Shell and unions representing workers at its Prelude floating liquefied natural gas (FLNG) facility have reached a wage deal to end a long-running strike and restart production at the site off northwest Australia, they said on Wednesday.
Shell shut the 3.6 million-tonnes-a-year Prelude facility in July and told customers it would be unable to supply LNG for the duration of the protected industrial action, or strikes approved by Australia’s Fair Work Commission, over a wage dispute.
“Shell is pleased to confirm an in-principle Enterprise Agreement has been reached with the Australian Workers’ Union and Electrical Trades Union in relation to the Prelude FLNG facility,” the company said in an emailed statement.
“The process to formally lift the work bans in place under the Protected Industrial Actions is expected to be completed shortly, which will enable the facility to commence the process to prepare for a hydrocarbon restart,” it said.
A Shell spokesperson was not immediately available to comment on how soon the company would be able to resume LNG shipments.
The Offshore Alliance, which combines the Australian Workers’ Union and Maritime Union of Australia, said workers would vote on the enterprise bargaining agreement (EBA) later this week.
“76 days of lawful Protected Industrial Action to secure an EBA which prevents jobs being outsourced to low-wage labor hire contracts is a fight worth having,” the Offshore Alliance said on its Facebook site.
A group of French entrepreneurs has acquired one of the former Holland America Line cruise ships sold during the pandemic with plans to revive their effort for a cruise line marketed to France. The former Holland America Line Maasdam recently adopted the new name of Renaissance and Compagnie Française de Croisières (CFC) based in Marseille plans to announce in September its new cruises.
Reports indicate the CFC is being started up by partners Clément Mousset and Cédric Rivoire Perrochat. Both of the executives had been working with UK-based Cruise & Maritime Voyages with plans to launch the dedicated French cruise operation. CMV had marketed cruises starting in 2016 to France and in late 2019 announced plans for these executives to launch a French division of the company. They were to start cruising year-round in May 2021. CMV reported it would refit the cruise line’s vessel Astor and rename her Jules Verne. The plan, however, did not proceed due to the suspension of cruising in March 2020 and the financial collapse of CMV later that summer.
The executives are deferring details of their new effort until the September press conference. However, they are being linked to the sale of the former Holland America Maasdam, which has been laid up in Greece since the summer of 2020. Greek investors which also own Seajets a Greek ferry operator purchased a series of cruise ships mostly from Carnival Corporation as the company sought to accelerate the disposal of older ships during the pandemic-related industry pause. Maasdam was renamed Aegean Myth but remained idled while it was believed Seajets sought a buyer or long-term charter.
Built in 1993, the 55,500 gross ton cruise ship was the second in a new class of vessels built for Holland America Line by Fincantieri shortly after the line was acquired by Carnival. Accommodating 1,200 passengers, the cruise ship was a key part of Carnival’s expansion and modernization of Holland America. In later years, she had been replaced by larger cruise ships while Holland America placed the Maasdam on longer cruises and sending her to exotic destinations. She along with her sister ship Veendam and two other sisters that were operating for P&O Australia were all sold by Carnival in 2020. Three of the ships were acquired by Seajets which offered them for resale while the fourth ship was acquired by Portuguese investors and now operating on charter to Nico Cruises.
CFC’s efforts to launch a French-speaking cruise line are not the first recent effort at developing the market. Before CMV’s plans for France, Spain’s Pullmantur tried to develop the French cruise market. In 2008, working with Royal Caribbean which had acquired Pullmantur, they launched Croisières de France, a new cruise brand using the 1981-built Europa renamed Bleu de France. The cruise ship was sold in 2011 but they replaced her with other ships from Pullmantur before disbanding the brand in 2016.
Other cruise lines including Ponant are based in France but market their ships internationally. The new cruise line will be predominately marketed in France and the on-board operations will be French-speaking. Details on the first cruise and the itineraries are expected to be announced on September 6.
ANNAPOLIS, Md. — The U.S. Navy on Tuesday welcomed its third Overlord unmanned surface vessel into the fleet, as the service prepares to ramp up its USV experimentation at sea and ashore.
