22


Issue 4 2020 - Freight Business Journal


///NEWS


DCSA is out to digitise the shipping world


The Digital Container Shipping Association, or DCSA, recently re-expressed its firm view that the time has come for the container shipping industry to begin using digital bills of lading as widely as possible. Formed in April 2019 and


representing nine shipping lines that carry 70% of the world’s containers, the DCSA’s stated mission is to drive technology standards and frameworks for carriers to bring innovative solutions to market. It sees an electronic bill of lading, or eBL, as a vital step towards significantly increasing standardisation and efficiency across container shipping. Digitising documentation,


starting with the bill of lading, is key, insists DCSA chief executive, Thomas Bagge. Eliminating paper would make global trade


and the shipping industry better, faster, cheaper, more secure and more environmentally friendly, he argues. He tells FBJ that, when DCSA


was formed last year, members made a commitment to increase collaboration across the industry, although at that time it didn’t have a clear roadmap of how specifically it would seek to drive things forward. The group has worked on defining one in the months since, talking with regulators, service providers, insurance providers and banks, as well as shipping industry customers, to establish priorities. Bagge says it quickly became clear that digitising trade is a major area for most and one ripe for significant improvements. Moreover, the Covid crisis has


heightened the need to develop more efficient methodologies to


move goods, he suggests. An air freight capacity crunch caused by the loss of much passenger aircraſt bellyhold cargo space has placed more emphasis on seafreight and, says Bagge, DCSA’s container shipping contacts see a real need to push for greater digitialisation to keep cargo moving. Electronic BLs are not the only


aspect of digitalising trade – it also takes in electronic import/ export permits, digitialising commercial invoices and so on – but they are a critically important aspect of such a process. DCSA’s role would be to set the standards for eBLs and other aspects of electronic trade and its next step will be an initiative to enable the open collaboration necessary for achieving full eBL adoption. As part of this, DCSA expects


to develop open source standards for the requisite legal terms and conditions, as well as definitions and terminology to facilitate communication among


DP World accelerates tech solutions


DP World, the cargo logistics specialist and port operator headquartered in Dubai, has launched a new range of digital platforms for those looking to ship by air, sea and/or land. A DP World spokesperson


tells FBJ that the “world-first” digital platforms it is now rolling out offer end-to-end supply chain operations at the click of a mouse to cargo shippers, be they giant multinational corporations or small farmers. They will also benefit consumers. “Building on our worldwide


network of more than 80 ports, terminals and economic zones


in more than 50 countries, we are creating technology-driven solutions that will make supply chains more efficient and less costly, with greater visibility and control for customers,” he continues. “The global logistics industry


has lagged behind others in building joined up, standardised, digital systems and DP World’s objective is to lead the industry’s transformation.” DP World confirms that it has


accelerated what was a pre- planned roll-out of the platforms in order to help companies meet the challenges of the current Covid-19 pandemic.


The new offerings


complement DP World’s acquisition of SeaRates.com, a digital freight platform, along with


LandRates.com and


AirRates.com. DP World has also completed


the early stages of integration with the AP Moller Maersk/ IBM blockchain-based digital container logistics platform, TradeLens. TradeLens brings together data from the supply chain including shippers, port operators and shipping lines and replace paper documents with blockchain-enabled digital solutions. The global port operator aims to connect


Forward thinking, Forward moving Since purchasing ForwardOffice in 1998, our business


has evolved considerably. ForwardOffice has developed with us throughout this period. We have developed a


fruitful relationship with FCL and see them very much as a strategic partner, rather than just a software supplier.


Jerry Cook, IT Manager, Meachers Global Logistics


customers, container carriers, regulators, financial institutions and other industry stakeholders.


Standards


Then, as a not-for-profit, neutral trade body it would publish and make available to all its recommended standards as that first step towards adoption and industry-wide standardisation of eBLs and potential other digital tools.


