By Stig Martin
Fiska, Global Head of Cognizant Ocean
Australia’s economic lifeline flows through its bustling ports, with over 99% of the nation’s international trade carried by sea. As the world’s leading exporter of iron ore, coal, and unwrought lead, and the second-largest exporter of aluminium ores, Australia’s prosperity is anchored in maritime trade. Conversely, Australia’s largest imports – petroleum, motor vehicles, pharmaceuticals, communication equipment, and computers and electronics – all come here in ships.
The significance of shipping extends beyond logistics; it is the backbone of Australia’s economy. This makes innovative solutions pivotal to keep this industry resilient and sustainable.
However, the shipping industry currently faces numerous challenges, from severe weather to geopolitical troubles and even cyber-attacks. For example, in November protests at the Port of Newcastle stopped the export of 500,000 tonnes of coal from Australia’s largest port. Similarly, recent industrial action and cyber-attacks have slowed and even shut down many of the nation’s busiest ports impacting businesses and consumers both locally and globally.
The emergence of Artificial Intelligence (AI) can reshape the shipping industry, offering unprecedented opportunities to optimise operations and enhance efficiency. AI technologies can predict and circumvent disruptions, ensuring seamless supply chains and cost savings. Improving fuel management, route optimisation, and real-time decision-making can address critical challenges, boost operational efficiencies, and contribute to global sustainability goals overall.
As climate change accelerates, the shipping industry must also become more sustainable. By implementing innovative technologies, shipping companies can boost efficiencies, improve their bottom line, and work to decarbonise our oceans.
Navigating Unpredictability to Unlock Data’s Potential and Preserve our Oceans
Potential disruptions can make predictability a challenge. Gen AI helps to translate the information and support the operator in challenging the options coming from the AI brain and understanding how it landed on those alternatives, so an educated decision can be made. Australia can benefit from AI-driven insights to optimise shipping routes and schedules, particularly at major ports like Sydney, Melbourne, and Brisbane, improving turnaround times.
Many companies have data in silos but lack the resources to analyse it effectively. For example, fuel management is often done manually, based on human experience. Combining applied AI such as machine learning or deep learning with Generative AI’s Large Language Models (LLMs) can automate processes, saving time and enabling data-driven decisions. This optimisation will play a key role in our efforts to reduce the environmental damage to our oceans which is only accelerating. In December 2023, the United Nations adopted resolutions highlighting the threats to our oceans, aiming to conserve at least 30% of marine areas by 2030. Generative AI and LLM tools can create effective environmental impact monitoring systems, helping ships avoid causing damage to the ocean and its biodiversity.
By leveraging AI, more accurate forecasts of port congestion can be achieved, by understanding the competing priorities of vessels and considering the impact on air pollution and the disturbance of biodiversity that surrounds many Australian ports. AI can analyse larger datasets, enabling more advanced and accurate congestion warnings, while presenting new alternatives that consider all variables for operators. These complex problems can be addressed more effectively with AI, potentially expanding solutions and introducing new ways for managing congestion while maintaining awareness of environmental impacts and risks.
The Trust Factor
Despite the buzz around AI technologies, many in the shipping industry are hesitant to trust AI over their own experience. However, AI can offer reassurance that the most appropriate actions are being taken based on real-time data analysis. This technology can help workers upskill and use modern tools, reducing costly disruptions and improving efficiency. This efficiency can help meet environmental goals and attract sustainability-minded customers and investors.
Implementing AI tools in the shipping industry is challenging due to inherent human scepticism and the involvement of many stakeholders, including ships and ports. The industry must collaborate to break down information silos and improve operational insights to maximise AI technologies. Coordinating all the data involved is difficult, especially with limited resources.
Changing and investing in new areas like data and technology isn’t easy, but the benefits are significant. Instead of viewing AI implementation as a massive project, shipping companies should take it step by step. Even small sustainability efforts can significantly reduce carbon emissions. Making operations as efficient as possible while working to decarbonise our oceans is crucial as the world becomes more geopolitically, environmentally, and financially unpredictable.
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