Mariner, built by Gulf Craft in Louisiana and managed by prime contractor Leidos, was delivered in March and christened Aug. 23 at the U.S. Naval Academy. It is already outfitted with a government-furnished command-and-control system, a virtualized Aegis Combat System, an autonomous navigation system and more. After a few more upgrades and testing, it will head out to California and begin operations in fiscal 2023, the Navy’s program executive officer for unmanned and small combatants, Rear Adm. Casey Moton, told reporters during a tour here.
Mariner’s sister ships, Nomad and Ranger, recently participated in the Rim of the Pacific naval exercise in Hawaii. The addition of Mariner to the USV fleet will add both volume and new capabilities as the Navy tries to learn more about operating unmanned craft and decide what the future hybrid manned-unmanned fleet ought to look like, Moton said.
The Navy’s test plan includes both land-based and at-sea testing, he said. During land-based testing, the Navy can more easily install new items, can run tests for longer durations and in more controlled conditions, and can update systems more easily as test results highlight needed fixes.
At sea, though, he said “you’re in the dynamic marine environment, with the ship moving around, and in a corrosion environment, and watch standers having to move around … dynamic loads and all kinds of things. There is absolutely a place for both.”
The Navy will ultimately have seven USVs to experiment with at sea: Nomad, Ranger, Mariner and fellow Overlord USV Vanguard, which is under construction at Austal USA with prime contractor L3Harris; as well as Medium USV prototypes Sea Hunter and Sea Hawk, which also participated in RIMPAC, and a third medium-size ship on contract with L3Harris.
Moton argued it’s important to have so many at-sea test platforms because of the scale of testing the Navy is trying to do, working through different vendors’ systems for perception, autonomy, machinery control and more, as well as testing out a number of potential payloads.
A new feature built into Mariner will also allow for some unique concept of operations testing at sea: the virtualized Aegis Combat System will actually allow Mariner to control another USV, Moton said.
“Now we can take two of our USVs and go out and do multi-vessel ops and control and not necessarily have to take a [destroyer] off of actual fleet operations to go do that. It gives us that ability to just get there that much more quickly,” he said.
A program official added during the tour that the USV Division 1 staff in California, who could in the future operate USVs from an ashore unmanned operations center or from aboard a Navy ship such as a destroyer, could actually use Mariner as a training vessel, embarking it as they would a destroyer and controlling another USV manually from Mariner’s combat system. USV Division 1 officials were able to collaborate with destroyers during RIMPAC, though access to such warships for experimentation is far from the norm because of busy training and deployment schedules. That’s why officials hope Mariner could serve as something of a training ship for the division staff as they learn how to employ a USV from a ship at sea.
As for the land-based testing, Moton said the Navy is moving ahead with industry-led testing of engines for unmanned vessels even as its official USV land-based engineering site is under construction at Naval Surface Warfare Center Philadelphia. L3Harris has an MUSV plant in Camden, N.J., that would be transitioned to the Navy facility just across the river if the service decides to move ahead with those types of USVs. The Navy is currently committed to a large robotic-ship program (LUSV) and is still weighing the value of medium-size ships against the capabilities that small drones in large numbers could bring.
On LUSV, a variety of potential engines are being tested ashore by their various vendors — which Moton said is a good thing for technology development and for keeping the program competitive — and that work will also be moved to Philly when the new test center is ready.
Despite all the testing taking place, Navy officials during the tour said commercial industry has done quite a bit of work already to mature autonomy systems on ships. In the case of Mariner’s parent design, autonomy features were optimized for the fast supply vessel to bring people and materials to oil rigs with a crew of just six on the 194-foot boat.
Because of the pre-existing emphasis on autonomy and redundancy to support a small crew, the ship was already designed with five water jets, each with their own engine and drive train and an ability to switch between them if one experienced a problem. The Cummins engines were built with an option that avoids the need for periodic oil changes — something that would otherwise prevent USVs from operating months at a time without a crew — using a system that automatically burns off the old lube oil and adds in new lube oil.
The Navy went further and added in a whole web of cables that connect sensors to ship systems and enable the machinery control system to autonomously monitor hull, mechanical and electrical systems and shift between redundant systems when needed.
