DIGITALISATION IN SHIPPING & LOGISTICS

DIGITALISATION IN
SHIPPING AND
LOGISTICS

INTRODUCTION
 The International Maritime Organization (IMO)
supports the implementation of automated
electronic data exchange from ship to ship and
ship to shore to increase efficiency, safety and
security of maritime navigation and
communications.

 Digital technologies continue to
transform industrial processes all over
the world.
 Shipping and logistics are no
exception

 GPS navigation, real-time weather data
feeds as well as smart containers are just
some of the technologies redefining the
movement of goods.
 In future, ships will inform ports of what
goods are in which containers on board
long before docking
 Allowing better planning and faster
unloading

 Containers equipped with sensors and radio-
frequency identification (RFID) transponders will
be registered and tracked for optimized transport
and distribution.
 Perishable goods, for example, will be
monitored and delivered before spoilage.
 Telematics systems and databases in freight
trucks will help reduce waiting times and
bottlenecks in ports , by keeping drivers informed
of precisely when and where containers will be

The benefits in energy savings

 Ship operation and maintenance are
also affected by the technological
advances.
 On-board machinery and equipment can
be fitted with sensors and transmitters that
report performance and early signs of
malfunction via Wi-Fi to the ship’s central
computer.
 Real-time updates on weather systems,
wind and ocean currents will enable
captains to readjust navigation for lower
energy consumption.

While real-time data on goods in transit will allow a
better overview – where a given package or container is
at what time, what goods it contains, its condition, has it
been tampered with – yet these large volumes of precise
data could also be exposed to cyber-attacks and
accidental data leakage.
Container ships reliant on digital navigation systems
could potentially be manipulated to go off course or even
run aground.
Alongside cyber and property risks, exposures include
liability, business interruption and extortion.
Whether caused by criminal intent or by accident, a
single system failure can have extremely far-reaching
consequences in an interconnected digital environment.

It will become more important than ever
for insurers to dedicate resources to risk
management as well as to understand and
model accumulation risks.
In addition, active loss prevention
focusing on digitalisation in marine
insurance will take on a greater role.
Shipping and logistics companies, software
and hardware manufacturers as well as
insurers will need to work together to
ensure maximum data security.

Marine liability issues can be expected to
become considerably more complex. Especially
in shipping through different national waters
and jurisdictions. Reliance on technology and
software also raises questions
 who is responsible for a given failure or
accident? The prospect of unmanned operation
further complicates the matter. Here again, the
risks are moving targets and the insurance
industry must follow the technological
developments and legal decisions closely.
 Knowledge gathered in other lines of
business, specifically cyber risks, can and must
be applied in the marine sphere.

2. AUTOMATED
ELECTRONIC DATA
EXCHANGE

Automation of ship reporting functions
has taken a big step forward with two
important decisions by IMO.
One concerns the introduction of the
electronic exchange of information as a
universal, binding requirement for the
purpose of facilitating the business of
international maritime traffic.
The other concerns the standardisation
and harmonisation of ship reporting in
support of e-navigation developments
aimed at simplifying the communication
of navigational safety information
between ship and shore and its
harmonised display on ship bridge

IMO’s ongoing work on standardisation and
harmonisation of ship reporting, which is within
SOLAS Regulation V/11, involves the revision of
the associated guidelines and criteria for ship
reporting systems. It concerns one of the five
selected priority tasks under IMO’s four-year
work programme (2016-2019) on the
implementation of e-navigation
The latter type of information should not unduly
burden ship bridge personnel, and it should
preferably be transmitted using standard
electronic tools such as internet, e-mail and
electronic data interchange (EDI).

South Korean delegates raised the
possibility of the maritime cloud
providing the communications
framework to support the seamless
exchange of electronic data for ship
reporting systems.

Today there are more than 470,000
refrigerated “reefer” containers,
carrying anything from bananas to
pharmaceuticals to sashimi-grade
tuna.
The system enabling this is RCM,
which stands for Remote Container
Management.
It’s simple technology – a modem,
GPS, wireless SIM card and satellite
link deployed on a global scale, and it
is changing the concept of supply
chain visibility, and the costs and

 If you think about a basic supply chain, it
stretches across the world. It involves trucks,
terminals, depots, an ocean carrier and time.
There is no end-to-end visibility and very little
control, which for refrigerated cargo is very risky.
perishable commodities are time sensitive and
require precise temperature and atmospheric
conditions.
If the power goes off on the reefer or a
malfunction occurs and it is not discovered quickly
enough in the terminal, on the truck or ship, an
entire container of goods can be spoiled.
As a result, shipping companies spends
thousands of hours and about USD 200 million
every year on physical inspections of its containers
before customers use them and continuous
monitoring of their functionality during a journey.

