The only specialised marine publication in Oceania that focuses on the maritime industry, from super yachts to small craft to large commercial ships, including coastal shipping, tugs, tow boats, barges, ferries, tourist, sport-fishing craft
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MOBILE FUTURE FOR SHIPPING INDUSTRY As the shipping industry faces unprecedented pressures, more and more companies are turning to the latest technology tools to achieve competitive advantage. Lauren LaFronz summarises the current situation, and in part, two Joe Richards argues that the next battle for market share will be fought in the mobile arena. M aritime transport dominates international trade. It carries more than 80 percent of world trade by volume and almost 60 percent by value, meaning it is also highly exposed to macro-economic conditions. Sovereign debt problems and fiscal austerity in many developed countries have contributed to very difficult trading conditions for shipping operators. Over the past two years, these conditions have been compounded by a series of natural disasters, political unrest in areas surrounding important shipping routes, and ongoing energy and commodity price volatility. Regulations within the shipping industry itself, notably regarding fuel emissions, and legal issues surrounding transport and trade facilitation in general, are also creating a tougher operating framework. The price of bunker fuel which already accounts for 25 percent of operating costs, is expected to increase by an additional 50 percent following the implementation of International Maritime Organisation rules (MARPOL Annex VI) which, in 2015, will reduce the allowable sulphur content of fuel to just 0.1 percent in prescribed Emission Control Areas and to 0.5 percent elsewhere. In addition, chokepoints in popular routes and ports, greater trade volumes among BRICS (Britain, Russia, India, China and South Africa) and other developing nations, the rise of piracy in key areas, and the need to navigate low-sulphur zones require new trading routes to be developed and tested. These tough trading conditions have created a significant downward pressure on operating margins. Reduced freight rates are also having a negative impact: between May 2010 and July 2010, the Baltic Exchange Dry Index lost more than half its value. A partial rally in August 2010 did little to halt the downward trajectory, and as of May 2011 the BDI had declined by about two thirds. Joe Richards: Mobile future for Maritime Industry In a tough operating environment companies in the shipping industry need every possible advantage at their disposal. To this end, a growing number of shipping companies are investing in technology solutions specifically designed to help them efficiently and effectively manage freight rate volatility, bunker fuel costs, and journey, vessel and cargo planning to minimise risks associated with vessel operations. Traditional desktop solutions have enabled shipping companies to successfully: • Improve the voyage estimating process by more accurately calculating business P/L before fixing, analysing cargoes, vessels, load and discharge ports, and optimising dry cargo, gas, tanker, and parcel operations • Manage cargo tonnage more efficiently by maintaining cargo commitments and open tonnage, monitoring cargo types, and effectively matching cargo to potential vessels • Enhance voyage management by controlling all post-fixture activities, tracking daily operations, and comparing actual versus estimated P/L • Optimise vessel management by maintaining technical and commercial vessel descriptions, cataloguing physical details including speed and bunker consumption, and tracking commercial details, dates of purchase, and sales • Mitigate real risks of vessel operations by generating true net freight positions covering outward versus inward positions, managing forward freight agreements and options to hedge, and analysing exposure normalised to Baltic prices However, the current overwhelming trend in enterprise technology is the move to mobile. The wholesale use of Blackberries in the early years of the 21st century, and more recently the advent of iPhones, iPads and other tablet computing devices, has taken enterprise computing to a new level, and created new ways of increasing productivity. As a result the workforce as a whole is becoming increasingly mobile. In a survey conducted for IBM, 75 percent of executives stated that the deployment of mobile devices is critical to the long-term successes of their companies. iPhones are already being deployed or tested by 80 percent of the world's biggest companies, 30 Professional Skipper November/December 2012 VIP.S69