The large unmanned surface vessel Ranger transits the Pacific Ocean on June 22, 2022, ahead of the Rim of the Pacific exercise in Hawaii. (MC1 Tyler Fraser/US Navy)
Brian Fitzpatrick, the principal assistant program manager for USVs at the unmanned maritime systems program office within PEO USC, said the Navy had collected 400 terabytes of data from Nomad, Ranger, Sea Hunter and Sea Hawk at RIMPAC and that his office would spend the coming months parsing through that data to understand both system performance at sea and to refine what data they wanted to continue collecting in the future.
Fitzpatrick said the Navy was looking forward to the delivery of its final OUSV prototype, Vanguard, which takes Mariner’s parent design and scales it up to a 205-foot design. Because the vessel is larger, it can hold more fuel and therefore gain even greater range, and it can haul even heavier payloads. Fitzpatrick said Vanguard would push the limits of what a vessel of this size class could do for the Navy.
The program-of-record LUSV’s design hasn’t been finalized yet but will certainly be larger than Mariner and even Vanguard. Fitzpatrick and Moton said all the testing at sea and ashore will apply equally to a future LUSV and a potential MUSV from an engineering perspective. From a concept of employment perspective, the Navy knows just what it wants from LUSV — to serve as an adjunct missile-launcher — but testing will help inform whether hauling around sensors and electronic warfare packages on a vessel of this size is worth the price tag.
“I think it’s completely healthy for the top levels of the Navy to be having that question about what a hybrid fleet, manned-unmanned, looks like. And we are essentially providing the data and the feedback on [concepts of operations] that’s supporting that discussion,” Moton said.
On August 15, at the Depot of PT Berlian Jasa Terminal Indonesia (PT BJTI) Tanjung Perak, Surabaya, Imam Kastiawan died when a container fell off the crane and hit the truck he was driving.
The incident occurred during loading activities on the Green Samudra ship, which was about to head to Makassar from Surabaya. The lock on the reach stacker malfunctioned and the container fell on the truck driven by Imam, who was declared dead after being taken to the PHC Surabaya hospital.
The Indonesian police are investigating the incident, and PT BJTI will be carrying out an internal inquiry too. PT BJTI’s head of public relations, Budi Hermawan said to the press: “We express our deepest condolences to the victim and ensure that we take full responsibility for this incident. Together with the police, we will find out the cause.”
This incident is the first of its kind in Indonesia. In an interview with Maritime Fairtrade, Director of the National Maritime Institute (NAMARIN), Siswanto Rudi, said work safety of port workers has to be further improved. After this tragic event, Siswanto said “all parties must find out the causes, implement safeguards and ensure nothing similar will happen again. This incident may have occurred due to negligence. It could be due to the crane operator’s negligence or equipment problems.”
According to Siswanto, to further improve work safety for port workers, a number of important aspects needed immediate attention from port operators and regulators, one of which is the issue of equipment worthiness. He said: “At the port, sometimes there are equipment which are leased from third-party vendors. And this is a vulnerable point because there may not be strict monitoring of whether vendors routinely inspect and maintain their equipment.
“This same principle also applies to those who are leasing the equipment, who do not have their own maintenance program. So far, there is also no oversight from the regulator. There has to be a dialogue among the government as regulator, port operators and vendor who owned the equipment. Importantly, there has to be a strict safety protocol where each party has to follow.”
Special attention must be given to the licensing of crane operators, said Siswanto. All crane operators must be licensed in order to work in ports and terminals and there must be strict enforcement to ensure their licenses are genuine and up to date. Also, he added: “The presence of a supervisor to monitor whether the crane has been completely locked and in which direction the crane will move is also very necessary.”
Siswanto said the Indonesian government, as regulator, has a responsibility to make sure that all safety regulations are followed. For example, a container terminal is regulated by the Regulation of the Minister of Manpower of the Republic of Indonesia number 8 of 2020, which applies to cranes, trucks, and lifting and transportation equipment. Under this law, crane operators are required to have a Class 1 operator K3 license above 15 tons. In addition, during the loading process, no one is allowed in the lifting zone.
