STEVEDORES & TERMINALS\\\ >> 12


curr en t system, made possible by


the grant, are currently being tested.


North Carolina Ports


The North Carolina Ports web-based MACH Terminal Operating System, which serves as the container tracking system for all container transactions at the Port of Wilmington and the Charlotte Inland Terminal, provides real-time information to registered users over the internet, including container, bill of lading, and booking information. Electronic Data Interchange the


at state-owned transmits a and


operated North Carolina Ports


variety


of information to trading partners, including gate, vessel, and rail moves; actual arrival and departure times of vessels; bookings and manifest updates; bills-of- lading status; freight releases; and U.S. Customs release status received through the U.S. Customs and Border Protection (CBP) system known as


the Automated


Commercial Environment (ACE). Stevedores also transmit vessel stowage information via EDI.


Port of Philadelphia


CBP’s automation efforts have proved key to the velocity of cargo movements and to that


agency’s trade facilitation role at the Port of Philadelphia. “CBP has and continues to automate and streamline the process of inspecting and clearing freight through many programs,” noted Joseph Martella, CBP’s area port director in Philadelphia. “ACE is one of those programs through which all import and export data are reported by industry to more than 47 partner government agencies.”


ACE currently


automates 269 different trade and customs forms. CBP’s national targeting


center analyzes manifest data 24 hours prior to cargo being loaded on board a vessel destined to the United States under the 24-Hour Rule. “Recently, the Import Security Filing Data we required allowed CBP to conduct a more thorough risk analysis,” said Martella. “The additional information has allowed a more timely release of low-risk cargo into the U.S. marketplace.” CBP investments provide


an 87-to-one return to the U.S. economy, according to Martella, through trade costs, ensuring a level playing field for


domestic industry, and


by protecting intellectual property. “We are working to ensure a fair and competitive trade environment where the benefits of trade compliance exceed the costly consequences of violating U.S. trade law,” he added. Also at the Port of


Philadelphia, Holt Logistics Corporation, operator of


the Packer Avenue Marine


Terminal, announced that it has become the first independent port operator in the northeastern United States to conduct a pilot based on a blockchain-based global trade digitization solution developed by the container carrier Maersk and the technology company IBM. The solution, designed to provide transparency and to promote the sharing of information within the global trading system, promises to reduce costs, improve productivity, and speed the delivery of goods shipped around the world. Holt Logistics and


its affiliated company,


Greenwich Terminals LLC, operate the Packer Avenue Marine Terminal in South Philadelphia.


Blockchain Technology


Blockchain technology, essentially a secure distributed database, can serve as a transparent shared network, providing participants end-to- end visibility of a process based on their level of permission. In this use case, each participant in a supply chain ecosystem can view the progress of goods through


the supply chain,


see the status of customs documents, and view bills of lading and other data. Visibility is enhanced with the real time exchange of original supply chain events and documents. The key to blockchain’s


security proposition is that no one party can modify, delete,


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or append any record without the consensus from others on the network. This level of transparency promises to reduce fraud and errors, reduce the time products spend in


transportation and


logistics processes, improve inventory management, and reduce waste and cost. The focus of the project


in Philadelphia is on the development of a highly secure digital that


will allow


ledger system network


users to transparently share information and updates about cargo as it moves around the world.


In that way, the


technology can reduce the need for multiple records that currently are produced at each point in the shipping chain. The new technology can up to 20% of the cost of shipping transactions once the system is fully developed. “The


investment in the


blockchain platform is designed to reduce costs and


significantly improve the port’s ability to add value to the customer,” said Thomas J. Holt III, business development manager


at Holt Logistics.


“Our industry generates enormous amounts of paper work and data. We believe that blockchain technology will increase both information velocity and validity throughout the supply chain, unlocking billions of dollars in value for stakeholders each year.”


Automation Drivers


What are the drivers of all these automation efforts? According to the Navis research, increased operational safety and better operational control and consistency were cited by over 60% of its survey respondents, while lower terminal operational costs and increased operational productivity were cited by more than half. The Navis report indicated


that a fully autonomous


transportation chain—to include loading and stowage of the container, autonomous sailing to


its destination, unloading


by automated cranes and then finally being loaded on to autonomous trucks and trains for the final destination—is likely within the next 20 years. However, there are still several barriers that need to be overcome. According to Navis, the top challenges cited by respondents are high costs (reported by 68%), the lack of skills or resources to implement and manage automation (52%), the time it takes to implement (30%), and challenges with labor unions (44%). Benefits, costs, and challenges


notwithstanding, a couple of things are certain: automated terminals can deliver consistent hour-aſter-hour and day-aſter-day performance, and, speaking of labor unions, reducing personnel headcount


can mitigate the


effects of business interruption due to job actions.


Issue 9 2018 - FBJNA


13


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