Port Calls Prepare for the Next Wave of Digitalisation

The maritime sector is experiencing a paradigm shift as technology transforms operations from sea to port. The adoption of advanced software solutions is imperative for optimising so many facets of maritime operations, particularly port call management. There is still some way to go to truly modernise and transform this area of disbursement analysis, but we at Harbor Lab are working to transform how the industry thinks about and approaches this process.

A Monumental Milestone: $16 Million Funding Raised
We recently achieved a monumental milestone in our journey: in May, we announced that we had raised $16 million funding, in collaboration with our partners at Atomico, to enable us to invest in new technologies, grow our team, and continue to modernise port call operations.

The Traditional Approach to Port Call Management
Traditionally, port cost management has been a complex and manual process, riddled with inefficiencies and errors. Shipping companies have traditionally relied on manual methods to track, analyse, and validate port expenses, leading to a convoluted web of costs. Each vessel incurs substantial expenses at port calls, including fees for port facilities and essential services such as spare parts and visas for the crew. The global cost from port calls exceeds $220 billion annually, making it the second-largest expense for commercial vessels after fuel.

This outdated approach not only inflates operational costs but also causes frequent disputes and delays in payments. The lack of standardisation and transparency across ports worldwide exacerbates the problem, making it challenging for shipping companies to predict expenses accurately. Geopolitics, economic changes, and fluctuations in currency and exchange rates further complicate the calculation of port expenses.

Streamlining Port Cost Management with HarborLab
Harbor Lab addresses these challenges by streamlining the port cost management process. It allows a single individual to oversee disbursements for potentially tens of vessels at a time, compared to the traditional ratio of 1 to 6 vessels. This significant improvement is achieved through the automation of invoicing and cross-referencing port call expenses with real-time official port tariffs from global port authorities. Consequently, the margin of error is reduced from 20% to just 3% per port call.

In addition to reducing errors, the offering of a Know-Your-Customer (KYC) verification enhances security and compliance in interactions with local agents fostering a culture of trust and innovation across the maritime ecosystem by boosting transparency and efficiency.

The Profound Impact of Digital Transformation on the Bottom Line
The impact of digital transformation on the commercial bottom line is profound. By adopting digital solutions, shipping companies can streamline their administrative processes and make instantly live-data decisions resulting in substantial cost savings. For instance, ship managers using Harbor Lab’s system have demonstrated savings of approximately $3,000 per husbandry port call. Meaning that a ship management company whose vessels make 100 port calls annually can save around $300,000 in a year.

These solutions enable quicker decision-making by providing real-time data and visibility into ground operations. This not only reduces the turnaround time for final disbursement accounts but also enhances operational efficiency. What once took months with a paper-based system now takes an average of only 15 days, a number that continues to decrease as the system evolves over time.

What the future holds
We have seen some of the industry’s biggest players onboard our software to truly modernise their operations, including shipping giants Oldendorff Carriers and Great Eastern Shipping among others.

With the latest funding success, we can jump headfirst into the next stage of Harbor Lab’s journey through the investment in artificial intelligence (AI). AI algorithms have the potential to analyse vast quantities of historical data, such as port fees and other in-port costs, alongside predictive analytics to forecast future expenses based on a particular vessel’s specifications and requirements. This capability enables shipping companies to improve budget forecasting and overall commercial visibility. AI can also automate the classification and categorization of port expenses, significantly reducing the manual work required for accurate expense allocation and reporting. Algorithms could detect discrepancies, such as unexpected variations in fees or duplicated costs, and identify cost-saving opportunities swiftly. By integrating AI to enhance cost cutting and time-effectiveness, Harbor Lab stands ready to support our users and the wider maritime industry on its digitalisation journey.

Overcoming Industry Resistance to Change
While the benefits of digital transformation are clear, the industry has traditionally been slow to embrace this change, despite the advantages it offers. After all, the biggest threat to change, is the phrase “it has always been done this way”. Software providers play a crucial role in demonstrating the value of pragmatic solutions and convincing industry stakeholders to integrate these innovations into their operations.
Strategic integrations with fellow maritime innovators such as Veson Nautical and 90POE will provide a seamless, joined-up solution for customers, supporting the global expansion of Harbor Lab’s platform.

Innovation: The Key to Efficiency and Cost-Effectiveness
Innovation is the key to driving efficiency and cost-effectiveness, of which is essential to commercial success. The Harbor Lab platform is leading the charge in modernising this aspect of the industry, offering substantial benefits to shipping companies worldwide. By embracing digital transformation and leveraging advanced technologies like AI, the maritime industry can achieve greater transparency, efficiency, and cost savings, ensuring success in a competitive global market.
Source: By Antonis Malaxianakis, Founder and CEO, HarborLab