DIGITALISATION IN SHIPPING AND

LOGISTICS

INTRODUCTION

The International Maritime Organization (IMO) supports the implementation of automated electronic data exchange from ship to ship and ship to shore to increase efficiency, safety and security of maritime navigation and communications.

Digital technologies continue to transform industrial processes all over the world. Shipping and logistics are no exception

The benefits in efficiency

GPS navigation, real-time weather data feeds as well as smart containers are just some of the technologies redefining the movement of goods.

In future, ships will inform ports of what goods are in which containers on board long before docking

Allowing better planning and faster unloading

Containers equipped with sensors and radio-

frequency identification (RFID) transponders will

be registered and tracked for optimized transport

and distribution.

Perishable goods, for example, will be

monitored and delivered before spoilage.

Telematics systems and databases in freight

trucks will help reduce waiting times and

bottlenecks in ports , by keeping drivers informed

of precisely when and where containers will be

unloaded.

The benefits in energy savings

Ship operation and maintenance are also affected by the technological advances.

On-board machinery and equipment can be fitted with sensors and transmitters that report performance and early signs of malfunction via Wi-Fi to the ship’s central computer.

Real-time updates on weather systems, wind and ocean currents will enable captains to readjust navigation for lower energy consumption.

The benefits in security

Risks

While real-time data on goods in transit will allow a better overview – where a given package or container is at what time, what goods it contains, its condition, has it been tampered with – yet these large volumes of precise data could also be exposed to cyber-attacks and accidental data leakage.

Container ships reliant on digital navigation systems could potentially be manipulated to go off course or even run aground.

Alongside cyber and property risks, exposures include liability, business interruption and extortion.

Whether caused by criminal intent or by accident, a single system failure can have extremely far-reaching consequences in an interconnected digital environment.

It will become more important than ever for insurers to dedicate resources to risk management as well as to understand and model accumulation risks.

In addition, active loss prevention focusing on digitalisation in marine insurance will take on a greater role. Shipping and logistics companies, software and hardware manufacturers as well as insurers will need to work together to ensure maximum data security.

Marine liability issues can be expected to become considerably more complex. Especially in shipping through different national waters and jurisdictions. Reliance on technology and software also raises questions

who is responsible for a given failure or accident? The prospect of unmanned operation further complicates the matter. Here again, the risks are moving targets and the insurance industry must follow the technological developments and legal decisions closely.

Knowledge gathered in other lines of business, specifically cyber risks, can and must be applied in the marine sphere.

2. AUTOMATED ELECTRONIC DATA

EXCHANGE

Automation of ship reporting functions has taken a big step forward with two important decisions by IMO.

One concerns the introduction of the electronic exchange of information as a universal, binding requirement for the purpose of facilitating the business of international maritime traffic.

The other concerns the standardisation and harmonisation of ship reporting in support of e-navigation developments aimed at simplifying the communication of navigational safety information between ship and shore and its harmonised display on ship bridge equipment.

IMO’s ongoing work on standardisation and harmonisation of ship reporting, which is within SOLAS Regulation V/11, involves the revision of the associated guidelines and criteria for ship reporting systems. It concerns one of the five selected priority tasks under IMO’s four-year work programme (2016-2019) on the implementation of e-navigation

The latter type of information should not unduly burden ship bridge personnel, and it should preferably be transmitted using standard electronic tools such as internet, e-mail and electronic data interchange (EDI).

South Korean delegates raised the possibility of the maritime cloud providing the communications framework to support the seamless exchange of electronic data for ship reporting systems.

3. SMART CONTAINERS

Today there are more than 470,000 refrigerated “reefer” containers, carrying anything from bananas to pharmaceuticals to sashimi-grade tuna.

The system enabling this is RCM, which stands for Remote Container Management.

It’s simple technology – a modem, GPS, wireless SIM card and satellite link deployed on a global scale, and it is changing the concept of supply chain visibility, and the costs and opportunities associated with

If you think about a basic supply chain, it stretches across the world. It involves trucks, terminals, depots, an ocean carrier and time. There is no end-to-end visibility and very little control, which for refrigerated cargo is very risky.

perishable commodities are time sensitive and require precise temperature and atmospheric conditions.

If the power goes off on the reefer or a malfunction occurs and it is not discovered quickly enough in the terminal, on the truck or ship, an entire container of goods can be spoiled.

