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Tech predictions for 2023

Angus Whiston from DeepSea on what to watch out for next year.

This year has proven to be a turning point for the use of technology in shipping. From the influx of new data driven by external factors, such as sanctions, to incoming regulation from within maritime – the CII – and landmark adoption of AI from major players, the 12 months ahead will surely see the next phase of maritime’s digitalisation journey bearing fruit.

In 2023, firstly, we’re going to experience further consolidation of the voyage optimisation sector in maritime, as the two elements of operational and technical optimisation converge with commercial optimisation and the data-driven approach that AI brings to the table.

DeepSea is already operating in the data-driven space of course, but we’re seeing that more companies are aspiring to join us here, because it simply makes sense. As the market continues to seek solutions that can truly deliver competitive advantage, commercial efficiency, and emissions reduction, it’s becoming clear that these different elements cannot exist independently: they’re all part of the same package. In the past, it was much harder to consolidate these components because, put simply, the technology wasn’t available, let alone proven. This change in the market, therefore, is predominantly technology-driven, which feels like a significant step-change in itself.

Secondly, we’re anticipating that the adoption of AI-based technology in shipping will continue – further proving that AI can deliver real-world results. Just a few years ago, the number of AI companies operating in maritime was almost nil, but it’s now clear that this sector is growing at a rapid rate. From larger organisations to start-ups with niche AI-based services, there is now a considerable realisation and growing acceptance within the industry of the use case for AI in shipping, and its true value in accelerating the sector’s ambitions when it comes to efficiencies and competitive advantage.

The first step on the AI adoption journey is to introduce technology, based on existing processes, that increases operational efficiencies. Recent success stories, such as our partnership with Wallenius Wilhelmsen, as well as Orca AI’s recent deal with Maran Tankers, and others, mark a substantial increase in the uptake of AI technology by influential players within shipping. This trend will continue, as the commercial success generated by AI-based software becomes ever more evident.

Going one step further is the concept of automated vessels – a topic that conjures excitement, but one which has also developed a somewhat ethereal reputation in some areas of the industry. This is not dissimilar to the shipping industry’s early perception of AI. The reality of automation, however, is that it is no longer a distant future prospect, but an inevitability. New technological solutions are developing for every aspect of the vessel – navigation, engine automation, watchkeeping, bunkering, etc – and it is a certainty that over time these areas will begin to converge. We’re particularly eager to explore the concept of a bridge – or at least its key functions – that is automated to maximise efficiency. This is a key area of research interest for us as we head into 2023.

The industry will of course continue the march to overcome its general technological scepticism – though admittedly with an increased pace. One of the issues that we’ve been focused on solving is the split incentive challenge – the apparent disparity in value proposition between charterer and owner when it comes to the implementation of decarbonisation and digital technology. This has slowed the pace of digitalisation in general. However, with CII regulation incoming, alongside the new BIMCO clause, the responsibility on the charterer is now growing, adding pressure on this group to shoulder their fair share of the burden when it comes to efficiency. We’re hopeful that these changes will prompt further investment, large or small, in technology that will form the foundation for data gathering. This will also serve as the first step towards successfully implementing automation in shipping.

A final, important point is about people. As shipping enters its digital era, the value of technological solutions that drive real impact is for the first time being realised and proven beyond doubt. Shipping must acknowledge that there are important and valuable approaches within this field that simply cannot be developed and managed in-house. Now, more than ever, understanding how to run an asset as efficiently as possible is crucial to ensuring commercial success. Given recent technological developments it’s therefore inevitable that new skillsets will be required by the industry when it comes to data and AI. This new level of insight and expertise needs to be outsourced to specialists as shipping looks to move forward on its digitalisation journey. Given the various economic challenges currently at play, geo-political instability, the race to net zero, and increasingly stringent regulation, shipping companies need to be able to focus on their bread and butter.

Splash

Splash is Asia Shipping Media’s flagship title offering timely, informed and global news from the maritime industry 24/7.
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