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SAFETY4SEA

Decarbonization, Digitalization, Diversity: The 3Ds in shipping

by The Editorial Team
February 20, 2023
in Maritime Knowledge, Technology
ZeroNorth
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As the world faces unprecedented challenges from climate change, technological disruption, and social inequality, the shipping industry must adapt to remain relevant for generations to come. Decarbonization, Digitalization, and Diversity – the “3Ds” of shipping- are not just buzzwords.

They represent critical priorities for the industry as it navigates a rapidly changing world. What is the role of these three elements for the industry to ensure sustainability?

Decarbonization

Shipping contributes around 2.5% of global emissions. As the world seeks to limit global warming to well below 2°C and pursue efforts to limit it to 1.5°C under the Paris Agreement, the shipping industry has a critical role to play in reducing emissions.

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Among others, decarbonization efforts include improving energy efficiency, adopting low-carbon fuels like hydrogen and ammonia, and exploring alternative technologies like wind, solar and nuclear power.

Decarbonization in shipping: Three latest developments

· Costa Group, part of Carnival Corporation, and methanol producer, Proman, have joined forces to drive further the implementation of methanol as a marine fuel for the cruise industry.

· Earlier this month, the IMO announced the new Future Fuels and Technology Project, aiming to provide an assessment of the state of availability and readiness of low- and zero-carbon ship technology and marine fuels, to help inform Member States as they work towards the revision of the IMO GHG Strategy.

· Global shipping’s green transition could create new jobs and skills for hundreds of thousands of seafarers worldwide, the World Economic Forum recently said. This means that coordinated policymaking will be key to matching supply and demand and for countries to capitalize on green job opportunities.

“Environmental challenges are not limited to decarbonization. We should not forget that. We should also remember that safety will remain high on the agenda and cannot be compromised,”

said Stefan Bülow, Chairperson, BIMCO Marine Environment Committee, earlier in 2023.

Digitalization

Digitalization is transforming the shipping industry by enabling greater efficiency, transparency, and sustainability. Digital technologies like blockchain, artificial intelligence, and the Internet of Things can improve vessel tracking and navigation, optimize cargo handling and logistics, and enhance safety.

Such technologies can also reduce the environmental impact of shipping by enabling more efficient use of resources and reducing emissions. For example, digital technologies can be used to improve energy efficiency by optimizing vessel speed, reducing fuel consumption, and consequently emissions.

By leveraging digital technology, shipping companies can adapt to changing market conditions and stay competitive in a rapidly evolving industry.

3 examples of digitalization in shipping

· Electronic Data Interchange (EDI): In shipping, EDI allows for the seamless exchange of important documents such as bills of lading, invoices, and customs declarations. This streamlines the shipping process by reducing the need for physical documents to be transported and helps prevent errors that can arise from manual data entry. As such, EDI can reduce paperwork, save time, and improve accuracy in the shipping process. Earlier this month, Digital Container Shipping Association (DCSA) announced that its nine ocean carrier members -including MSC, Maersk, CMA CGM, Hapag-Lloyd, and others- commit to 100% adoption of an electronic bill of lading (eBL) by 2030.

· Internet of Things (IoT) devices: In shipping, IoT devices can be used to monitor cargo conditions such as temperature or humidity, and can also track the location of cargo in real-time. This information can be used to optimize shipping routes, prevent damage to cargo, and provide real-time updates to customers about the status of their shipments. In this way, IoT devices can help shipping companies reduce costs, and provide better services.

· Blockchain technology: Blockchain is a decentralized digital ledger that records transactions securely and transparently. In shipping, blockchain can be used to create a tamper-proof record of each step in the shipping process, from the origin of the cargo to its final destination. This can increase trust in the shipping process by preventing fraud. Blockchain is therefore important because it can provide security, reduce the risk of errors, and provide a more reliable way to track shipments.

Diversity

Discussions about diversity started long ago in shipping. A diverse team brings together individuals with different backgrounds, experiences, and perspectives. In a working environment, this can lead to enhanced creativity and problem-solving, as team members can offer unique ideas based on their diverse experiences. This is why assigning more women, both onboard and in leadership positions ashore, is considered critical for improving efficiency.

As awareness about the importance of gender diversity in business is increasing, diversity is also considered a key pillar of an organization’s reputation and legitimacy. A diverse workforce demonstrates a commitment to equal opportunity and fair employment practices. This can attract a wider pool of talent and help retain employees.

Diversity in shipping: 3 latest developments

· As of the end of 2022, more than 100 women leaders had registered as speakers on the new Maritime Speakers Bureau platform. The platform was created by IMO and WISTA International last October, as part of their efforts to promote greater diversity and inclusion in shipping.

· A recent report by ETF and ECSA recommended that shipping should agree on a target of a minimum percentage of women in maritime management positions within 20 years. Once the baseline data is gathered, shipping will need to set percentages for interval years starting from 2026.

· Maritime UK has been awarded £100,000 in grant funding to deliver a Maritime Roadshow for Girls throughout 2023. The roadshow will aim to encourage Key Stage 3 girls to choose STEM subjects and to give the students greater awareness of career opportunities across the maritime industry.

Tags: decarbonizationdigitalizationdiversityshipping

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