Five of the world’s top container shipping companies are planning to form a group to spur the digitalization, standardization, and interoperability of the sector.
A.P. Moller-Maersk, CMA CGM, Hapag-Lloyd, MSC, and Ocean Network Express (ONE) have announced a plan to establish a container shipping association “with the purpose of paving the way for digitalization, standardization and interoperability in the container shipping industry.”
The still unnamed association will be a neutral and non-profit entity that is expected to start operating by early 2019, subject to any applicable regulatory requirements, said a joint statement dated November 15.
IT executives from Maersk, CMA CGM, Hapag-Lloyd, MSC, and ONE are “currently discussing the creation of common information technology standards which shall be openly available and free of charge for all stakeholders of the wider container shipping industry,” continued the statement.
“It’s in the customers’ and all stakeholders’ best interest, if container shipping companies operate with a common set of information technology standards,” said André Simha, CIO of MSC and spokesperson of the group.
“We are striving for less red tape and better transparency. The timing is right, as emerging technologies create new customer friendly opportunities. Together, we gain traction in delivering technological breakthroughs and services to our customers compared to working in our own closed silos,” he added.
While the shipping industry already has multiple organizations and associations, the members of the group identified a need for a neutral and non-profit body for ocean carriers that is driven by delivering benefits for the industry and its stakeholders.
“That is why we will also welcome new members with open arms to join the association,” said Simha.
The association has no intention of developing or operating any digital platform, but aims to ensure interoperability through standardization. Similarly, the association will not discuss any commercial or operational matters, said the statement.
“Digital is key for A.P. Moller-Maersk in delivering on our strategy to become an integrated container logistics company that offers simple, end-to-end services with seamless customer experience,” said Adam Banks, chief technology and information officer of Maersk.
“Being a founding member will enable us to work together on setting the standards for digitization of the entire industry,” said Rajesh Krishnamurthy, executive vice president of IT, CMA CGM.
“Hapag-Lloyd welcomes the creation of this association as we firmly believe that the challenges of the future can only be tackled with a common approach,” said Martin Gnass, managing director of IT, Hapag-Lloyd.
“MSC believes that we’ve reached the point in the carrier world where we need something that is common, open and done in the framework of a neutral and non-profit association,” said Simha.
“We believe this style of collaboration can bring value and opportunity to our customers as well as logistics companies, leading shipping and logistics industry to new ecosystem of digital supply chain,” said Noriaki Yamaga, managing director of corporate & innovation at ONE.
Earlier this month, nine global container shipping industry players announced they will create a blockchain consortium to “enable the shipping industry to digitally transform and to prepare for innovative supply chains.”
Five ocean carriers—CMA CGM, COSCO Shipping Lines, Evergreen Marine, OOCL, and Yang Ming—and four terminal operators—DP World, Hutchison Ports, PSA International Pte Ltd, and Shanghai International Port—signed November 6, 2018 a formal statement of intent for a memorandum of understanding to form a consortium to develop the Global Shipping Business Network, an open digital platform based on distributed ledger technology.
Photo: Srilekha selva
