{"id":1836,"date":"2023-05-05T06:17:00","date_gmt":"2023-05-05T05:17:00","guid":{"rendered":"https:\/\/portstrategy.nfdtesting.uk\/coastlink\/2023\/05\/05\/holistic-contracts-needed-for-shipping-efficiency-says-bimco-director\/"},"modified":"2023-05-05T06:17:00","modified_gmt":"2023-05-05T05:17:00","slug":"holistic-contracts-needed-for-shipping-efficiency-says-bimco-director","status":"publish","type":"post","link":"https:\/\/www.portstrategy.com\/coastlink\/2023\/05\/05\/holistic-contracts-needed-for-shipping-efficiency-says-bimco-director\/","title":{"rendered":"\u2018Holistic\u2019 contracts needed for shipping efficiency, says BIMCO director"},"content":{"rendered":"<p>\u201cThey can create inefficiencies in our industry that we need to iron out,\u201d he said. \u201cWe need to work with the entire supply chain pipeline, not just between shipowner and charterer. There is no point in having an agreement if it is not aligned with what\u2019s in the sales contract.\u201d<\/p>\n<p>Hunter said more joined-up thinking was needed to make shipping more efficient.<\/p>\n<p>Using just-in-time arrival can deliver decarbonisation, he said \u2013 \u201cbut when you get to Net Zero, do you just go back to the Wild West, speeding around again? No, because there are going to be more expensive fuels. We need a smooth and efficient industry.\u201d<\/p>\n<p>Digitalisation is inextricably entwined with decarbonisation, said Hunter. Meanwhile, the industry also needs to focus on contractualization. \u201cWe need to find ways to make shipping more efficient by the business model that we use.\u201d<\/p>\n<p>Collaboration is central to it all, he said. \u201cWe cannot reduce emissions from shipping if it is just left to the owner. We have to think about a brand new model for shipping and move away from the charter parties of old.\u201d<\/p>\n<p>Instead, he said a new \u2018holistic\u2019 business model is needed for the 21st century, providing efficient and inclusive shipping.\u201d<\/p>\n<p>Hunter made his comments during a panel discussion on \u201cDriving Efficiency through Data and Port Collaboration\u201d.<\/p>\n<p>Ross McKissock, director of unitised at Forth Ports, posed the challenge: \u201cWe have the data \u2013 what do we do with it?\u201d<\/p>\n<p>Data can be used to drive efficiency, manage berth and terminal capacity, improve environmental performance, build operator training programmes, automate repeatable processes and identify bottlenecks in supply chains, said McKissock.<\/p>\n<p>He explained Forth Ports\u2019 \u2018journey\u2019 from five years ago: \u201cWe realised that the port holds huge amounts of data and all we did was end-of-month reporting and a little bit of commercial analysis. In the format we had, it didn\u2019t really satisfy user demand.\u201d<\/p>\n<p>As well as being stevedores and terminal operators, etc., Forth Ports was increasingly required to facilitate conversations commercially, be aggregators of demand, understand what\u2019s moving, why and where to\/from, and work out how to develop a more efficient mode of operations, said McKissock.<\/p>\n<p>Early gains have included driving out cost and optimising berthing through a \u2018transformational\u2019 AI-based berth predictor, and understanding which containers stay on the quayside for longer and stacking accordingly.<\/p>\n<p>\u201cWe have changed our whole operating model through the use of data and analytics,\u201d he said. The next stage will be to \u201csprinkle in some AI and machine learning\u201d to gain more from the data.<\/p>\n<p>However, this is not just about efficiency and cost, McKissock emphasised. \u201cWe have talked [at Coastlink] a lot about environmental performance and Net Zero. A late ship in a port will have a higher environmental impact than a ship that is on time. It is unplanned, you are likely to have to move the boxes further to get them on to the vessel, with the CO2 impact.\u201d<\/p>\n<p>Meanwhile, training operators using simulators instead of live and expensive equipment has delivered results. \u201cWe let people fail digitally and become a better driver as a result. As a consequence of using models, we have slowed our equipment down. We made it slower because people then know that they can\u2019t just nip into a little gap \u2013 so they are driving more safely to the conditions at a steadier rate, the fuel burn is improved, and maintenance is better because of reduced damage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>International shipowners\u2019 association BIMCO is famous for creating a range of charter party agreements that are central to the way the global shipping industry works \u2013 but Grant Hunter, BIMCO\u2019s director, standards, innovation and research, told the Coastlink audience that some of the standard bi-party contracts go back 100 years and are not fit for today\u2019s industry.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[39,7],"tags":[],"sponsor":[],"class_list":["post-1836","post","type-post","status-publish","format-standard","hentry","category-news","category-news-coastlink"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/1836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/comments?post=1836"}],"version-history":[{"count":0,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/1836\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/media?parent=1836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/categories?post=1836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/tags?post=1836"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/sponsor?post=1836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}