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DCSA unveils new era of smarter supply chains with track & trace standards

The Digital Container Shipping Association has unveiled its new T&T standard for tracking containers while en route between shipper and consignee.  They are quite detailed and have been planned using some of the latest design thinking techniques, including the definition of personas who might use the system one way or another. They’ve prepared some very nice slide shows to describe at a high level what they are doing.

DCSA was launched by MSC, Maersk, Hapag-Lloyd and ONE last April, with CMA CGM, Yang Ming, Evergreen, HMM and Zim joining a month later. This is a fairly quick turnaround for a first standard delivery.

The catch will be how fast people start sticking to them when building equipment and systems. Doing so can be predicted to help sales, via a network effect– since the standards make systems compatible, there’s less hassle making one system relate to another.  A close review should be done of the standards, to see how many choices individual participants are given to make the information specific to their needs.  Such choices tend to produce systems that lose their compatibility if one of the partners changes, and make specific programming necessary when others try to adapt to the system. It’s the anthesis of cooperation.  And these standards are meant to promote cooperation rather than competition.

An example of the issue can be seen with EDI, in which general record structures are defined, but a lot of latitude is given to provide extra information or different information. The result is that EDI needs to be specially programmed for each pair-wise interaction of companies, a problem that has haunted us for 20 years even though
EDI, in general, was a big step forward.

Let’s hope that we all have learned from the past, and can use the standard to really lubricate information flow in supply chains.

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By via New era of smarter supply chains as DCSA track & trace standards are unveiled – The Loadstar
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Fuel transition charges flood in

Here are a few of the initial announcements on fuel surcharges to compensate carriers for the IMO2020 rule requiring 0.5% sulfur fuel or equivalent scrubbing equipment.  The current gap is $171.00 between MGO and VLSFO as seen on this graph from shipandbunker.com where you can add several grades to the graph. It’s a 20-port average reported here.  A useful site.

You can see from the article that the firms are soft-pedaling the surcharges to keep from losing too many shippers.  Probably a good strategy at the start. I believe long term as refineries gear up for LSFO that the spread will narrow.

And of course you don’t have to buy MGO, you can use the dirty fuel which is cheaper.

screenshot-splash247.com 2017-11-16 08-27-01-343

via Fuel transition charges flood in – Splash 247

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Moody’s: Port Automation May Not Always Deliver Results

I found this article via Gavin van Marle of Loadstar. It’s not a surprise that automation may not deliver the results its backers were touting.  So much depends on the external systems, such as the computer planning, the labor system, the users’ habits and preferences, and the timing and size of the workload presented.  If they’re not all considered and planned together, results will not be as good as they could be.

The labor arguments we see nowadays surrounding automation at ports are another fascinating aspect.  There hasn’t been any national conversation here in the US around the relation between automation and jobs.  The present political environment here in the US works against it.  This is probably true elsewhere as well.

Some jobs probably ought to be taken over by machines. Some probably shouldn’t. And what do we do for the displaced workers, or for workers who want to participate in the automation boom, but don’t have the skills yet?  there needs to be a broad conversation around automation and workers.

That’s how I read the Pier 400 controversy at the Port of Los Angeles. The recent turndown of the project by the commission asks for an extended conversation between unions and the port about just this man-machine question and how it should affect the workplaces.  It’s a good conversation to have. Intransigent positions aren’t going to help at all.

screenshot-Maritime Executive 2019-05-21  via Moody’s: Port Automation May Not Always Deliver Results