The Future of Breakbulk and Project Cargo: Embracing Technology with Careful Digitalisation

As the breakbulk and project cargo sectors continue to evolve, digital technology is becoming an undeniable force for change. End Quote

(1888PressRelease) October 09, 2024 - The upcoming AntwerpXL conference on 10th October will feature a roundtable discussion titled “How is technology impacting the future of breakbulk and project cargo?” where industry leaders will explore how digitalisation, from file management to generative AI, is transforming this traditionally manual industry.

Ahead of the roundtable, two prominent panellists, Dimitrios Ziannis and Charis Christodoulou share their insights on what the industry needs to think about.

AI and Automation Leading the Charge

Dimitrios Ziannis, Demurrage and Contracts Specialist at Varo Energy believes that AI systems will be central to digitalisation in shipping over the next 5-10 years. “We’re already seeing programs that automatically calculate demurrage claims with minimal human intervention,” Ziannis states. These digital solutions are improving both operational and commercial aspects of shipping, potentially even leading to “digital shipbrokers,” where vessel positions and cargoes are updated in real-time, assisting stakeholders in securing their next fixture efficiently.

While short-term gains are clear, Ziannis is also focused on the long-term impacts of digitalisation, such as autonomous vessels and ports. However, he warns that digital tools must be carefully managed to ensure accuracy and minimise human error. “Computers can perform tasks like demurrage calculations faster and more accurately than humans, leading to both operational efficiency and cost reduction,” he explains. Yet, for all the potential cost savings, Ziannis stresses that digitalisation shouldn’t solely be used to eliminate jobs but to redeploy human resources for more productive tasks, ultimately boosting both cost efficiency and overall productivity.

Tackling Demurrage and Contractual Efficiency

Ziannis also speaks to the tangible benefits of digitalisation in improving contract disputes and demurrage management. “Digitalisation ensures that our demurrage calculations are correct and consistent, leading to fewer negotiations with counterparties over incorrect claims,” he notes. This transparency improves relationships between shippers, charterers, and brokers, streamlining operations and reducing operational delays.

From a supply chain visibility perspective, he points to the rising use of Automatic Identification Systems (AIS) for tracking vessel arrivals. “By verifying a vessel’s exact time of arrival through AIS, disputes over laytime can be minimised, making the entire process more transparent.” In today’s world, where even consumers can track vessel positions through smartphone apps, the potential for enhanced visibility is vast.

Emerging Trends in Smart Ports and Inland Navigation

Charis Christodoulou, a Researcher in Smart Ports and inland Navigation Economics at the University of Antwerp, focuses onbroader industry trends and the role of cutting-edge technologies. “In my view, the most transformative digitalisation trends impacting breakbulk and maritime logistics include the Internet of Things (IoT), blockchain technology, and AI,” Christodoulou asserts. These technologies offer numerous benefits, from real-time cargo tracking and delay reduction to sustainability, security, and transparency across supply chain transactions.

Over the next five years, he anticipates that smart port technologies, particularly AI and automation, will continue to drive operational efficiency while minimising human error. “AI-driven predictive maintenance, IoT-enabled tracking systems, and automated cargo handling processes are some of the technologies already enhancing logistics and reducing operational disruptions,” he highlights. Data analytics will also play a pivotal role in improving performance metrics, from cargo handling times to operational costs, allowing for better forecasting and resource allocation.

Barriers to Digitalisation: Integration and Investment

Despite the clear advantages, Christodoulou acknowledges several barriers to the widespread adoption of digital solutions, especially in ports. “One key challenge is time—it takes a considerable amount of time to fully integrate these technologies. Ports, which are often ‘slow-steaming’ organisations, have to overcome legacy systems and train personnel to adapt to new platforms,” he says. Additionally, high initial investments and the skill gap among workers further complicate the transition to digital systems.

Ageing infrastructure, especially in inland navigation, also poses a barrier to implementing digital technologies. However, Christodoulou notes that the ports of Rotterdam and Antwerp are leading by example, having already implemented many smart technologies and achieving significant operational efficiencies as a result.

The Push for Sustainability

On the topic of sustainability, Christodoulou sees digitalisation as a key enabler for greener operations. “AI and predictive maintenance can optimise vessel routes, reducing fuel consumption and emissions. IoT sensors can track energy usage, and blockchain technology can minimise paperwork,” he explains. Electrification and automation also contribute to reducing carbon footprints by enhancing energy efficiency and minimising reliance on fossil fuels.

While Ziannis agrees that technology plays a role in sustainability, he believes the issue is more technical than purely digital. “Reducing the carbon footprint requires better engines, scrubbers, and more efficient port installations. That said, a more efficient supply chain, driven by digital tools, could reduce the need for excessive operations, indirectly contributing to a lower carbon footprint,” he remarks.

The Future of Smart Shipping

Looking ahead, Christodoulou foresees an increasing reliance on automation in the breakbulk logistics sector. “AI will become critical in decision-making processes, helping optimise logistics and improve forecasting accuracy,” he says. With mega-ports like Antwerp and Rotterdam already adopting these technologies, the trend toward smarter operations is inevitable. However, the pace of adoption will depend on each port’s infrastructure, financial capabilities, and workforce training.

Ziannis also envisions a future where digital tools and AI systems play a central role in shipping. However, he emphasises the importance of maintaining a balance between human expertise and automation. “Shipping will always be a people business. While technology can handle operational tasks, negotiations and decision-making are still areas where human intuition is indispensable,” he concludes.

As breakbulk and project cargo industries embrace digitalisation, the potential for improved operational efficiency, cost reduction, and sustainability is clear. However, as Dimitrios Ziannis and Charis Christodoulou highlight, challenges remain in integrating these technologies, ensuring workforce readiness, and maintaining the delicate balance between automation and human oversight. For those attending the AntwerpXL roundtable, these insights will offer a roadmap to navigating the digital future of breakbulk and project cargo.

The conference officially commences on 9th October, showcasing a packed and dynamic line-up of industry leaders. Join experts like Ziannis and Christodoulou, among others, for an in-depth conversation at AntwerpXL on 10th October. They will explore transformative technologies and their pivotal role in shaping the industry's future. To register to attend AntwerpXL(AXL), click here. To view the full conference agenda, please click here.

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