Tag Archives: innovation

As DCSA and shippers work to develop eBL standards, forwarders remain wary

This article gives both sides of a discussion on the importance and readiness of the maritime and shipping industries for an electronic bill of lading.

One point made in the article by forwarders is that in the present market, changes are occurring so frequently that the bills of lading have to change frequently. The changes are happening because the congestion and resilience or lack of it currently in many supply chains is forcing frequent revisions of transport plans. That forces eBL revision, since the exactness of the details of transport is essential in building a valid eBL.

But it’s always been the case that digitalization or automation requires a change in the manual or human procedures surrounding the creation of information. Those who are naysayers need to face up to the fact that a ‘draft’ eBL needs to become the standard of creation of an order for transport. That’s true if you’re a carrier, a shipper, a forwarder, ora 3PL.

It means that every system for booking shipments needs to transition to use of the eBL as THE document defining the offer. No participant will be able to afford to have their own forms for creating or ordering a shipment. That is going to be a challenge for the myriad systems brokers and shippers use. Each of them must be forced to include the eBL structure in their system, and make it the ONLY way orders are drafted and contracted for.

That’s not quite as bad as it seems. Once the system has the ability to draft the eBL for a shipment, many of them can be prepared in advance. For instance for a customer that regularly books shipments of specific goods, the eBL can be prepared in advance as a draft, and only needs human and system interaction for approval. We know from many years of practice implementing systems that draft information can be tuned by the computer to match most of the required patterns for most shipments, so

Brokers who are concerned about constant churning of eBL information can take heart; using pre-prepared standard eBLs will eliminate 80% of the job or so; the exceptions are a lot fewer than they think.

What that also means, however, is the job of booking an order changes. The customer service agent has a lot less paperwork to do, and that may in her view reduce her ‘importance’ to the shipper and the process. They lose status and the opportunity they had in the past to influence and relate to the shipper. That might be their fear.

However, they should not fear. It’s well understood from previous system implementations in many areas from payrolls to HR to ERP and many more areas, for at least 4 decades. The job changes, and opens up many more opportunities for sales reps to be of actual use to their clients by removing the burden of paperwork. And the change is from a repetitive operation to an exception handling process.

Shipping sales rep may well become a job that requires a different type of person from the incumbents; but that should not be a reason to avoid doing it. It means retraining incumbents or encouraging them to move on to a job they are more comfortable in.

The eBL standard development and acceptance process will be key over the next few years. The faster it can happen, the better.

By Charlie Bartlett 04/08/2022

As DCSA and shippers work to develop eBL standards, forwarders remain wary – The Loadstar

Gig driver for a day. Here’s what we learned making deliveries for Veho

Here we see a day in the life of a package delivery driver for Veho, which seems to be an enlightened last-mile delivery company that is actively trying to make work friendlier to the driver. The system they have developed tries to take into account driver needs as well as those of the customer and the shipper.

One of the major factors involved in keeping a workforce today is giving workers input and making the workplace friendly for them.

Veho seems to be using that principle to drive their business. Let’s hope it is successful for them.

One downside of this approach is the need for a depot where the packages are brought before the routing is done. That’s a capital expense that not all services will want to implement. It also slows up expansion into new markets, since the warehouse sites must be found and built out. However, the depot is key to the optimization for all the involved parties, including the driver.

Brian Straight Wednesday, August 3, 2022

Gig driver for a day. Here’s what we learned making deliveries for Veho | Modern Shipper

Liners get a preview of alternative fuel costs

A new technical and commercial comparison of alternative fuels for ocean carriers compares expected bunker costs for different size and differently equipped ships. Alphaliner, a consultancy for ocean carriers, has reviewed that comparison.

Alphaliner’s review shows the ship owner and operator what they can expect in economy over the next few years. The results indicate that as the new regulations for CO2 emissions kick in, fuel costs will become a much larger percentage of total ship operating costs, perhaps double, or even more.

For instance, the graph they publish shows fuel costs for differently equipped Megamax-24 (MGX-24) ships. A megamax-24 ship is typically 400 meters long and 61 meters wide, with a depth of about 33.2 meters. It should carry around 23,500 twenty-foot equivalent (TEU) containers (Alphaliner newsletter).

The graph compares use of fossil fuels, bio fuels, and power-to-fuel (PtX) fuels (read about them). The PtX fuels convert renewable sources such as wind, sun, hydro, and geothermal, to fuel products such as hydrogen, ammonia, or products containing carbon, such as syn-crude. If carbon is used in the PtX process it should be from non-fossil sources or unavoidable industrial carbon emissions capture and reuse.

Source: Splash247 article.

Even bio-fuels cost a lot more than conventional fuels when all the upstream supply chain emissions are considered, for these very large ships.

The graph seems to imply that scrubbers are still a very important technology in the fight to clear the air. And LNG has a role to play, though it might be temporary. At their best, the PtX technologies such as electric-powered ships are comparable to or better than bio-fueled vessels.

There’s clearly a long way to go for ocean shipping to go where it needs to in the race to clean up global emissions.

However, some of these non-fossil technologies will adapt over the next few years, and costs will come down. It’s hard to do much more with the fossil fuel technology.

The argument Alphaliner makes is that soon fixed costs will be a smaller part of the total cost of a large ship than fuel operating costs. As these proportions change, emphasis will come more on building ships with desirable emissions control power systems, since the availability and price of fuel will be driving overall costs.

That’s an interesting point. We will see the extent to which it influences the next generation or two of ship orders.

Sam Chambers July 27, 2022

Liners get a preview of alternative fuel costs – Splash247