Growing focus on environmental, social and governance (ESG) criteria is driving demand in shipping for digital technologies, according to industry experts.
Leading classification societies told TradeWinds that shipping firms began to digitalise more of their work processes due to environmental regulations that came into force in recent years.
The European Union has required vessel operators to report carbon-emissions data based on its monitoring, reporting and verification rules since 2018, while the International Maritime Organization has had similar requirements in its Data Collection System since 2019.
Andy McKeran, maritime performance services director at Lloyd’s Register, said the reporting systems have “created the foundation for the digitalisation of processes” for many companies.
“They were required to get a system in place for reporting,” McKeran said. “Since these regulations have come into force, we have been approached by a number of clients that then saw the potential for a digital approach to ship management.
“Once our clients had a solution in place to monitor emissions, most of them have since decided to gradually digitalise more and more of their departments.”
“We now see more and more companies leveraging sensors and other technologies to help gather quality real-time data,” he added.
Aside from regulators, maritime transport companies are also facing pressure from charterers and financiers to reduce their greenhouse gas emissions.
McKeran said pressure from such industry stakeholders is forcing companies to accelerate the use of digital applications to better report on emissions and reduce fuel consumption.
Sharing a similar view, DNV technical support director for maritime Marianne Valderhaug said growing concern about GHG emissions from “all corners of the supply chain” is driving demand for more transparency.
“Transparency means that shipping companies will be required to present their fleet’s performance data which will be measured and benchmarked against competitors,” Valderhaug added.
“It is impossible to provide emissions-performance data efficiently without using digital technologies to ensure efficient data collection, verification of data and presentation of reliable results.”
Corporate responsibility
During the coronavirus pandemic, crew welfare has come under the spotlight with many seafarers unable to complete their shifts on time.
Industry estimates suggest hundreds of thousands have been stranded at sea for months, or even quarters due to tight immigration control in many countries.
Shell, which operates one of the world’s largest fleets, said it adopted various digital applications to enhance crew well-being during the difficult period.
The energy major’s global shipping head Grahaeme Henderson highlighted the role of Scoutbase, a start-up venture with which Shell has been working closely.
“It allows the crew to provide continuous feedback, anonymously, using purposely designed questions and answers related to all aspects of crew work and life on board, but especially mental health and well-being,” he said.
Henderson added that Shell has used its application for almost a year, with a response rate of about 90%.
“[The system] aims to give the crew a direct channel to the fleet management team, allowing them to build a better picture of the issues seafarers may be facing on board and provide more targeted support for their well-being,” he said.
Lasting impact
Tore Morten Olsen, president of maritime at connectivity provider Marlink, said the pandemic also pushed shipping companies to enhance their ability to manage vessels with technologies.
“The dramatic increase in remote working last year extended to ships,” Olsen said. “The ability to access bridge systems and other shipboard equipment has encouraged monitoring for safety and performance.
“It’s also easier to install and upgrade software remotely these days, and applications like telemedicine really came of age with some customers upgrading across their fleets.”
Looking forward, consultancy Maritime Partners managing director Jorn Annweiler believes the automation of ESG reporting would be in fashion with more decarbonisation regulations coming online.
In his vision, ship operators would aim to collect data on emissions, waste and cargo efficiency, among other items, for regulatory and business needs.
But Annweiler admitted this would not be everyone’s cup of tea due to cost considerations.
“I think maybe 30% to 40% will do it digitally,” he said. “The rest will continue to do it in a manual, inefficient way.”
“Because people see it as a cost, not revenue … They don't really get much revenue from this [automation].”