And since people make mistakes and accidents
happen, shipping companies also pays millions in
claims to customers for damaged cargo – most of
which is related to the power on the reefer being off
for too long.
With RCM, all of that changes. Instead of counting
on human eyes and hands to inspect and monitor
reefers all over the world, the technology does it
instead – removing much of these costs, along with
many others including the danger associated with
people walking among container stacks and handling
electricity.
If the conditions inside the container change or the
reefer malfunctions, an alarm instantly appears on
the screens of the RCM teams on shore. In the same
instant, the alarm, which describes the problem and
the level of urgency, also goes to the closest local
repair vendor.

With the physical preparation, handling and
monitoring of these containers every hour of
every day for a supply chain journey that can
last more than a month. This technology gives
us total visibility into our operations, our
suppliers, performance and our customers,
supply chains, in real-time. That’s a powerful
capability, particularly for sensitive perishable
cargo.

 It starts with the hardware mounted on all
smart containers. A GPS allows global tracking
and a modem and SIM card enable the reefer’s
atmospheric conditions and power status to be
collected, stored and shared.
A satellite transmitter mounted on vessels
picks up the data streaming from the modem
and sends it real-time to a satellite that beams it
back to the RCM teams located around the
globe.
Technology and the data flow and capture it
enables, whether it is “smart” containers or the
development of a comprehensive e-platform for
customers, is driving Shipping companies next
phase of operational and commercial
excellence.

 Individual sensors on ships already provide valuable
insight. One example is bunker consumption flow
metres, approximately 3,000 of which will be installed on
370 vessels by the end of 2017. These metres measure
fuel consumption and relay this data in real-time to the
vessel bridge and to shore, enabling shipping
companies to continually optimise the fleet’s operational
performance
Shipping Company’s Online Portal into a
comprehensive online shipping platform is well
underway. The majority of customers say they want a
predictable, self-service type process for handling their
shipping needs. An online platform will also reduce the
millions of phone calls and emails related to transaction
support that companies handles, enabling it to increase
the time it spends on developing business. The data
collected will also provide a rich source of insight into
customer behaviour

The collection and analysis of the data
the business produces across its global
footprint are also increasingly important
Companies. Here, a growing team of data
scientists in the Advanced Analytics team
are using mathematics and computer
programming code to save Companies
millions by further optimising empty
container flows, developing more accurate
container supply and demand forecasts,
and providing insight into customer
behaviour and profitability.

4. MODERN SHIP
AUTOMATION AND
CONTROL SYSTEM

Onboard and shore-based application services that use data
from navigation, machinery, and other onboard equipment,
including the ones listed below, are increasingly common.
Weather routing
Optimum trim
Performance monitoring
Engine monitoring
Condition monitoring
Power plant energy management
Remote maintenance

Automation and control system is a
fully integrated systems covering
many aspects of the ship operation
that includes the propulsion plant
operation, power management
operation on the auxiliary engines,
auxiliary machinery operation, cargo
on-and-off-loading operation,
navigation and administration of
maintenance and purchasing of
spares

4.1 Propulsion (Main Engine) and Power
(AuxiliaryEngines) Monitoring & Control
Monitoring and control of the ships propulsion
and power is essential for its efficiency and safety
and there are many systems and parameters to
consider like: fuel consumption, combustion
temperature, engine temperature, diesel engine
safety and start/stop, generator voltage and
frequency control, generator load in KW and %,
load control, torque, heavy consumers logic,
control of diesel electric propulsion, thrusters
monitoring and control etc..

4.2 Auxiliary Machinery Monitoring and Control
Auxiliary machinery monitoring and control covers
several systems like: main sea & fresh water
cooling system – pumps, system pressure, temp.
etc., Potable and fresh water control, Air
compressors, Bilge & sludge control – Tank level,
pumps, Fuel oil system – Tank levels, temp.,
viscosity, flow, purifiers, heaters etc., Other cooling
systems, Boiler/steam system – pumps, valves,
pressure temp. etc., Air Conditioning, ballast water
treatment, exhaust gas treatment equipment.

4.3 Cargo & Ballast Monitoring &
Control
For safe on and off loading of
cargo, especially on tankers, this
process is closely monitored and many
times incorporates functions like: Level
gauging, Control of cargo pumps, Valve
control, Ballast & ballast pump control,
Heeling control, Remote monitoring of
temperature, pressure, and flow.

