Profitability vs. Expansion: Shipping Software is Key for Survival in Container Shipping

Maritime shipping companies forecast rough sailing ahead due to a slump in global demand for container shipping and continuously increasing fuel prices. Add to that the growing supply of new ships driving competition for cargo and freight rates to a critical level. With this, shipping companies are steering farther toward cost-cutting and maximizing profit, setting aside other considerations such as expansion in the meantime. As has been pointed out by experts repeatedly, implementing functional shipping solutions software plays a critical role in achieving this goal.

Last year, A.P. Moller-Maersk, the world’s biggest container shipping company, warned of a slowing global trade in shipping. Earlier this year, the world’s biggest container carrier reported a 35 percent decline in its first quarter profit from last year, despite exceeding its first quarter target. Additionally, the shipping giant forecasts that its 2013 profit would be lower than that of 2012 even though it expects to surpass last year’s earnings of $461 million.

Whether it is good or bad news for the world’s leading container carrier, these results reflect the dire reality that shipping companies are struggling to stay in profit as a result of increasing costs of operation. The situation must be even more painful on the part of smaller, low capacity carriers. To address this problem, shipping software companies continue to develop advanced shipping company software designed for the very purpose of increasing the efficiency of ships, ports, and terminals and improving profitability.

Maritime software solutions are proven to streamline container shipping operations and enable operators to minimize common errors that can potentially incur significant damage and costs. Shipping companies, big or small, need to wise up and focus in improving profitability first, before considering other options such as expansion. In this time of tough climate for container shipping, business is truly a game of survival of the fittest, and automation using integrated shipping software is the best way to win.

How Liner Agency Software Helps in Reducing Greenhouse Gas Emission

About 5% of the world’s greenhouse gas (GHG) emissions come from merchant vessels. As the volume of maritime trade continues to grow rapidly each year, this figure is expected to rise in the following years. It is not surprising therefore that the shipping industry is under a lot of pressure from governments and environmental groups to take steps to reduce carbon dioxide emission from their ports and vessels. One way the shipping industry responds to these pressures is by adopting the concept of green or clean shipping which involves improving energy efficiency through use of marine software solutions and other shipping technologies.

Efficiency in shipping can be achieved in many ways. For some it can be as simple as switching to a different power source such as biofuel and nuclear power. Other measures implemented in the past few years include use of more efficient engines, propellers, and propulsion systems, reducing vessel speed, re-designing vessels to improve hydrodynamics, and installing better navigation tools. All of these measures have worked so far, but still there are so many improvements left to be made.

So, what is the role of shipping company software in carbon dioxide emission reduction?

As it appears, the above-mentioned measures are mainly technical and operational in nature – not directly related to shipping software. However, operators can make more informed decisions when implementing these measures if they have reliable liner shipping software to support the technical and operational components of their logistics process.

For example, in managing vessel speed, vessel operators must take into account several factors including load, voyage distance, arrival schedule, and external factors such as weather and sea conditions. Shipping companies can generate these data by integrating voyage calculation software into their shipping process. Using this software, vessel operators can determine the right timing to reduce (or increase) vessel speed to increase fuel efficiency and reduce emissions while ensuring that vessels arrive at their destination on time.

Another way liner agency software helps reduce emission is by streamlining communication systems between ports and vessels. Studies found that while most emissions happen during navigation in the vast expanse of the ocean, a significant amount of emission is produced while ships are moored in ports. While berthed in these ports liner vessels usually leave their primary engines idled to generate electricity to support onboard systems while loading and discharging cargo. Emissions from these activities account for about 5% of total emissions from navigation activities.

Considering the amount of time container vessels spend moored in ports, and the proximity of these ports to populated areas, there is reason for everyone involved to worry about health and environmental risks coming from emissions from shipping activities in and around ports. Integrated shipping software streamlines communication between ports and vessels to facilitate forecasting of incoming vessels and ensure that vessels move in and out with minimal obstruction. Port operators can then carry out plans to ensure a smooth flow of traffic especially in busy harbors and avoid port congestion. This helps reduce the time liner vessels spend berthed and likewise the amount of emission they produce around the area.

A Caveat on Implementing Shipping Software Solutions

As marine shipping requirement change, shipping companies are always on the lookout for best possible maritime logistics solutions. When marine software solutions were introduced to the maritime supply chain industry, shipping became a lot different for ship owners, operators, and logistics service providers. Since then, most processes involved in liner shipping have been automated, leaving only a few areas of business untouched, particularly those which required manual operation. Yet, it is no surprise that nowadays many logistics programs are powered entirely by integrated shipping software.