As a result, shipping companies spends thousands of hours and about USD 200 million every year on physical inspections of its containers before customers use them and continuous monitoring of their functionality during a journey.

And since people make mistakes and accidents happen, shipping companies also pays millions in claims to customers for damaged cargo – most of which is related to the power on the reefer being off for too long.

With RCM, all of that changes. Instead of counting on human eyes and hands to inspect and monitor reefers all over the world, the technology does it instead – removing much of these costs, along with many others including the danger associated with people walking among container stacks and handling electricity.

If the conditions inside the container change or the reefer malfunctions, an alarm instantly appears on the screens of the RCM teams on shore. In the same instant, the alarm, which describes the problem and the level of urgency, also goes to the closest local repair vendor.

With the physical preparation, handling and monitoring of these containers every hour of every day for a supply chain journey that can last more than a month. This technology gives us total visibility into our operations, our suppliers, performance and our customers, supply chains, in real-time. That’s a powerful capability, particularly for sensitive perishable cargo.

3.1 HOW DOES RCM WORK?

It starts with the hardware mounted on all smart containers. A GPS allows global tracking and a modem and SIM card enable the reefer’s atmospheric conditions and power status to be collected, stored and shared.

A satellite transmitter mounted on vessels picks up the data streaming from the modem and sends it real-time to a satellite that beams it back to the RCM teams located around the globe.

Technology and the data flow and capture it enables, whether it is “smart” containers or the development of a comprehensive e-platform for customers, is driving Shipping companies next phase of operational and commercial excellence.

Individual sensors on ships already provide valuable insight. One example is bunker consumption flow metres, approximately 3,000 of which will be installed on 370 vessels by the end of 2017. These metres measure fuel consumption and relay this data in real-time to the vessel bridge and to shore, enabling shipping companies to continually optimise the fleet’s operational performance

Shipping Company’s Online Portal into a comprehensive online shipping platform is well underway. The majority of customers say they want a predictable, self-service type process for handling their shipping needs. An online platform will also reduce the millions of phone calls and emails related to transaction support that companies handles, enabling it to increase the time it spends on developing business. The data collected will also provide a rich source of insight into customer behaviour

The collection and analysis of the data the business produces across its global footprint are also increasingly important Companies. Here, a growing team of data scientists in the Advanced Analytics team are using mathematics and computer programming code to save Companies millions by further optimising empty container flows, developing more accurate container supply and demand forecasts, and providing insight into customer behaviour and profitability.

4. MODERN SHIP AUTOMATION AND CONTROL SYSTEM

Onboard and shore-based application services that use data from navigation, machinery, and other onboard equipment, including the ones listed below, are increasingly common.

Weather routing

Optimum trim

Performance monitoring

Engine monitoring

Condition monitoring

Power plant energy management

Remote maintenance

Automation and control system is a fully integrated systems covering many aspects of the ship operation that includes the propulsion plant operation, power management operation on the auxiliary engines, auxiliary machinery operation, cargo on-and-off-loading operation, navigation and administration of maintenance and purchasing of spares

4.1 Propulsion (Main Engine) and Power (AuxiliaryEngines) Monitoring & Control

Monitoring and control of the ships propulsion and power is essential for its efficiency and safety and there are many systems and parameters to consider like: fuel consumption, combustion temperature, engine temperature, diesel engine safety and start/stop, generator voltage and frequency control, generator load in KW and %, load control, torque, heavy consumers logic, control of diesel electric propulsion, thrusters monitoring and control etc..

4.2 Auxiliary Machinery Monitoring and Control

Auxiliary machinery monitoring and control covers several systems like: main sea & fresh water cooling system – pumps, system pressure, temp. etc., Potable and fresh water control, Air compressors, Bilge & sludge control – Tank level, pumps, Fuel oil system – Tank levels, temp., viscosity, flow, purifiers, heaters etc., Other cooling systems, Boiler/steam system – pumps, valves, pressure temp. etc., Air Conditioning, ballast water treatment, exhaust gas treatment equipment.

4.3 Cargo & Ballast Monitoring & Control

For safe on and off loading of cargo, especially on tankers, this process is closely monitored and many times incorporates functions like: Level gauging, Control of cargo pumps, Valve control, Ballast & ballast pump control, Heeling control, Remote monitoring of temperature, pressure, and flow.