Another regulation is the International Ship and Port Security Code (ISPS Code) under IMO (International Maritime Organization) which specifically regulates activities and lays out steps that must be taken in tackling potential hazards at sea and ports, including the maintenance of port support facilities.
After signing and ratifying the ISPS Code through KEPPRES No. 65/1980 regarding the ratification of SOLAS 1974 which was then followed by the Decree of the Minister of Transportation No. KM 33/2003 concerning the enforcement of the 1974 SOLAS Amendment concerning the Security of Ships and Port Facilities in the territory of Indonesia, port operators are obliged to comply with this regulation.
In the ISPS code, each port is required to have a Port Facility Security Officer, beside the security aspect, a big part of the job scope involves ensuring and improving the work safety of port workers.
Ukraine and Poland commit to cybersecurity collaboration.
The Ukrainian State Service of Special Communication and Information Protection, along with the Ministry of Digital Transformation, has announced they have signed a cybersecurity memorandum of understanding with the Council of Ministers of the Republic of Poland. In the midst of the Russian invasion of Ukraine, Poland has come to Ukraine’s aid to defend against Russian cyberaggression, and the agreement solidifies this partnership, as well as a commitment to sharing cyberintelligence. Mykhailo Fedorov, Vice Prime Minister and Minister of Digital Transformation of Ukraine, stated, “The first world cyberwar is ongoing. Therefore, joining efforts and exchanging practices is a logical step in this area. With Poland, we have not only a common physical border, but also a joint problem in cyberspace, where we experience the same kind of attacks. I am sure that together we will become stronger and more effective.”
Togo at center of cybersecurity in Africa.
The new African Centre for Coordination and Research in Cybersecurity has been established in Lomé, the capital city of Togo, with the goal of unifying the cybersecurity efforts of individual African governments. Quartz notes that cybercrime on the continent is growing exponentially, signaled by a 438% increase in phishing scams in Kenya last quarter and a total of 81 million cyber attacks in three months in Nigeria, South Africa, and Kenya combined. Created as a partnership between the Togolese government and United Nations Economic Commission for Africa (Uneca), the Centre will allow the countries’ lawmakers, police, and security agencies to share cyber intelligence and monitor malicious cyberactivity. With its National Cybersecurity Agency and a Personal Data Protection Authority, and as one of the few countries to ratify the African Union Convention on Cybersecurity and Personal Data Protection of 2014, Togo has demonstrated it’s ahead of the curve when it comes to securing African cyberspace. Cina Lawson, Togo’s digital economy and transformation minister, explained, “We aim to become a significant digital hub in Africa. Our partnership model with the private sector is an innovative approach that we want to showcase to inspire other countries for safer cyberspace on the continent.”
Cybersecurity at sea.
The US Area Maritime Security Committee (AMSC) released a report detailing the challenges posed by the ever-changing threat landscape, and Safety4Sea provides an overview of their findings. The COVID-19 pandemic increased reliance on virtual meeting spaces and platforms, exposing the intel shared via these methods to new potential security threats. Other challenges include the high demand for experienced cybersecurity professionals, insufficient incident reporting requirements (and enforcement capability), a flood of cybersecurity alerts and warnings from multiple agencies, and the unique threat posed by Unmanned Aircraft Systems (UASs). AMSC recommended the CG Cyber Command and the Office of Port and Facility Compliance implement a unified communication standard for the distribution of cyber alerts. Other suggestions include establishing cybersecurity training for AMSC members, clarifying the role of the Coast Guard in cyberincident response, and developing mitigation strategies for emerging tech like 5G. A revamp of the Coast Guard’s internet portal Homeport 2.0, as well as improved training and a comprehensive user guide, were suggested to make the portal easier to navigate. And regarding UASs, AMSCs recommended the Coast Guard and Department of Homeland Security support the development of legislation to provide law enforcement the tools necessary to prosecute cases where maritime infrastructure and assets are at risk.
CONTAINER throughput at saudi ports rose 5.5 per cent to 642,300 TEU in June, compared to the 608,800 TEU in June of last year.
