com/digitalisation-in-the-
maritime-industry/
− https://www.hellenicshippingnews.com/digitalisation-in-the-maritime-industry/
− Marine Insight website: https://www.marineinsight.com/shipping-news/digitalization-
wave-shipping-industry/
− IACS source: https://www.iacs.org.uk/media/7054/iacs-eu-mrv-position-paper-
rev1.pdf#:~:text=EU%20MRV%20and%20IMO%20DCS%20are%20two%20similar,
as%20per%20the%20communication%20on%20European%20Green%20Deal
− DNV website: https://www.dnv.com/maritime/insights/topics/EU-MRV-and-IMO-
DCS/index.html

- The End -

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