DCSA: Digitalization is a critical driver of sustainability

DCSA’s State of the Industry report highlights that 65% of cargo owners prioritize sustainability, with 32% working to reduce paper usage and 43% focusing on efficient logistics to minimize their environmental impact. Importantly, the industry must recognize that digitalization is becoming a critical driver of sustainability, not merely a tool for efficiency. Future supply chains must integrate efficiency with long-term sustainability, with digitalization serving as the key to achieving this transformation.

SAFETY4SEA: What is your company’s philosophy for the maritime industry and what are the top priorities on your agenda for the next five years? 

Thomas Bagge: DCSA advocates for a digitally interconnected container shipping industry in which stakeholders have access to seamless, easy to use digital services that increase efficiency, improve sustainability and enhance the customer experience. A key focus is the development of industry standards that promote interoperability and efficiency while unlocking valuable data insights that can optimise supply chain management. Meanwhile, as part of its aim to achieve paperless international trade, DCSA promotes uptake of a secure, standardised electronic Bill of Lading (eBL). Over the next five years, DCSA will continue to collaborate with stakeholders from across the supply chain to support digital transformation and reduce the sector’s emissions.

S4S: What are the key barriers preventing wider adoption of digital technologies like eBL across the industry? How is DCSA addressing these challenges?

Th.B.: Although the shipping industry has made vast progress in its digital transformation, considerable barriers remain. DCSA’s report “Overcoming legal and regulatory barriers to eBL adoption”, for instance, explores the differing attitudes to digital documentation across 15 jurisdictions globally. Among findings, the report highlights that conditions governing the use of the eBL are either overly prescriptive or too ambiguous, which can deter uptake.  Meanwhile, a lack of interoperability between digital solution providers means that in a specific transaction, all parties must be onboarded onto the same platform in order to be able to send or receive digital documentation. Given there is currently a wide range of eBL solution providers working in digital siloes and, considering the vast quantity of stakeholders operating across the supply chain, this presents a significant barrier to use. DCSA is involved in various initiatives to overcome these barriers – and progress is being made. For instance, DCSA is involved in frequent conversations with governments and legislators to overcome regulatory inconsistencies and increase support for digital trade. What’s more, in addition to developing its own standards, DCSA collaborates with solution providers on the development of both technical and legal standards that will enable stakeholders to more easily transfer data between platforms.

S4S: How does DCSA see the role of digitalisation in contributing to the broader sustainability goals within container shipping, such as reducing emissions or optimising fuel usage?

Th.B.: As decarbonisation deadlines draw closer, digitalisation must be accepted not just as a tool for efficiency, but as a critical driver of sustainability. As the shipping industry is responsible for around 2% of global carbon dioxide emissions, it is critical that stakeholders support the digital transformation to increase efficiency and reduce waste. A universal eBL, for instance, could save an estimated 28,000 trees per annum and reduce greenhouse gas emissions by 32 to 86 kg per end-to-end transaction. Meanwhile, improving scheduling and reducing delays could drastically cut the time ships idle in ports, burning fuel and increasing emissions. As DCSA’s recent State of the Industry report found, 65% of cargo owners rank sustainability as a top goal, while 32% have implemented measures to reduce paper usage and 43% have committed to reducing their environmental impact through more efficient logistics. While the industry can be proud of the progress it has made so far, it must ensure it does not lose momentum. The supply chains of the future must be efficient and sustainable in the long term. Digitalisation will be the key that unlocks the door to an enduring supply chain. 

S4S: Where do you see the most transformative innovations in digital shipping occurring over the next 5 to 10 years? What is DCSA’s role in fostering these innovations and how do they impact operational efficiency across the shipping ecosystem?

Th.B.: Over the next decade, the shipping will continue to evolve. Artificial Intelligence (AI), internet of things (IoT) and digital twins technologies will transform the industry making it even more efficient and enhancing the customer experience. Better and quicker decision making processes will be deployed as a consequence of increased transparency, timely and accurate data and new technologies. These advancements will continue the transformation the sector – and DCSA’s standards are critical in making the data flow seamlessly between actors. Enabling a common framework throughout the container shipping industry, DCSA’s standards improve transparency, minimise complexities throughout the supply chain, encourage innovation, and ensure the entire supply chain ecosystem is operating as efficiently as possible.  DCSA’s Track & Trace (T&T) standard, for instance, uses interoperable data models to enable the continuous visibility of container whereabouts throughout the end-to-end container journey. The T&T standard thereby enables freight visibility throughout the supply chain, enabling seamless, real-time exchange of digital shipping data between all stakeholders – regardless of platform.  Standards adoption is growing at pace, with carriers implementing more DCSA standards in the first quarter of 2024 than in the entirety of 2023. Today, there is more than 185 mill. calls on DCSA’s APIs every month. By increasing data interoperability, DCSA’s standards are creating a more reliable, efficient and responsive supply chain.

S4S: Have perceptions of digitalisation’s value shifted among industry stakeholders according to findings of your recent report?

Th.B.: According to DCSA’s State of the Industry report, industry stakeholders recognise the benefits of digitalisation in diverse ways. Feight forwarders, for instance, believe digitalisation brings smoother communication and operational efficiency with a shift toward real-time data. Ports and terminals, on the other hand, view digitalisation as a tool to eliminate manual processing through data integration. For banks, the opportunity for fraud prevention and risk reduction plays a significant role. Meanwhile, 88% of cargo owners with higher levels of digitalisation believe it creates higher customer satisfaction and improves the customer experience, and 86% see digitalisation as a tool for better decision-making.  Overall, it is clear that stakeholders across the industry recognise the value of digital transformation and its role in addressing challenges such as complex booking processes and inefficient communications. The report’s findings indicate a clear, growing shift in favour of industry-wide digitalisation. 

S4S: What role do shipping companies, ports, and technology providers play in advancing digitalisation?

Th.B.: Shipping companies, ports, and technology providers each play a crucial role in advancing digitalisation throughout the shipping container industry. DCSA’s State of the Industry report finds that 54% of cargo owners view shipping companies and carriers as external stakeholders that present an obstacle to digitalising shipping processes, highlighting that closer dialogue and collaboration is paramount. The report also finds that 45% of cargo owners believe greater collaboration among industry stakeholders will accelerate standards adoption. As such, collaboration represents a major driver for widespread digitalisation.  While progress has been slow, the results of collaborative efforts are starting to show. eBL uptake, for instance, has already more than tripled from 1.2% in 2021 to 4% in March 2024 – something that would not have been possible without stakeholder support. As industry bodies, solutions providers, governments and stakeholders continue to work together to encourage adoption and overcome challenges, the pace of digital transformation will continue to accelerate.

The views presented are only those of the authors and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.