Transshipment volumes were up 4.2 per cent to 244,600 TEU, compared to the June 2021 total of 234,700 TEU, reports UK’s Seatrade Maritime News, citing statistics from the Saudi Ports Authority (Mawani).
Saudi ports saw a 13.6 per cent increase in vessel calls in June, with a total of 1,126 vessels, while vehicle imports increased by 26 per cent to 74,000. Total food volumes reached 1.6 million tonnes..
‘The development plans launched by Mawani to enhance the operational efficiency and upgrade ports’ capabilities resulted in a 56 per cent increase in general cargo volumes to reach 791,000 tonnes, whereas liquid bulk cargoes increased 32 per cent to reach 15.5 million tonnes,’ Mawani said.
King Abdulaziz Port, Dammam, managed and operated by Saudi Global Ports (SGP), set a monthly container throughput record, handling 188,578 TEU in June, beating the previous record set in 2015.
‘The record-breaking performance comes on the back of soaring import and export volumes, which boosted the port’s productivity while reaffirming its unique operational and logistical prowess in line with the objectives of the National Transport and Logistics Strategy (NTLS) to raise logistical output and boost container throughput in Saudi ports,’ Mawani said.
Total throughput at Dammam Port was 1.77 million TEU in 2021, a significant increase on the 2018 figure of 1.54 million TEU. However, transshipment volumes were just under 5,000 TEU in 2020, rising to almost 12,000 TEU in 2021.
Global Maritime Services (GMS) is a service provider for the LNG/FSRU industry. Its expertise includes LNG transport and FSRU import terminals, marine operations and assurance, vessel operation management, etc.
On 19 August, GMS announced the launch of its new Marine Department, a marine advisory service for the offshore oil and gas sector. According to the company, its customers will be able to take advantage of its expertise to secure their FSRUs and LNG sector ventures.
The European Commission’s RePowerEU initiative recommends the diversification of gas supplies from other international partners in case of a disruption of Russian gas supplies in the near future. Energy providers are keen to find natural gas solutions that can swiftly fulfill the demand for power generation.
This is where FSRUs come into the picture, as they are an accelerated LNG import solution. Building shore-based LNG import terminals can take years, whereas FSRUs are fully operational within months. Compared to onshore LNG terminals, FSRUs also require relatively low investment to start operations. Ultimately, FSRUs provide new entrants into the LNG import market with a fast-track solution to cater to their energy needs.
GMS director Igor Tončić said: “This is truly a challenging time to be involved in the regasification and LNG import domain. Due to the regional energy supply insecurity, there is an increase in requests for FSRUs, new and converted, and each energy solution comes with its own unique set of advantages and challenges.”
“Not one FSRU project is like another and the pathway to a successful FSRU project involves a complex mix of factors–from satisfying regulatory requirements for swift approvals to identifying risks in the commissioning or start-up phases,” addedTončić.
According to GMS, its Marine Advisory Team can also provide support for a wide range of inspections; from the management system and environmental system audits, assistance with port-state control inspections, vetting and tanker management, and self-assessment inspections, to navigation, safety, cargo, and mooring equipment audits.
The ten-person team includes a Marine Regulatory advisor with insight into the latest regulations and legislation affecting the maritime sector.
Pests can cause havoc onboard ships. They spread diseases and pose a risk to seafarers’ health and affect the operation of ships. Pest control is an important function but seldom given enough credit. According to Sogol, a pest controller working onboard a Floating Production Storage and Offloading (FPSO) ship operating in the Java Sea, Indonesia, his profession is often forgotten because people often assumed wrongly that there is no pest on ships.
Sogol, pest controller working onboard a FPSO.
Sogol said it is a myth that because pests are found on land and as ships are travelling the high seas, pests could not find their way there. Pests find their way onto ships by hitching a ride on luggage, livestock, food supplies, birds and humans. When they get in, they make their home in enclosed areas such as ducts, ceilings, voids, and vaults. When ships get infested, their enclosed nature help in the spread of illnesses and diseases. Common pests include cockroaches, rodents, bed bugs, termites, silverfish, flies and mosquitos.
