Imagine the lifeblood of global trade—ocean shipping—operating with the precision of a well-oiled machine, yet hobbled by information bottlenecks that result in staggering annual losses. Containers pile up, ships idle anxiously outside ports, cargo delays mount, and customers grow increasingly frustrated. The root cause of these problems points to a common issue: information asymmetry and lack of coordination.
In today's interconnected global economy, ocean shipping serves as a critical bridge linking nations. Its efficiency directly impacts the smooth flow of international trade. Yet, the industry has long suffered from information silos, where different segments operate without effective data sharing or collaboration. This fragmentation leads to operational inefficiencies, inflated costs, and ultimately undermines the competitiveness of entire supply chains.
Information Silos: The Achilles' Heel of Shipping
A recent report from the Business Performance Innovation (BPI) Network, in collaboration with Navis and XVELA (both Cargotec companies), highlights the urgent need for digital transformation in shipping. Titled "Competitive Advantage in the Ocean Supply Chain: Innovations Driving Maritime Operations Transformation," the study surveyed over 200 industry executives and professionals across various segments—terminal operators, carriers, logistics providers, ship owners, port authorities, shippers, and consignees—to analyze challenges and propose actionable solutions.
The report reveals that due to poor coordination and insufficient data insights among partners, stakeholders across the supply chain suffer from limited cargo visibility and predictability, resulting in significant financial losses. This information asymmetry acts as the industry's Achilles' heel, severely constraining its potential.
The negative impacts of information silos manifest in several ways:
- Difficulty tracking cargo: Shippers cannot monitor real-time location and status, increasing supply chain uncertainty.
- High risk of delays: Without early warning systems, potential disruptions go unnoticed, leading to missed deadlines and dissatisfied customers.
- Operational inefficiencies: Poor coordination causes resource waste—ships wait outside ports, terminal equipment sits underutilized, and yard management becomes chaotic.
- Poor decision-making: Lack of accurate data hampers route optimization, berth scheduling, and inventory management.
- Persistently high costs: Inefficiencies and misjudgments drive up expenses—fuel, port fees, storage, and demurrage.
"We're seeing major carriers eager to accelerate digitization and collaboration to boost efficiency and visibility across supply chains," said Andy Barrons, Chief Strategy Officer at Navis, in an interview with SCMR. His statement captures the industry's consensus: digital transformation is key to solving information silos.
Digital Transformation: The Lifeline for Shipping?
Facing these challenges, industry leaders increasingly recognize that digital transformation—paired with a shift in mindset—can revolutionize operations. Digitization isn't merely about adopting new technologies; it requires rebuilding traditional models to create an open, collaborative ecosystem.
Andreas Mrozek, Global Head of Ocean and Terminal Operations at Hamburg Süd, emphasized: "Collaboration and data sharing benefit everyone—from customers to carriers, terminal operators, suppliers, freight systems, trucking companies, and beyond. Tighter cooperation offers compelling value for every supply chain partner."
His remarks underscore the direction of digital transformation: unified data platforms that break down silos, enhance transparency, and improve efficiency.
Data Sharing: The Key to Efficiency
The survey found that 90% of respondents consider real-time data access and sharing crucial for operational improvement, while 82% believe supply chain visibility must increase. These demands stem from multiple pressures:
- Shippers pushing for better operational transparency
- Alliances requiring members to share information more effectively
- Terminals and port authorities needing to optimize infrastructure use
Executives estimate that upgrading IT systems and enhancing data-sharing capabilities could improve ocean supply chain processes by 55–66%. This potential underscores digitization's transformative power.
The Path Forward: Challenges and Opportunities
Dave Murray, Thought Leadership Director at BPI Network, noted: "Our research highlights the urgent need for technology-driven models to improve collaboration and visibility. Economic constraints and resistance to change have slowed the industry's digital progress."
Yet, digitization is inevitable. To remain competitive, the industry must embrace innovation. Below are five critical areas for improvement:
1. Carrier-Terminal Coordination
Optimizing berth schedules and cargo handling to reduce wait times and delays through shared platforms and traffic management systems.
2. Supply Chain Visibility
Implementing IoT tracking, electronic data interchange (EDI), and unified management platforms for real-time cargo monitoring.
3. Terminal Operations
Adopting automated equipment, smart yard systems, and AI-driven scheduling to boost efficiency.
4. Cargo Flow Predictability
Developing risk-alert systems, optimizing routes, and creating contingency plans to ensure on-time delivery.
5. Alliance Coordination
Establishing shared platforms for vessel and route data, integrating resources, and standardizing services among alliance members.
"Cloud platforms enable visibility, coordination, and collaboration across networks—just as we've seen in other industries. Synchronized operations help everyone achieve performance goals," commented Guy Rey-Herme, President of XVELA.
Embracing the Digital Future
Ocean shipping stands at a crossroads: cling to outdated models or harness data and technology to redefine the industry. By dismantling information silos and fostering data sharing, the sector can unlock trillion-dollar opportunities—boosting efficiency, cutting costs, and enhancing customer satisfaction. The time to act is now.