Is Smart Shipping smart? A

revolu

tion

ary vision

?

Martin Stopford - Smart Shipping 16th September 20162016

17th September 2016Martin Stopford, President CRSL

Smart Shipping will add even more value

to the global economy

Smart Shipping – Why it’s the Smart Thing To Do

Point 1: Shipping’s amazing achievement since 1950 Point 2: Two big challenges – more cargo and climate change Point 3: Marine technology “running out of steam” Point 4: The Smart Shipping toolbox can “fill the gap” Point 5: How smart technology should be put to work Point 6: Vision – a smart shipping transport factory in 2035 Point 7: Other industries are getting smart

11-Oct-16 Lecture 2: Introduction to Maritime Transport 2

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Coal transport cost per tonne (left axis) Oil transport cost per barrel (right axis);

Note: costs based on spot rates for average vessel size at transport date. Tankers increased from 17,000 dwt to 280,000 dwt and dry vessels from 10,000 dwt to 77,000 dwt. Freights are at market prices and are not deflated.. Maritime Economics 3rd Ed, page 74

1. Shipping’s amazing achievement since 1950

The cost of oil and coal freight hardly increased since 1947. Other costs increased 15 times since 1947. For example in 1950 a basic Ford car cost about £400, today it’s over £6,000

11-Oct-16 Is Smart Shipping Smart? 3

The cost of transporting coal & oil by sea

wwww.maritimelectures.com© Marecon Ltd Martin Stopford, President Clarkson Research

2. Two big challenges - more cargo and climate change

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Sea Trade Scenario 1 4 tonnes per capita in 2065 Scenario 2: 1.7 tonnes per capita in 2065

1950-2014 4.8% pa growth

Bulk, specialized, container shipping

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wwww.maritimelectures.com© Marecon Ltd

3. Marine technology “running out of steam”

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Year In which the bulk carrier was delivered

Fuel consumption 60,000 dwt bulk carriers TPD at 14.5 knots in tonnes per day

New 60k dwt

eco-Supramax

28 Tonnes/daySource: based on Clarkson Research World Fleet Register

Martin Stopford - Smart Shipping11-Oct-16 5

4. The smart-shipping toolbox can “fill the gap”

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1. Satellite communication: new INMARSAT Ka band + L band global offer 99.9% reliable communications across the fleet.

2. Telematics: sensors generate data & APIs (application programming interfaces) and declarative queries (EG SQL) manage data and generate reports.

3. Big Data streaming, storage & processing: Key issue volume, velocity, variety, (3 vs). Cloud provides storage. Big data analyse data to establish benchmarks and monitor.

4. Smart phone-style apps : to do specific jobs without big computer systems & provide management information

5. Touch screen technology: simplifies people/computer interaction (e.g. task check lists).

6. Robotics: feedback loops & artificial intelligence allow automation of many tasks (navigation, maintenance etc.)

Railnova information system

Auxiliary sealed & monitored

Young engineer sees future

5. How smart technology should be put to work

• STEP 1: SMART SHIPS use ICT technology to improve the performance of the ship as a production unit, through improved management of operations and the automation of some processes.

• STEP 2: SMART FLEET MANAGEMENT. An even bigger potential source of value added by smart-shipping is through more efficient transport management. If the analogy with the car factory is pursued, smart-fleet- management is like introducing the FLEXIBLE production line.

• STEP 3: SMART SHIPPING-LOGISTICS: in the 1960S shipping promised "door-to-door" transport, but this vision was too challenging for the limited communications technology. Today’s Smart Shipping Toolbox will breathe new life into transport logistics, allowing value to be added in many ways which were impractical or uneconomic previously.

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6. Vision - A Smart-Shipping “Transport Factory” in 2035

11-Oct-16 Martin Stopford - Smart Shipping 8Source: Martin Stopford 2016

DATA READY SHIPS

1. Navigation 2. Operations3. Comms.

Core systems

1. SHIP TEAMS

ship servers managing data, apps & comms

6. SHIPBUILDERS & EQUIPMENT

SUPPLIERS

5.CUSTOMERS WITH CARGO SYSTEMS

7. PORTS & THROUGH

TRANSPORT

TRA

NSP

OR

T FA

CTO

RY

Warehouse(on cloud?)

Company Systems:-1. Host Server & DBs2. Messaging system3. Fleet Intranet 3. Phone system4. LPWAN & APIs5. Telematics Data

3. SYSTEM

S. TEAM

S

1. Support systems2. Process data3. Automation4. Build apps5. Manage stats

1. Technical support 2. Maintenance systems3. Regulatory reports4. Fleet performance5. Personnel management

4. TEC

HN

ICA

L TEAM

S

2. SH

OR

E TEAM

S

Fleet management

Volume, Velocity, Variety

7. Other industries are getting smart

11-Oct-16 Martin Stopford - Smart Shipping 9

1. UPS fleet using it on 48,000 trucks

2. Boeing Airplane Health management (AHM) System pre-installed on planes

3. Google car automates navigation (up to a point)

4. Ford motor company plans to have 20% autonomous cars by 2030

5. Formula 1 racing teams use smart data to improve car performance

F IGURE 5 MCLAREN TEAM AT WORK DURING RACE “EVEN THE SMALLEST, MOST SEEMINGLY INSIGNIFICANT DETAILS MATTER”

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Tanker fleet performance – down 50% since 1973

Efficiency peaked at 50,000 ton-miles of

oil delivered per dwt in 1973/4

Today deliveries

are down to 24,000 ton-miles / dwt

Example – UPS van management system

• UPS has 46,000 vehicles handling 16.3 million packages a day to 8.8 million customers. They store 16 petabytes of data. Savings in 2011 of 8.4 million gallons of fuel, 85 million miles off daily routes.

• For ships bunkering stops, maintenance, cargo handling, voyage scheduling focus etc points

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So what were the first three revolutions?

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• Revolution 2: 1966 - Malcolm McLean launches first international container service from New Jersey to Rotterdam,

• Revolution 1: 1866 – Alfred Holt puts Agamemnon into service, the first merchant ship able to trade globally without using sail

1865 Agamemnon 1st Liner

• Revolution 3: 2016 – Smart Shipping

Early VLCC Built 1973