As it appears, full automation of the shipping process seems to be the ultimate goal of every shipping company. Or it may not be. Either way, what is clear is that shipping software companies are unceasingly trying to find ways to make shipping more convenient and efficient. Time and again, new software solutions are being developed – for tracking freight (container tracking software), reducing cost and improving shipping voyage efficiency (voyage calculation software), or detecting issues involving containers (container repair software).

Additionally, there have been significant efforts by these companies to create something resembling an end-to-end or all-in-one solutions capable of managing all aspects of shipping process which includes:

·         Data Encoding

·         Documentation / Inventory

·         Load Management

·         Voyage Calculation

·         Tracking

·         Billing

·         Compliance Filing

·         Reporting, etc.

Having end-to-end shipping company software can significantly improve performance and reduce costs. However having good shipping software alone is not enough. Ship owners and operators must realize that it is in having a reliable logistics infrastructure that shipping operations becomes successful and profitable. In short, technology in the form of liner shipping software must be supplemented with good planning and flawless execution of strategies.

As of the present time, software companies have not yet come up with one-size-fits-all shipping solutions software, and there is reason to doubt there will ever be one due to the fact that business requirements vary from one shipping company to another. But, whatever the future holds with regard to this, shipping companies should be careful not to fall into the trap of over reliance on software solutions.

How To Improve Container Shipping Productivity?

The demand for container shipping is expected to increase well into the future, despite the increase in freight costs for the shippers and the high cost of bunker fuel for liner ship operators. As such, existing maritime shipping lines should expect the competition to provide shipping services to increase as well.

While the larger companies are expected to transport the bulk of all freight cargo across continents, the smaller maritime shipping companies still remain indispensable. These shipping lines are mostly responsible for transporting cargo between smaller islands, and across bodies of water that are too shallow or too narrow for vessels such as Maersk Line's Triple E class.

How can your company match with the big players of the industry?

The best way to increase your shipments is by improving your services. The best way to do this is by improving your productivity. Adapt business solutions such as container management software to improve the stowing and lashing of precious containers. Port disbursement software also helps secure documentation regarding cargo shipments no matter how large the traffic is at your ports. Investing in complete integrated shipping software is also beneficial because these usually come with a CRM software that allows better management of shipments and customers.

Staying ahead in business is always important, no matter what industry you are in. If you have a big name competition, then all the more reason for you to invest in advanced business solutions that will give you more leverage. There are plenty of shipping software companies who develop software for shipping lines that are easily customizable, you need only to look for the best and most suited for your business model.

Improve Maritime Shipping Services With Business Software Solutions

Managing a logistics company can be a real hassle especially when one has to consider so many factors including freight rates, prices, bunker fuel costs, loading and unloading ports and of course the processing of legal documents. Making a mistake during legal documentation can mean serious legal sanctions. But because the maritime shipping industry remains an integral part of the global economy and continues to grow steadily throughout the years, logistics and shipping companies bare with all the difficulties and continue striving to provide excellent service.

To help logistics providers simplify their shipping operations, they can obtain an integrated shipping software or an ERP (enterprise resource planning) system that integrates all the necessary operations for freight shipment. There are also CRM softwares developed by marine software companies that provides data efficiency and safety, secure and accurate financial processes, and optimized sales management. There are other maritime software solutions available that enable customization for more personalized business solutions. For NVOCCs (Non Vessel Operating Common Carrier), there are also NVOCC software available to help them streamline all their business processes.

Operating and managing a shipping company need not be included in the difficulties brought about by the maritime shipping industry. The latest improvements in technology can easily be utilized for efficient management and improved operations. Although bunker fuel costs and freight rates will remain to be the greatest concerns and environment preservation organizations will continue to closely monitor maritime trade, the management side of the equation can be fulfilled safely and swiftly with the use of these advanced technologies.

Shipping Software Solutions Can Help Improve Local Industries

Indonesia’s archipelagic nation is ideal for maritime shipping companies. However, the maritime shipping industry of the country is still relatively young. That is not to say that the government of Indonesia is not looking for ways to improve its local maritime shipping industry and boost the economy. The Director General of Sea Transportation recently had an interview with the Jakarta post that discussed the importance of improving shipping ports.

As pointed out by Director General Leon Muhamad from Indonesia’s Sea Transportation under the Ministry of Transportation, reducing logistics costs and improving the speed of loading and unloading processes at marine ports is one of the biggest concerns for the development of the local shipping industry. Under the National Port Management Master Plan, both local and government owned shipping ports will receive Rp 117 trillion from the government to help accelerate their development. The government has further allocated Rp 891 billion for PT Pelni, a state-run shipping company, to help modify its ferries to carry both passengers and freight containers.

