Tag Archives: technology

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China cargo collapse

This interesting article shows how CargoMetrics is using data on ship lading, IoT readings, and vessel tracking to determine the amount of trade to and from China right now. the Coronavirus problem in China has essentially caused ocean commerce to and from China to plummet since Chinese New Year (CNY).

Bulk shipments such as iron ore and coal have dropped over 40% according to the article. Container shipments out of China have also dropped, probably due to the disruption of work schedules at Chinese manufacturers.  There are also issues involving quarantine of ships and cargos due to the virus.  The article is especially good when it uses graphs to show the changes.

Of course, this is a great promotion for Cargometrics’ capabilities.  I think one would have to look closer to discover how well Cargometrics’s data truly represents the entire range of activity, but the trends shown are certainly marked.

One very interesting fact the article gives is that petroleum imports have not dropped yet; they are up by a considerable amount. This may be due, so they say, to the longer transit times. The ships may have to lie to near Chinese ports when they cannot unload due to the quarantines or port handling issues.  The other shoe may yet fall even in the tanker business.

 

American Shipper 2020-02-22 074814     Greg Miller, Senior Editor   Thursday, February 20, 2020  via CargoMetrics data reveals depth of China cargo collapse – FreightWaves

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Blockchain not yet for supply chains

Gartner says 80% of blockchain supply chain developments won’t get out of design and development for several years.  So many of them are just recycling financial blockchain ideas into supply chain space without understanding the issues.  A case of a solution chasing a problem, the bugaboo of ITY initiatives forever.

I’d like to get my hands on this report from Gartner.  It should be interesting.

The Gartner source below says 90%!!! I like that number better as an estimate.

Here’s a quote from the latter press release from Gartner:

“The budding nature of blockchain makes it almost impossible for organizations to identify and target specific high-value use cases. Instead, companies are forced to run multiple development pilots using trial and error to find ones that might provide value.  …

Furthermore, current creations offered by solution providers are complicated hybrids of conventional blockchain technologies.”

Exactly.

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 via Blockchain may be the way ahead for supply chains – but not yet – The Loadstar

Another source: https://www.gartner.com/en/newsroom/press-releases/2019-05-07-gartner-predicts-90–of-blockchain-based-supply-chain

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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