Sogol is the only pest controller working on the FPSO and is responsible to keep both the 73 crew members and the ship safe from pest infestation. He said a dangerous pest he encountered is the tomcat, a poisonous flying beetle-like insect.
Photo credit: iStock/Anjas Rohendi. A type of tomcat.
Sogol said: “Usually, the tomcat is attached to the outer side wall of the ship and on other exposed part. There is a tomcat season every now and then and there is usually a large swarm of tomcats. During this time, I would work hard to kill them before they managed to enter the interior of the ship.
“The flying tomcats are helped by the strong wind which carried them to the FPSO. When bitten by a tomcat, the symptoms are more or less the same as getting herpes. Tomcats will release a venomous toxin and when in contact, it will cause acute skin irritation. The skin will feel hot and itchy and red rashes and blisters will soon appear.
“It is not easy to replace crew members when we are in the middle of the ocean. I try my best to prevent tomcats from attacking the crew. If bitten, wash the wound immediately, apply cold compress and then aloe vera cream. If possible, seek medical help.”
In Indonesia, pest control on ships is regulated by the Occupational Safety & Health Act 1994 (OSHA), Food Act 1983 & Food Regulation 1985, and Factory and Machinery Act 1967. Getting a pest controller license is not easy and there are a prescribed set of training and requirements he has to fulfil first, Sogol said. His license, Pesticide Applicator License/Assistant Pesticide Applicator License (PAL/APAL), is certified by the Ministry of Health.
To stay on top of his profession, Sogol has to regularly attend ongoing training programs including the Skills Recognition System (NSRS). He also has to undergo on-the-job training and be certified by the Institute of Technical Education (ITE).
When on duty, Sogol has to strictly follow regulations like the Environmental Protection and Management Regulations (Hazardous Substances), the Hydrogen Cyanide (Fumigation) Act 1953, the 2010 OSH Regulations (Uses and Standards of Exposure to Hazardous Chemicals for Health), and the Environmental Quality Act 1974.
Miami-based residential cruise ship company Storylines has signed a construction contract for its first ship with the Brodosplit shipyard in Split, Croatia.
Brodosplit, part of the DIV Group, has commenced the engineering phase of the 753-foot (229 meters) vessel which will have 547 private residences on board. To be named MV Narrative the vessel will be the first residential ship powered by liquid natural gas propulsion (LNG).
“We are thrilled to be partnering with such a reputable European yard with a long history of delivering high-quality passenger ships,” said Storylines CEO Alister Punton. “Our resident owners can hardly wait to move onboard the state-of-the-art ship so they can travel the world from the comfort of home.”
The residential cruise ship will be different from a vacation cruise ship in that it will be purpose built for residential life at sea. It is intended to be a floating community and includes a post office, school, library, hospital, bank, pools, office spaces and 20 dining and bar venues.
It will feature what Storylines says will be the largest wellness center at sea with a 10,000-square foot area for the spa, gym and anti-aging clinic. Amenities will also include a waterfront marina with personal watercraft, bowling alley, hydroponic garden farm and an open-air fitness deck with racquet sports, yoga sun deck and running track.
Delivery of the ship is targeted for 2025 and total sales revenue from the 547 residence project are valued at $1.5 billion.
“We are pleased to be building this innovative ship with Storylines,” said Tomislav Debeljak, president of the board at Brodosplit. “We always enter into projects that bring development to the industry and include new technologies. This vessel is equipped with various energy saving features, has dual fuel powered engines (fuel oil and LNG) and will be optimized to have the lowest possible emission of harmful particles and gasses. There are many new green technologies and ship systems we are pioneering, which makes this a very exciting project for us.”
Pricing of the residences on the ship ranges from $1 million to $8 million for the lifetime of the vessel with a limited number of 24-year leases available starting at $647,000.
How long will that “lifetime of the vessel” be? A Storylines blog post says that one reason the company opted for a newbuild, after first looking at various conversion options, was “longevity for 60 years, opposed to 24 years on an older ship.”