4.4 Condition based monitoring

In order to further improve the ships efficiency many equipment manufacturers are looking into feeding the main control and monitoring system with opportunities for condition based monitoring. This would further improve the possibilities of preventing breakdowns on board.

Auto

Temperatures of lube oil, JCW, exhaust gas, etc. are measured.

Pressures of lube oil, JCW, fuel oil, and starting air etc. are measured.

Flow of fuel oil is measured while running.

Tank levels of Heavy fuel oil, diesel oil, and lube oil are measured.

For measuring the parameters we make use of the transducers, in turn sending the input signal to the automatic control system.

CYBER CRIMES AND SHIPPING

INDUSTRY

Savvy criminals around the globe are exploiting cyber vulnerabilities to perpetrate a wide range of crimes from longstanding physical ship-related dangers like piracy and smuggling to more recent financial-related frauds like the diversion of payments.

The challenge for ship owners is even more complex because cyber criminals are targeting diverse facets of the shipping industry. For example, there was a well-documented case of drug smugglers subverting an IT system at a major port in order to facilitate the smuggling of contraband in containers.

The rise of targeted piracy and drug smuggling reflects how criminal organizations have become more sophisticated. They will seek detailed intelligence on potential targets and will use modern technology to source information and data to assist in their planning and execution of criminal ventures. Drug traffickers, drug and people

While shipping and logistics companies are expert at maritime transport, they may not have the same experience with IT security. It will be essential to invest time, effort and capital into security measures to ensure these cyber risks are appropriately managed. Companies leave themselves open to great danger when they do not take into account all the potential risks and loopholes when designing and implementing their company-wide cyber security strategy.

Modern maritime ships are considered a privileged target for hackers and pirates that are increasing their pressure on the Maritime Shipping Industry.

Modern maritime ships are often monitored and controlled remotely from shore-based facilities thousands of miles away to ensure efficiency. This creates a new platform for hackers and pirates to conduct targeted cyber attacks on ships

5.1RISKS POSED BY TECHNOLOGY

Over the past five decades, computer controls have been integrated into innumerable operational and business processes across diverse industries, including the shipping industry, resulting in considerable improvements in safety, accuracy and profitability. There is another side to the digital revolution, however. In the absence of appropriate protection and loss prevention measures, the increased reliance on technology for even the most basic operations can leave a business exposed to business

Cyber security threats today are increasing in variety, frequency and sophistication — be it from a Trojan USB stick that introduces malware aimed at acquiring sensitive commercial information… an email with detailed vessel itineraries sent to a large group of unknown people… the full-scale subverting of a company’s IT system… or the potential compromising of the Automatic Identification System (AIS) and Electronic Chart Display and Information System (ECDIS) on board ships. The number of potential risk scenarios is significant and keeps growing. Fraudsters employ whatever hacking technology works, often tailored to specific targets of opportunity.

Some organizations may be more at risk than others depending on the type and value of data they store. However, experience has shown that hackers will generally gravitate toward the low-hanging fruit of victim networks that are more easily breached. As such, it is essential that companies prepare for and expeditiously address identified vulnerabilities.

Cyber threats in the shipping industry can be divided into five major types, Threats to

Ships and safe navigation

Satellite communication

Cargo tracking systems

Marine Radar systems

Automatic Identification systems

5.2 RISKS POSED BY INSIDERS , CARELESSNESS OR INTENTIONAL?

5.4 HOW TO GUARD AGAINST THE RISK

There are warning signs that an employee might be committing cyber crime. Some of these signs include working odd hours without authorization; disregarding company policies about installing personal software or hardware; taking short trips to foreign countries for unexplained reasons; buying things they can’t afford; and taking proprietary or other information home in hard copy form and/or on thumb drives, computer disks or email.

However, you can’t let your guard down when an employee leaves the company, voluntarily or involuntarily. Strict termination procedures should be in place to ensure that all network access privileges are terminated immediately.

Likewise, just as a company employs security guards to monitor the parameter of a building, to check IDs, to log who enters and leaves, to watch security monitors, or to implement the ISPS Code regulations on board a vessel, the same precautions should be taken for data.

For example, if an employee is logged in from her work computer and the same credentials are used to log in from an external location, a red flag should immediately appear. Similarly, if an employee is uploading or downloading a large amount of data for the first time, those responsible for data security should be alerted.

