Shipping is a centuries-old industry, but in the age of automation and same-day deliveries, it needs to move at breakneck speed.

Shipping is entering a period of “incredible experimentation” according to a recent McKinsey report.

The shipping industry, and ports everywhere, are on the cusp of the fourth industrial revolution, when cognitive and mobile machines, powered by data, will be as transformational in the 2020s as the launch of steamships was in the 1820s. It comes at a time of incredible opportunity: the global shipping industry carries 90% of global trade, moving more than US $4 trillion of goods every year. However, growth in global trade is contracting, in part because of national sentiments, and everyone is under pressure to find efficiencies.

The key question for Canada is: how do we ensure our tech-enabled ports are world-class?

This is key to our competitiveness. Canadian ports compete with U.S. ones and our ability to get imported goods through quickly impacts how much of our own production we can ship out.

At our RBC Disruptors conversation in Halifax on Wednesday, we’ll explore the opportunities and threats the industry faces with the rise of digital, data, analytics and automation. This is a sector traditionally focused on physical assets — but in the digital era, old business models will be disrupted and new value streams created.

Here are 6 key developments that illustrate the transformation of shipping as we know it:

  • The world’s first zero-emissions, fully electric, autonomous container ship will set sail in Norway in 2022. The Yara Birkeland is not a particularly large cargo ship, measuring 70 meters. But when you consider there won’t be any people aboard – that’s suddenly a lot of extra cargo space.
  • Led by Maersk and IBM, the maritime industry is replacing complicated paperwork with Blockchain technology. Parties can now undertake real-time exchanges of supply chain documents, securely sharing Certificate of Origin and customs clearance information.
  • Maersk opened the world’s first automated terminal in Rotterdam in 2015. A human operator sits in an office, overseeing operations in front of a computer. Automated cranes load and unload cargo, moving containers to automated guided vehicles (AGVs) on the ground.
  • The Port of Qingdao on the Yellow Sea in China was opened as Asia’s first fully-automated port in 2017. Using artificial intelligence, this “ghost post” operates 24/7, even in complete darkness. A testament to China’s efficiency: it only took three years to build the terminal from scratch.
  • Drones are increasingly being integrated into everyday port activities, assisting with vessel navigation, traffic control, and security. As of March 2019, Airbus is experimenting with drone deliveries in Singapore, delivering time-critical maritime supplies to working vessels.
  • On land, at sea, and right inside containers, sensors are gathering data and making it easier to track cargo, emissions, temperature, and tides. A Port of Rotterdam-IBM collaboration plans to use this data to make decisions that optimize ship arrival and departures times. This is all part of the Dutch port’s plans to be ready to host autonomous ships by 2025.

 

As Senior Vice-President, Office of the CEO, John advises the executive leadership on emerging trends in Canada’s economy, providing insights grounded in his travels across the country and around the world. His work focuses on technological change and innovation, examining how to successfully navigate the new economy so more people can thrive in the age of disruption. Prior to joining RBC, John spent nearly 25 years at the Globe and Mail, where he served as editor-in-chief, editor of Report on Business, and a foreign correspondent in New Delhi, India. Having interviewed a range of prominent world leaders and figures, including Vladimir Putin, Kofi Annan, and Benazir Bhutto, he possesses a deep understanding of national and international affairs. In the community, John serves as a Senior Fellow at the Munk School of Global Affairs, C.D. ‎Howe Institute and is a member of the advisory council for both the Wilson Center’s Canada Institute and the Canadian International Council. John is the author of four books: Out of Poverty, Timbit Nation, and Mass Disruption: Thirty Years on the Front Lines of a Media Revolution and Planet Canada: How Our Expats Are Shaping the Future.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.