On 2 June, the Association


published IoT connectivity interface


standards to ensure


interoperability between smart container solutions at the radio interface level, bringing supply chain participants one step closer to having an uninterrupted flow of information on the whereabouts of boxes and the status of their contents. Of course, DCSA can only do


so much. It is up to the shipping lines and their customers to invest in


technologies and processes, but there is general consensus


all its 82 marine and inland container terminals, as well as feeder companies and logistics divisions with the system. Moreover, DP World also Digital Freight


formed the


Alliance, an online association that brings freight forwarders globally onto


one platform.


This, says DP World, gives them “access to new tools, routes and services, and enabling them to do more business anytime anywhere”. According to DP World’s chief


operating officer for logistics and technology, Mike Bhaskaran: “The Covid-19 pandemic has demonstrated that we must do all we can to make supply chains stronger to keep trade flowing, even in times of unprecedented challenges for the world.” He continues: “Our new


platforms are moving the management of moving cargo online. It will enable our customers to be more efficient and increase the visibility and predictability of supply chains. This will help them to grow their businesses, and ultimately keep countries supplied with the vital goods they need in the crisis.” Sultan Ahmed bin Sulayem, group chairman


and chief forwardcomputers.co.uk


executive, adds: “We believe that our new platforms, including the Digital Freight Alliance,


(and certainly amongst DCSA’s members) of the move along this path. “The transformation that has


taken place in the airline industry is an example of what’s possible if we work together,” Bagge declares. There,


“the e-AWB (electronic


air waybill) is now the norm rather than the exception among air carriers. We invite industry stakeholders to work with us to create standards that will make the eBL useful and relevant


for


ensuring their goods are delivered safely and seamlessly to their final destination.” Of course, he says, it will take


time. It was a while before the International Air Transport Association’s (IATA’s) efforts to push widespread adoption of eAWBs had much effect, and still eAWBs are not universally used. However, as Bagge points out, the air freight industry is a lot more diffuse: there are huge numbers of air cargo carriers – both freighter aircraſt and passenger aircraſt operators – while only a very limited number of


will contribute to opening new commercial opportunities for our customers, even during the sudden economic downturn. “This technology is a direct


business enabler. Digitising trade will help companies do more business, more efficiently. It will also support the global imperative to keep trade moving during the current crisis to help meet the demand of world markets.”


Building on success


The latest platforms to be rolled out are building on the recent additions and improvements made by DP World to its digital offering. Membership of the Digital Freight Alliance, for example, enables even small freight forwarders to do business as global players by working together with other member forwarders online. It allows them to share capabilities around the world so they can easily arrange shipments from and to anywhere. It also gives access to business critical data such as container tracking, vessel schedules, payment protection and access to logistics finance. Together with the three


Rates.com platforms, the latest DP World digital innovations


large-scale container carriers (with nine of the biggest being members of DCSA). Problems will need to be


overcome. Regulators will have to be persuaded of the need for eBLs and that they do not compromise supply chain security. Certainly, legislation is “holding us back” in digitalising trade in some nations, Bagge believes. And while recent technological


improvements such as Blockchain represent a great potential help, the devil is in the detail: while the big container shippers are certainly on- board with eBLs at this stage, they have yet to really sit down to thrash out the details of what they might require from all stakeholders. Nevertheless, it is “super


exciting” that so many big players have confirmed their commitment to the process, Bagge concludes. With what DCSA estimates could be a US$4 billion potential annual saving to the industry at just a 50% eBL adoption rate, there is plenty at stake. And DCSA predicts that that is feasible by 2030.


include Manasah, a recently launched online marketplace that allow bazaars to support local artisans and small businesses in selling their products during the Holy Month of Ramadan. Launched in partnership the Department


with Economic of Development,


and Dubai Festivals and Retail Establishment (DFRE), an agency of the Dubai Department of Tourism and Commerce Marketing and built in just three weeks, the platform was designed to keep trade flowing during Ramadan amid the social distancing in place to protect people from Covid-19. Looking ahead, the Covid crisis has demonstrated that supply chains need to be made more robust, and customers need greater visibility and control to respond to business changes, the DP World spokesperson says. “DP World has accelerated


the


introduction of these platforms to keep trade flowing. We have been working hard to ensure that countries keep receiving vital supplies, such as food and medicine, and to help ensure that goods keep moving to keep in business companies we will all need for the world’s economy to recover.”


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