To further develop the marine shipping industry of Indonesia, technologically-advanced business solutions are needed to facilitate the movement of freight goods and streamline all logistics processes. Shipping lines operated by both the government and private sectors can benefit from integrated shipping software developed by shipping software companies that promote best practices in shipment documentation and other operational processes. In particular, container management software and container tracking software will help solve the problem of how to improve speed and management during loading and unloading of freight containers. Aside from these, there are other software business solutions that can help the Indonesian government achieve their goal of improving their local marine shipping industry.

South Africa’s Need For Commercial Vessels

South Africa is the only member country of the international organization BRICS (which includes Brazil, Russia, India and China) that does not have its own commercial vessel, yet makes up the 3.5% of the total global maritime trade. The other countries each have their own merchant vessels: Brazil has a fleet of 172; Russia has 1,891; India has 534; and China’s fleet is composed of 2, 044 vessels. Furthermore, in 2011 only, 264 million tons of freight cargo were imported and exported by South Africa.

SAMSA (South Africa’s Maritime Safety Authority) CEO Tsietsi Mokhele pointed out that South Africa spends an estimated 45 billion rand on global shipping exports and imports, 98% of which are carried out by foreign shipping lines. This gaping lack of contribution in the industry of sea-borne commerce is what’s keeping South Africa from becoming a global naval influence, Mokhele said.

If South Africa is to commission its own commercial fleet, these shipping liners must be equipped with the latest improvements in maritime technology for South Africa to become a substantial player in the maritime shipping industry. An integrated shipping software that streamlines the operations of the shipping agency onboard the container vessel will make the shipping operations more productive, efficient, profitable and secure.    

Shipping software companies have long been providing shipping agencies with integrated shipping software that incorporates all the necessary functions needed by a shipping vessel. By utilizing these business solutions, South Africa is sure to become a significant country in the maritime shipping industry.

NVOCC Shipping Security

CaroTrans, the leading global NVOCC (non vessel operating common carrier) recently announced the expansion of its global network through their new LCL (less-than-container load) export service from Miami, Florida to Itajai, Brazil. The ocean freight consolidator’s newest shipping route option is now available to transport cargo coming to and from Brazil, which is quickly emerging as an important trade region for international containerized shipping. Aside from LCL, CaroTrans also provides FCL (full container load) services for its customers.

Transporting cargo through an NVOCC can raise uncertainties for exporters and importers. These operators are cargo shipment integrators and often do not own a transport vessel of their own. There are risks that include: unsafe cargo warehousing, tampering or falsification of shipping documents such as the bill of lading and non-discriminating NVOCCs booking vessel space from shipping liners whose container ships are unfit to sail. Shippers who need to transport their cargo through these agents have to make sure that the NVOCC and its transportation affiliates are insured, experienced and trustworthy.

There are software solutions available for NVOCCs that feature fully integrated shipping software solutions including NVOCC software and container tracking software, delivering unparalleled streamlining of operations, enhanced communication between shipping agency and shipping liner and complete security throughout cargo transit.

These software solutions are developed by shipping software companies who have vast experience in the global liner shipping industry. By utilizing the most advanced shipping software solutions currently available, NVOCCs and other shipping integrators can reassure exporters and importers that the integrity of all their cargo shipments will always be maintained.

Container Tracking Software: A Necessity With Increasing Pirate Activity

Container tracking can be a frustrating task for anyone in the import-export business and the shipping industry, yet this is an important aspect of any shipment logistics, especially for import and export companies. Ensuring the safety of all cargo is the responsibility of all shipping lines, and reliable container tracking software solutions help shipping lines achieve this task.

In recent years, the increase in reports of piracy attacks, particularly by Somali pirates, have lead shipping liner customers and merchant vessels to constantly fear for their expensive cargo shipments. Liner vessels traveling through the Gulf of Aden are considered prone to Somali pirate attacks, and local governments are finding it difficult to successfully find solutions for this problem.

Frequent maritime piracy has a huge impact on a shipping line's reputation. No broker would want to trust his precious cargo to a shipping liner who is constantly plagued by pirates. As a preventive solution for this problem, shipping lines must have a complete integrated shipping software which includes a container tracking software that would allow exporters and importers to effortlessly track and monitor the location and status of expensive freight goods. Not only does this helpful software let customers rest easy, but it can also help alert coastguards should any pirate activity become apparent. For example, if an importer is trying to track his cargo and no response is received, he can alert the coast guard patrolling the area to investigate the location where the shipping liner last checked in. If a maritime crime has occurred, the coastguards will be able to provide immediate support, reducing potential expenses and saving important cargo.