20 The


Issue 5 2021 - FBJNA IT


By Thomas Bagge, CEO and Statutory Director of the Digital Container Shipping Association (DCSA) digital


revolution has


changed the way the world does business and never more than during the global pandemic. Container shipping is no exception to the digital revolution, but the pace and benefits of that change have not been equally felt by all participants. Carriers, ports and terminals


are making enormous use of technology to fast-track their operations and boost efficiency. Modern container vessels can contain thousands of sensors and entire ports can be remotely operated. However, customers have not seen benefits accelerate at the same speed. Those at the Digital Container


Shipping


Association (DCSA) believe standards can bridge that divide, enabling interoperability that brings tangible benefits to shipping service providers and


their customers. The right to roam


Digitally advanced


industries like banking and telecommunications


provide


the proof. Those old enough to remember travelling between Europe and the US or Japan in the early 2000s will remember the frustration of not being able to use your mobile phone because of the different cellular technologies used on different continents. Today, global network standards that enabled the creation of triband and quadband phones mean most consumers face no barriers to international roaming except the costs! Similarly, the introduction of


the International Bank Account Number (IBAN) by SWIFT


care who processes payments because most major cards are accepted everywhere thanks to interoperability delivered by digital standards.


How DCSA can


help bridge shipping’s digital divide


Photo: Thomas Bagge revolutionised


consumer


experiences of managing money. This internationally agreed system to identify bank accounts across national borders reduced errors and enabled automated


transactions.


Without IBAN, would there be any internet or mobile banking? Financial interoperability is also evident on the high street. When (if ever) did you last check a shop window for VISA or Master Card symbols? Consumers no longer


Widerøe Airlines partners with SmartKargo to Introduce


E-commerce shipping, delivery service technology


SmartKargo, a leading Cloud provider of air cargo solutions that extend markets for global airlines has announced the successful Go-live of its state-of- the-art e-commerce shipping solution for Norwegian-based, Widerøe Airlines. The partnership enables Widerøe to take a giant leap and empowers entry into the promising ecommerce shipping and delivery market. Widerøe will now deliver


e-commerce shipments to the entire Norwegian population by leveraging its network across 42 destinations in Norway and seven abroad. The Cloud solution also


gives Widerøe seamless


connections with a range of airline interline and ground delivery partners while also providing


direct connectivity with major e-commerce retail sites. SmartKargo introduced the


innovative e-commerce solution last year to enable global airlines to open new streams of revenue with e-commerce shipping and package delivery, which is projected to accelerate from an estimated $5 trillion sales globally this year to $6.4 trillion in 2024. “The growth of e-Commerce


provides an important opportunity for airlines like Widerøe, especially in these times when revenues from passenger travel have decreased,” said Thomas Lone, Widerøe’s Cargo Manager. “SmartKargo integrates all of our partners and enables us to more fully utilize the cargo capacity of our aircraſt, to leverage


our strong brand throughout Norway and generate the higher yields from integrated logistics,” he added. SmartKargo technology can


be integrated with an airline’s existing cargo operating system and soſtware, using a wide range of APIs to enable implementation in only a few months. “We are thrilled to have Widerøe as our newest client and trust that with our disruptive technology, Widerøe will be able to fast-track its Cargo revenue growth by extending their traditional Cargo services to current clients and by tapping into the fast-growing market demand for e-commerce distribution service”, said Olivier Houri, SmartKargo’s Chief Revenue Officer.


While container shipping still has a way to go before matching these transformations, at DCSA we firmly believe it’s a matter of “when” not “if”. One day, shippers will book end-to-end journeys for their cargo on multiple modes of transport in one transaction with instant confirmation. They’ll also track shipments in real-time with proactive notifications of delays or schedule changes. It’ll be as normal as booking connecting flights, a hotel and airport transfer in one transaction on a mobile app; or tracking an online purchase from warehouse to your front door. So how do we get there? As


with banking and telecoms, the answer is developing and widely adopting digital standards that


///IT


enable interoperability. That’s where DCSA comes in.


Top priorities for standardisation


Since 2019 we’ve been working on two parallel tracks. Firstly, facilitating discussions on topics that matter to the industry internally like cybersecurity or just-in-time port calls. Secondly, finding standardised ways for service providers to expose data to customers that’s timely, accurate and actionable. Considering both these areas holistically is essential to ensuring our standards work for the whole supply chain. A major DCSA priority is exchanging digital documentation to reduce friction in international trade. We’re working hard to define standards for the electronic bill of lading, electronic letter of credit, and electronic certificates. There’s vast potential here, but it’s a multi- year journey with a huge range of stakeholders. We’re really pleased with the scale and breadth of engagement so far, ranging from the International Chamber of Commerce (ICC) to many banks and insurers. At the same time, recent port


congestion in the western United States offers clear evidence of the


need for that “timely, accurate and actionable” data. Post-COVID backlogs leſt many shippers in the dark on the condition of their cargo. Two key DCSA standards


should help with this. The most promising in the long-term concerns industrial IoT for smart containers but deploying (standards-based) smart containers requires substantial investment and will therefore take time. DCSA’s Track and Trace (T&T)


standard is much more easily applied and is already making a difference. Customers can now exchange data with multiple carriers using one API instead of several bespoke solutions, and the majority of DCSA’s member carriers have already adopted this standard.


Staying the course


There’s still much work to be done, but prospects are good as more carriers adopt the T&T standard and DCSA enhances its standards initiatives. Bridging the digital divide will


need sustained involvement from all parts of the industry. The innovation and interoperability enjoyed by telecoms and banking can also be ours too - willing to work together.


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