4.4 Condition based monitoring
In order to further improve the ships efficiency many
equipment manufacturers are looking into feeding the
main control and monitoring system with opportunities
for condition based monitoring. This would further
improve the possibilities of preventing breakdowns on
board.
Auto
Temperatures of lube oil, JCW, exhaust gas, etc. are
measured.
Pressures of lube oil, JCW, fuel oil, and starting air etc.
are measured.
Flow of fuel oil is measured while running.
Tank levels of Heavy fuel oil, diesel oil, and lube oil are
measured.
For measuring the parameters we make use of the
transducers, in turn sending the input signal to the
automatic control system.

CYBER CRIMES
AND SHIPPING
INDUSTRY

Savvy criminals around the globe are exploiting
cyber vulnerabilities to perpetrate a wide range of
crimes from longstanding physical ship-related
dangers like piracy and smuggling to more recent
financial-related frauds like the diversion of
payments.
The challenge for ship owners is even more
complex because cyber criminals are targeting
diverse facets of the shipping industry. For
example, there was a well-documented case of drug
smugglers subverting an IT system at a major port
in order to facilitate the smuggling of contraband in
containers.
The rise of targeted piracy and drug smuggling
reflects how criminal organizations have become
more sophisticated. They will seek detailed
intelligence on potential targets and will use
modern technology to source information and data

While shipping and logistics companies are expert at
maritime transport, they may not have the same experience
with IT security. It will be essential to invest time, effort and
capital into security measures to ensure these cyber risks are
appropriately managed. Companies leave themselves open to
great danger when they do not take into account all the
potential risks and loopholes when designing and
implementing their company-wide cyber security strategy.
Modern maritime ships are considered a privileged target for
hackers and pirates that are increasing their pressure on the
Maritime Shipping Industry.
 Modern maritime ships are often monitored and controlled
remotely from shore-based facilities thousands of miles away
to ensure efficiency. This creates a new platform for hackers
and pirates to conduct targeted cyber attacks on ships

5.1RISKS POSED BY TECHNOLOGY
Over the past five decades, computer
controls have been integrated into
innumerable operational and business
processes across diverse industries,
including the shipping industry,
resulting in considerable
improvements in safety, accuracy and
profitability. There is another side to
the digital revolution, however. In the
absence of appropriate protection and
loss prevention measures, the
increased reliance on technology for
even the most basic operations can

 Cyber security threats today are increasing
in variety, frequency and sophistication — be
it from a Trojan USB stick that introduces
malware aimed at acquiring sensitive
commercial information… an email with
detailed vessel itineraries sent to a large
group of unknown people… the full-scale
subverting of a company’s IT system… or the
potential compromising of the Automatic
Identification System (AIS) and Electronic
Chart Display and Information System
(ECDIS) on board ships. The number of
potential risk scenarios is significant and
keeps growing. Fraudsters employ whatever
hacking technology works, often tailored to
specific targets of opportunity.

 Some organizations may be more at
risk than others depending on the type
and value of data they store. However,
experience has shown that hackers will
generally gravitate toward the low-
hanging fruit of victim networks that are
more easily breached. As such, it is
essential that companies prepare for and
expeditiously address identified
vulnerabilities.

Cyber threats in the shipping industry
can be divided into five major types,
Threats to
Ships and safe navigation
Satellite communication
Cargo tracking systems
Marine Radar systems
Automatic Identification systems

 5.2 RISKS POSED BY INSIDERS
, CARELESSNESS OR
INTENTIONAL?

5.4 HOW TO GUARD
AGAINST THE RISK
There are warning signs that an employee
might be committing cyber crime. Some of
these signs include working odd hours without
authorization; disregarding company policies
about installing personal software or hardware;
taking short trips to foreign countries for
unexplained reasons; buying things they can’t
afford; and taking proprietary or other
information home in hard copy form and/or on
thumb drives, computer disks or email.

However, you can’t let your guard down
when an employee leaves the company,
voluntarily or involuntarily. Strict
termination procedures should be in place
to ensure that all network access privileges
are terminated immediately.
Likewise, just as a company employs
security guards to monitor the parameter
of a building, to check IDs, to log who
enters and leaves, to watch security
monitors, or to implement the ISPS Code
regulations on board a vessel, the same
precautions should be taken for data.

For example, if an employee is
logged in from her work
computer and the same
credentials are used to log in
from an external location, a red
flag should immediately appear.
Similarly, if an employee is
uploading or downloading a large
amount of data for the first time,
those responsible for data
security should be alerted.