5.5 OTHER SECURITY RECOMMENDATIONS INCLUDE:

1. Educate staff about the need for IT and information security. Develop guidelines for the use of email and safe custody of sensitive information. Consider who actually needs to be copied in to emails and who should have vessel itineraries. Also, where possible, avoid sending messages to third party “group email” addresses.

2. Establish clear guidelines on the custody of key information. Pirates and smugglers often appear to act on the basis of precise information as to vessel movements and cargo on board.

3. Integrate elements of both physical and logic security to protect your data. These should also be fully integrated into business continuity/disaster recovery plans and regular staff training.

4. Secure your supply chain. Suppliers and contractors are a risk because often, they have intimate knowledge of your operations as well as access to key information systems. Alternatively, they can unwittingly introduce malware where their systems intersect with yours.

5. Establish the extent of insurance required so that your business has specific cyber coverage if required. This may include cover for business interruption and increased costs incurred as a result of any cyber crime event. The use of a third party insurer is one way to mitigate against the financial impact of cyber crime.

6. Conduct a cyber-risk assessment. Engage a qualified expert to conduct penetration testing and a thorough review of security protocols to determine what kind of data you hold; where that data is and where it goes; and what processes are utilized and why. Of the hundreds of such risk assessments Kroll has conducted, there has never been one in which security measures could not be improved.

7. Establish continuous digital monitoring so that your information technology staff

— in conjunction with your teams in legal, operations, marketing, finance, etc. — will know what is going on in your networks at all times. In the event your system is compromised, this will help isolate exactly what happened and when, which in turn will aid in recovery efforts.

8. Work with partners who have knowledge of the risk landscape. It is not enough to take all precautions for current risks; you must also keep up with emerging threats and situations. While you might consider hiring dedicated staff to monitor emerging threats, this can prove not only costly, but also ineffective simply because these resources tend to get compartmentalized or “silo-ed,” such that certain risks can fly

9. Integrate data security/cyber risk with cyber policies and breach response and preparedness plans. The simple fact is that no one is immune to an attack. Unfortunately, without a preparedness plan, decisions can be made that inadvertently compromise evidence and make your job immeasurably harder when trying to resolve matters. These plans should be constantly evolving and rigorously tested.

10. Be actively involved with local law enforcement. This will give your IT team and management an opportunity to engage with law enforcement outside of an event and learn more about current and emerging risks as well as best practices to combat them.

8. WORLDWIDE VESSEL TRACHING BY VESSEL FINDER

VesselFinder vessel tracking system may offer the users chance for vessel tracking in real time totally for free. There is also a new version of the VesselFinder website that was launched with OpenStreetMap interface, which is very simple and easy for the users for AIS Live vessel tracking.

AIS Live ship tracking is a place where people may search for their own vessel, vessel of their competitors, all worldwide ports, latest news for the maritime industry and business.

AIS Live vessel tracking service by VesselFinder is a totally Free internet-based service, that does not require any registration, it is also with really fast interface and quite simple navigation facility.

There is also a modified simple map with little icons for the vessels’ positions which is better for the users for their vessel tracking.

6.1 MAIN FEATURES OF THE VESSELFINDER SHIP TRACKING SYSTEM:

Worldwide coverage

Android and iOs applicaiont

Users may search ships by Name, IMO number, MMSI. It is really easy for the users to enter the vessel details in the search bar and find the desired information.

There is detailed information in the VesselFinder database for over 150k vessels such as: name, IMO, MMSI, ship type, destination, master data, port calls. Following the link, you will see detailed ship info for container ship CMA CGM Wagner.

For all the vessels, users can find the ship positions, track and history.

Latest marine news about incidents, pirates, finance, new vessels, ports, and many other curious events.

With the VesselFinder’s port database users can check for any arriving and departuring vessel

There is also a gallery with vessel photographs.

VesselFinder is very friendly looking, with really simple design and easy for using.

Continuously expanding coverage for ports and vessels.

ALL IN ONE EQUIPMENTS

CONCLUSION

Digital technologies continue to transform industrial processes all over the world. It also transformed shipping and logistics

Huge increase in efficiency, security and energy savings fueled the transformation.

And the same time cyber security risks became an issue.

With the emergence of big data and increasingly interconnected technologies, a second digital revolution is taking shape.

Shipping and logistics are benefiting from these developments.