Sharing in Shipping To Unlock $237 billion
The report is especially pertinent as the Covid-19 crisis, has highlighted the vital importance of sharing data. This was apparent when Moderna, a Boston based US biotech, used data that China had open-sourced on the genetic structure of the virus to develop a vaccine in record time. Scientists around the world are sharing data to develop vaccines and viral therapies. Government strategies for containment, suppression and mitigation have also been based on shared data and modelling.
The sharing economy, a digital innovation widely deployed in this B2C arena, is explored in this paper in the shipping sector.
The report is the first of its kind to integrate robust econometrics models to precisely calculate the economic impacts of sharing in shipping. The findings show substantial economic opportunity through sharing, which arrive at a highly opportune time. The shipping industry is under increasing pressure from international regulators to support sustainability imperatives. Shared data will become of growing importance for the advanced modeling to improve vessel route optimization reducing carbon footprints.
The report also highlights how sharing data in shipping may also be the mechanism to preserve the market share of the key players. A go-it alone mentality puts the shipping industry at risk from formidable companies outside the sector, such as Amazon who have signalled their intentions to move more deeply into logistics and shipping. As the leader of the world’s largest shipping company, Soren Skou, CEO, A.P. Moller Maersk A/S, previously told Bloomberg, “Amazon is a threat, if we don’t do a good job for them”.
To fend off this external industry competitive threat, and meet the growing challenges of sustainability, ship owners and operators can work together to leverage the power of their most valuable untapped commodity: data.
Sharing in shipping could increase market size and spur profitable growth, in an industry which is vulnerable to macro-economic challenges.
Ali Riaz, CEO of OrbitMI, a maritime intelligence platform which commissioned this report said: “By now, you have likely heard about the concept of the collaborative or sharing economy, roughly defined as a host of activities based on acquiring, providing, or sharing access to goods, services and data, often facilitated by online platforms that connect buyers, sellers, partners and other stakeholders. Those ideas sound largely positive and progressive, but for a traditional industry such as shipping they may sound alien, if not intimidating. How do we move from secrecy to sharing? What benefits are achieved through sharing? We asked Critical Future to quantify the benefits of sharing. Those benefits include realizing significant economic value to the industry but more importantly, the ability for us to meet the aggressive sustainability goals we want to achieve. Without sharing—and without, first, thinking differently about sharing—we will struggle to meet IMO benchmarks.”
Adam Riccoboni the CEO of Critical Future which wrote the report said: “The robust economic modelling in this report has quantified a noteworthy upside for the shipping sector in sharing data. This can create $237 billion in value over the next seven years. Sharing data is also a big step forwards in digital transformation and preserving market share of key players. Most importantly, sharing data will help reduce the carbon footprint of the global shipping industry through increased vessel route optimization. Sharing in shipping offers a triple bottom line of financial, social and environmental impact.”
Source: Critical Future