5.5 OTHER SECURITY
RECOMMENDATIONS
INCLUDE:
1. Educate staff about the need
for IT and information
security. Develop guidelines for the
use of email and safe custody of
sensitive information. Consider
who actually needs to be copied in
to emails and who should have
vessel itineraries. Also, where
possible, avoid sending messages
to third party “group email”

2. Establish clear guidelines
on the custody of key
information. Pirates and
smugglers often appear to
act on the basis of precise
information as to vessel
movements and cargo on
board.

3. Integrate elements of
both physical and logic
security to protect your
data. These should also be
fully integrated into
business continuity/disaster
recovery plans and regular
staff training.

4. Secure your supply
chain. Suppliers and contractors
are a risk because often, they have
intimate knowledge of your
operations as well as access to key
information systems. Alternatively,
they can unwittingly introduce
malware where their systems
intersect with yours.

5. Establish the extent of insurance
required so that your business has
specific cyber coverage if
required. This may include cover for
business interruption and increased
costs incurred as a result of any cyber
crime event. The use of a third party
insurer is one way to mitigate against
the financial impact of cyber crime.

6. Conduct a cyber-risk
assessment. Engage a qualified expert
to conduct penetration testing and a
thorough review of security protocols to
determine what kind of data you hold;
where that data is and where it goes;
and what processes are utilized and
why. Of the hundreds of such risk
assessments Kroll has conducted, there
has never been one in which security
measures could not be improved.

7. Establish continuous digital
monitoring so that your
information technology staff
— in conjunction with your teams
in legal, operations, marketing,
finance, etc. — will know what is
going on in your networks at all
times. In the event your system is
compromised, this will help isolate
exactly what happened and when,
which in turn will aid in recovery
efforts.

8. Work with partners who have
knowledge of the risk
landscape. It is not enough to
take all precautions for current
risks; you must also keep up with
emerging threats and situations.
While you might consider hiring
dedicated staff to monitor
emerging threats, this can prove
not only costly, but also
ineffective simply because these
resources tend to get
compartmentalized or “silo-ed,”

9. Integrate data security/cyber
risk with cyber policies and breach
response and preparedness
plans. The simple fact is that no
one is immune to an attack.
Unfortunately, without a
preparedness plan, decisions can
be made that inadvertently
compromise evidence and make
your job immeasurably harder
when trying to resolve matters.
These plans should be constantly
evolving and rigorously tested.

10. Be actively involved with
local law enforcement. This
will give your IT team and
management an opportunity to
engage with law enforcement
outside of an event and learn
more about current and
emerging risks as well as best
practices to combat them.

8. WORLDWIDE VESSEL
TRACHING BY VESSEL
FINDER

VesselFinder vessel tracking system may offer the
users chance for vessel tracking in real time totally
for free. There is also a new version of the
VesselFinder website that was launched with
OpenStreetMap interface, which is very simple and
easy for the users for AIS Live vessel tracking.
AIS Live ship tracking is a place where people may
search for their own vessel, vessel of their
competitors, all worldwide ports, latest news for
the maritime industry and business.
AIS Live vessel tracking service by VesselFinder is
a totally Free internet-based service, that does not
require any registration, it is also with really fast
interface and quite simple navigation facility.
There is also a modified simple map with little
icons for the vessels’ positions which is better for
the users for their vessel tracking.

6.1 MAIN FEATURES OF THE VESSELFINDER
SHIP TRACKING SYSTEM:
Worldwide coverage
Android and iOs applicaiont
Users may search ships by Name, IMO number,
MMSI. It is really easy for the users to enter the
vessel details in the search bar and find the desired
information.
There is detailed information in the VesselFinder
database for over 150k vessels such as: name, IMO,
MMSI, ship type, destination, master data, port
calls. Following the link, you will see detailed ship
info for container ship CMA CGM Wagner.
For all the vessels, users can find the ship
positions, track and history.

Latest marine news about incidents,
pirates, finance, new vessels, ports,
and many other curious events.
With the VesselFinder’s port database
users can check for any arriving and
departuring vessel
There is also a gallery with vessel
photographs.
VesselFinder is very friendly looking,
with really simple design and easy for
using.
Continuously expanding coverage for
ports and vessels.

CONCLUSION
Digital technologies continue to transform
industrial processes all over the world. It
also transformed shipping and logistics
Huge increase in efficiency, security and
energy savings fueled the transformation.
And the same time cyber security risks
became an issue.
With the emergence of big data and
increasingly interconnected technologies, a
second digital revolution is taking shape.
Shipping and logistics are benefiting from
these developments.

DIGITALISATION IN SHIPPING & LOGISTICS

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