The Lloyd’s List Podcast: How to de-risk the future of shipping
Listen to the latest edition of the Lloyd’s List’s weekly podcast — your free weekly briefing on the stories shaping shipping
Shipping is not quite at the tipping point where innovation will accelerate across the industry, but the digital revolution is creating a tiered market of haves and have nots and carbon regulation is changing the dynamics. The podcast this week features highlights from our live innovation webinar
INNOVATION has been a central theme of Lloyd’s List’s editorial agenda for several years now precisely because it should hold the key to how we overcome challenges, how we catalyse change and how we de-risk the future of shipping.
This week’s edition of the podcast features edited highlights from the Lloyd’s List innovation webinar, which examined all these issues and more.
The full recording of the webinar is available on demand here
Key takeaways from the webinar include:
- Shipping is some way off reaching an innovation tipping point
Innovation in shipping continues to be limited to siloed pockets of early adopters. For innovation to spread across the industry, a tipping point is required. From there, change will accelerate. Innovators and early adopters will help the industry reach the tipping point, but small private owners may ultimately benefit from the economies of scale driven by the early majority. The risk of expensive failure is high and most owners are in a race to be second when it comes to research and development.
- Scalability matters, but size is not a blocker to innovation
Technology is not a major concern — the major breakthroughs shipping is waiting for are around scalability and availability. But companies need to be set up for change. Larger companies are leading innovation and are better equipped to adapt. Smaller companies in general tend to struggle more, but can adapt to the evolution of owner/charterer relationships with more data transparency and collaborative decision making.
- A misalignment of incentives is hampering innovation
Shipping’s traditional contractual structures limit the industry’s effort to reduce emissions, embrace collaboration and transparency and improve efficiency. However, carbon intensity indicator and emissions trading will shift the conversation between owners and charterers. This backdrop opens up the potential to better incentivise a more innovative sharing of data and efficiency improvements.
- Companies and people need to change. The technology is ready
Digital transformation is 10% digital and 90% transformation — it comes down to change management. You cannot expect shipping businesses to now change the way they have operated for centuries — but you can walk the path with them.
- Lack of standardisation must be worked around
The lack of standardisation makes it more difficult, sometimes impossible, to use the best data possible to drive decisions because the best-possible data is not consolidated and available for use. Rather than focusing on closing this data standardisation gap, the focus should be on availability and usability. Are the companies that claim to drive data awareness and insights in the industry partnering with each other? Is one of their primary initiatives to make sure data is available and usable for clients and partners? Every shipping business operates differently, so there is no one-size-fits-all solution for any problem.
The webinar features:
- Leslie Dang, managing director, Singapore at Nautilus Labs
- Osku Kälkäjä, head of digital business at ABB Marine & Ports
- Gary Noonan, head of transition technologies at Ardmore Shipping Corporation