Lockdowns, stranded containers, ships waiting several weeks for a slot outside the world’s biggest terminals—that’s been the reality of global trade since early 2020.
The pandemic triggered record consumer demand, overwhelming supply chain capacity, creating port congestion and causing a lack of truck drivers and warehouse workers. Supply chain congestion issues and international sanctions have pushed the already disjointed supply chain beyond its limits. As a result, companies across the globe have dealt with delayed goods and empty shelves.
The pandemic created a massive increase in consumer demand for electronics, furniture and building materials, which accelerated our customers’ online presence and need for omnichannel solutions. As a result, more than $38B USD worth of bookings are now placed through the Maersk.com platform, which makes it one of the world’s largest B2B websites. This monumental shift made it apparent that the global supply chain needed to be restructured to streamline the flow of goods to consumers.
That’s why we’ve taken a huge leap in our digital transformation over the last 12 months, putting us well ahead of our planned progress.
Our digital transformation enables us to better serve customers by optimising and integrating their supply chains. It also releases resources in our customers’ supply chain, so they can focus on their business and create greater value for their commercial pipeline and shareholders—instead of spending time on supply chain management.
Today, customers can book a container with a few taps on their smartphone or tablet. This was unheard of a couple of years ago—when confirming an order took several touchpoints via email and phone.
A breakthrough
Covid-19 has also changed the priority of logistics in the business community. Before the pandemic, supply chain management was a question of “just in time,” while stock management evolved around having just enough supplies to match demand. The trend was a cost-cutting manoeuvre, but ultimately made companies vulnerable to the slightest disruptions in their porous supply chains like bad weather, accidents and the pandemic.
Supply chain management has historically been a task shared between procurement, logistics and even finance. Besides an extensive amount of time and lengthy decision-making processes, this also led to a lack of flexibility, agility and manoeuvrability in the supply chain.
The consequences of Covid-19 and other unforeseen events over the past two years have turned the supply chain upside down. Today, security of supply and stock management are amongst the main priorities in executive management and are part of quarterly reporting in most companies. Supply chain strength and confidence shapes earning potential and the response of financial markets.
Even though the business community has embraced supply chain digitisation to a large extent, there’s still a lack of artificial intelligence and data utilisation.
There’s a good reason for that. Operating a manual compounded supply chain makes it almost impossible to collect relevant data, since it’s spread across up to 30 different parties. On top of that, collecting data is an immense task when the ability to make fast decisions is crucial to secure the flow of goods.
At A.P. Moller – Maersk, we collect and receive feedback from more than 100,000 customers which gives us unique insights into their needs and movements of global markets.
We’re investing massively in the development of new digital tools and products that better integrate logistic solutions and makes it easier for our customers to reroute or find alternative means of cargo transportation when supply chain disruptions occur.
The current widespread congestion and lack of capacity has underpinned the need for rethinking and optimising global supply chains. The rise of e-commerce and online shopping, where consumers expect day-to-day delivery, has increased the need for a broader and longer-term relationship between logistic companies and their customers. Consumers have a choice, which means they will shop elsewhere if they don’t have visibility or an ETA when they shop online.
That is why we’re in the middle of a historic breakthrough. One as big as the containerisation of the shipping industry in the 1960s.
Cultural transition
The new reality demands a lot from stakeholders across the industry. It’s no secret that shipping and transportation has long been branded as conservative and analogue. Shipping a container can involve 100 different documents!
Six years ago, A.P. Moller – Maersk embarked on a new journey where we divested our energy companies to focus on becoming the integrator of logistics. The process included rethinking our culture and starting new ways of doing business.
Since 2016, we’ve more than tripled our number of tech employees. Many of them have backgrounds in the start-up community or in some of the world’s largest, most successful tech companies. Back in the day, tech was a support function in Maersk, but today it’s an integrated part of daily business.
The pace of technology is reshaping the world. Every company needs to keep up. Just like our customers, we need to embrace change and digitisation to avoid falling behind. We’re well on our way, but we’ve only just begun the journey. As the world’s leading container and logistics company, we’re creating a global supply chain that operates efficiently at scale and can handle inherent disruptions that will always surface in unexpected ways.
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