Copyright: IEEE Spectrum

One peculiarity of e-commerce over brick-and-mortar shops is the inclusion of one more logistics stage, the shipping stage, to deliver ordered products to customers. The efficiency and optimization of this process largely determine business success and therefore, forms a critical part of e-commerce businesses.

The shipping industry is vital to the optimization of the shipping process for e-commerce businesses. With the rapid rise of e-commerce globally, this industry also contributes to 90% of global trade. Therefore, it's necessary to optimize the processes and systems that make up the shipping industry. Until the last decade, the shipping industry has hesitated to adopt technology into its operations.

However, the increased customer expectations for a fast and efficient shipping process means that the industry must take advantage of various technological advancements to ensure smooth, efficient, and profitable shipping operations.

Modern technologies such as augmented reality, autonomous technology, the Internet of things (IoT), robotics, machine learning, AI, drones, and blockchain are being employed to create a more optimized shipping environment with numerous benefits to e-commerce businesses. Below are some technological applications transforming the shipping industry for greater efficiency and optimized results.

Artificial intelligence

This technology is applied in the shipping industry in optimizing container arrangements in shipping vessels. Various parameters such as the weight and size of the containers and the expected time of delivery (ETD) have to be considered in the distribution and arrangement of containers in bays and shipping vessels for optimization and streamlining of the process.

Digitalization of the process using artificial intelligence can help factor these parameters for the most cost-effective and streamlined container bay arrangement. For a streamlined flow of goods and commodities, containers with earlier ETDs are arranged onto vessels arriving earliest at their destinations while those with less urgency are loaded onto later ones.

Also, AI can help reduce terminal traffic in ports and reduce space in ship vessels to below 15% - 20%. Also, shipping arrangements can be greatly improved by better cargo arrangements made possible by AI, with the order of unloading, size, and weight of containers considered in ensuring the stability of vessels and preventing damage to other containers.

Robotics

This technology has been applied in diverse industries and is being applied in shipping to enhance shipping management, safety, inspection, and servicing. An important area of application is in fire fighting, where autonomous technology is applied in building robots that can help fight fire outbreaks in shipping vessels, preventing the loss of lives and goods and the huge amounts of insurance paid.

An example is the SAFFiR – Shipboard Automated Fire Fighting Robot being developed by the US navy. Although this robot is built for naval ships, it can be incorporated into passenger and cargo ships to help fight fire outbreaks and prevent the loss of lives and properties. Robotics can also be applied in other shipping areas for greater efficiency, optimization of the shipping process, and ensuring the safety of passengers and ship workers.

Smart Ships

A combination of various technological innovations has led to the invention of smart ships. These ships can help improve the efficiency, productivity, and carrying capacity of shipping vessels due to their autonomous nature. Remotely-managed autonomous ships can help prevent the loss of lives at sea and thus change the profession greatly.

In addition, the internet of things has been applied in several corners of the cargo ship such as the control of hatch doors, bays, bulkhead systems, and hydraulics without the physical presence of a crew member. This is especially important since a shipping crew consists of only a few members. Therefore, this technology allows the captain to have more control over the ship, free up personnel for other important tasks, and save time.

Blockchain technology

The application of this technology in the shipping industry provides several benefits such as quick, secure, and transparent transactions and data management and storage, process integrity, high-quality data, lower transaction costs, ecosystem simplification, etc. In addition, a trucking company in Ajman can apply this technology for greater efficiency in operations, smooth supply chain integration, easy transfer of data, and real-time cargo tracking.

Furthermore, this technology replaces the labor-intensive traditional log book and spreadsheet method of record keeping and financial management in the shipping industry, enabling greater transparency within shipping industries through data sharing. Another implication of this technology on the shipping industry is that it simplifies processes such as recording travel logs and inventory, preventing delays, minimizing human errors and fraud, and reducing the cost of goods.

Other applications of technology to the shipping industry are in

• In Eco-Friendly ships

• Augmented reality

• Integrated control systems

• Smart propulsion systems

• Smart defense technology

• Big data

• Digital management of routes, etc.