AI is the Future: Staying Competitive in Shipping

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  • The adoption of AI in the shipping industry is progressing slowly due to conservative practices and long asset lifespans.
  • Small pilot projects are key to introducing AI, with partnerships essential for sharing knowledge and experience.
  • Despite challenges, industry experts emphasize the necessity of AI integration to remain competitive and efficient.

The conservative nature of the shipping industry and its long asset lifespans are slowing the adoption of new technologies like AI. However, as AI spreads globally, preparing for this future is critical, as highlighted during a recent panel at the Saudi Maritime & Logistics Congress, reports Seatrade Maritime.

Starting Small with AI Adoption

Mohamed AbuHamra, COO of digital technology at DP World GCC, emphasized that AI adoption does not have to begin with large systems like ERP. Instead, it should start small with real-world tests and feedback before scaling.

“We need to start small, test it in the real world, get real feedback, then make it bigger and bigger and bigger until it’s mature, creating real value for the industry,” said AbuHamra.

AbuHamra stressed the importance of partnerships for successful AI implementation. He noted the support and collaboration of Saudi authorities on AI projects.

Cooperation between shipping companies and other sectors is necessary to share knowledge and expertise.

Cultural Shift Needed for AI Acceptance

Nils Kemme, Managing Director at HPC Hamburg Port Consulting, pointed out the need for a cultural shift in the industry towards accepting data-driven decisions.

“The iterative approach relates to the importance of the cultural shift that we need to have in the industry, and the acceptance of computer- or data-driven decisions by people,” said Nils.

DP World has leveraged AI for improvements in container stacking, truck call organization, and port traffic management. By using large data sets, the company has optimized port operations. It has reduced the time containers spend in ports and improving efficiency.

Smart Port Initiative in Saudi Arabia

Saudi Arabia’s Ministry of Transport launched a smart port initiative at King Abdul Aziz Port, using AI to detect security, safety, and fire risks through surveillance cameras.

This initiative is expected to expand to Jeddah, according to Mohanad Alhamide Al-Mutiri of Tabadul.

AbuHamra highlighted the environmental benefits of AI, such as Just-in-Time (JIT) arrival and AI routing, which can lower vessel speeds and reduce fuel consumption. Information exchange with shipping companies is key to these efficiency gains.

Legacy Systems Are a Barrier to AI Adoption

Kemme pointed out that legacy systems in ports, which are not designed to integrate with modern AI solutions, are a significant barrier to adopting new technologies.

“All that leads to the fact that we have a lot of legacy systems in the port which have not been designed to integrate with modern digital solutions. Retrofitting or exchanging these legacy systems is often a barrier. You wait until they are up for replacement, so therefore we see a slower adoption speed in the maritime industry,” said Kemme.

Al-Mutiri questioned the readiness of the maritime sector for AI but emphasized the need for collaboration and data standardization.

“The maritime sector is still traditional work, but there should be a shift and adaptation to AI. Are we ready? I don’t think we currently are ready, but we have to collaborate,” said Al-Mutiri.

Data Fragmentation Delays Decision Making

Fragmented data across multiple systems and owners hampers AI-driven decision-making, said Al-Mutiri. Access to unified data is crucial for AI adoption and optimizing operations within the industry.

“The industry is not ready for AI, but who is?” asked Kemme. “No matter what, it will be adopted into the industry. If you don’t adopt it with your company, your competitors certainly will, and they will take over your business.”

The Future of AI in Shipping

Ali Shehab of DNV Maritime concluded, “The only constant in life is change – a status quo strategy means failure.” 

He emphasized the importance of partnerships and collaborations to create safer, more cost-effective, and efficient work environments in the future.

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Source: Seatrade Maritime