The Financial Perks of Purchasing Shipping Software Solutions

As global trade routes profess high growth rates for the coming year, shipping managers are looking forward to opportunities to increase their revenue.  In spite of this positive news, players in the maritime logistics sector are still prioritizing streamlined carrier operations. This comes as port congestion continues to be a pressing problem. As if it would not get any worse, bunker fuel prices are still experiencing an upward trend.

These conditions in mind, container shipping companies are now demanding for effective shipping management software to work around these issues and increase profit margins. Such systems can organize complex data in a more effective way than when handled manually.  

Shipping software solutions are particularly suited for the intricate task of overseeing logistics operations that are usually a pain in the neck for many shipping managers. Small shipping companies seem better off than their large counterparts that manage large vessels. In such cases, operators with big fleets to manage can ease their management activities and avoid errors by digitizing voyage calculation and bunker management. At present, there is a wide variety of shipping solutions that will satisfy a variety of needs. Taking into account these issues, shipping software companies can provide operators numerous options to realize container shipping efficiency.  

These solutions are available in the form of integrated packages. As one component, container management software is essential for maintaining reliability. It allows for a better experience in organizing containers of varying sizes. The software also allows managers to make sure that each container is accounted for, thereby increasing container visibility and minimizing lost and damaged cargo. On the other hand, container tracking software can effectively pinpoint the current location of cargo in real-time, thereby maintaining transparency and reliability.

Voyage calculation systems can also be considered with the package for better supply chain efficiency as port congestion remain a logistical nightmare. Voyage calculation software is a viable option to remedy such scenarios through precise vessel speed adjustment. Operators can increase and decrease speed depending on several factors to avoid port congestion and additional costs.

As market prices of fuel continue to rise, it is important to maximize fuel intakes. For this Bunker management software is needed to control bunker consumption and reduce unnecessary fuel expenses. The system gives accurate calculations on the actual fuel volume needed for a particular voyage. Coupled with accurate voyage calculations, efficient fuel management can guarantee high bunker savings.

In addition, problems over managing repair invoices for damaged containers can be sorted out through effective container repair software. The system works by archiving your repair orders effectively so as to avoid duplications. This ensures exact payment amounts and faster processing of equipment repairs.

The need to automate management processes in the shipping sector is not really a one-time trend within the industry; it is a necessity. Especially as fuel prices remain high and port congestion continues to affect supply chain efficiency, it is imperative that operators invest in effective shipping management software to streamline important tasks, achieve greater profitability and become more competitive as global trade improves. 

Are You Making Wise Investment with Shipping Software?

When shipping and logistics managers invest thousands of dollars in integrated shipping software solutions to streamline their supply chain, they do it in a presumption that in due course returns from such investment will make back upfront costs of software, hardware, installation, and necessary training for all departments involved. Indeed in favorable business conditions, marine software solutions have been tested and proven to simplify complex supply chain processes, enable revenue growth, improve customer service, and slash costs of operation.

But just like all business decisions, there are risks involved in software implementation as well as in choosing between bespoke and packaged options. Ideally, functional shipping solutions software, whether bespoke or packaged, should be able to deliver its supposed business value within its expected lifespan – before it becomes obsolete. However, there is no guarantee that this is going to happen. This is because there are many factors that are simply beyond your control such as the following:

1. IT and software products age very quickly.

2. Customer preferences change.

3. Business models evolve due to fast changing market landscapes.

With these factors at play, you cannot expect that processes involved in your supply chain management will be predictable and remain the same in, say, 10 years. At some time, you will need to modify or upgrade your system to make it work with current IT platforms. And, with the current pace of IT evolution, change can happen in a shorter period of time than you might expect.

So how can you ensure that your initial investment on shipping line software pay out within your expected payout period?

Minimize upfront investment and reduce time-to-value by choosing packaged shipping software solutions. Aside from the fact that packaged software is much cheaper than its bespoke counterpart, it is also easier to implement and requires significantly less technical training even for new users. Additionally, you don’t need to hire in-house programmers to maintain and upgrade your system. This results in lower operational cost and longer software lifespan, giving you more time to make back your initial investment.

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.

Safer Voyage Calculation For Shipping In The Alaskan Region

Traversing the Alaskan waters is without a doubt extremely dangerous, particularly because of the unpredictable nature of the icebergs. Another important thing to note is that the maps used by liner ships to navigate the area was charted in the 19th century.

Despite the dangers posed by the conditions in the Alaskan Arctic, shipping vessel traffic has significantly increased due to the decrease in the level of summer sea ice around the Kotzebue Sound. To help shipping vessels safely and swiftly navigate the region, the National Oceanic And Atmospheric Administration (NOAA) has sent the Fairweather - a hydrographic survey ship - to chart the area around the Kotzebue Sound. This new chart was released to the public on the 11th of May and depicts an ocean depth scale of 1:50,000, with a more detailed 1:25,000 for the Kotzebue Harbor.

With this new chart of the Kotzebue area, shipping lines can now confidently chart trade routes for their shipping vessels while ensuring their safety. These new charts should be included during voyage calculation to plot the fastest, safest and most profitable trade routes for shipping vessels.

A shipping agency can purchase marine software solutions that include advanced voyage estimation software to automate this process. This shipping agency software is available from marine software companies. By utilizing the latest advancements in technology for optimizing shipping operations such as plotting a trade route, shipping lines can ensure the shipper of the safe and prompt arrival of their cargo and the container vessel crew of their safety throughout the voyage.

IMO: Pushing For Environment Friendly Maritime Shipping

The IMO (International Maritime Organization) continues to champion the cause of environmentalist organizations and aims for an environment-friendly maritime shipping industry. To this end, the IMO has implemented policies that require shipping companies to upgrade their fleets and install advanced software solutions to minimize harmful emissions.

The IMO has further demanded ship repair yards to likewise make efforts to reduce harmful emissions while providing low cost quality repairs for shipping lines. One family owned shipyard, the Damen Shipyards Group founded in the Netherlands, expressed excitement for the challenge presented by the IMO. Jos Goris, Damen Shiprepair Götaverken’s Managing Director, has even pointed out that lowering repair costs is in fact in line with Damen Shiprepair Götaverken’s philosophies.

Another demand posed by the IMO is for the reduction of SOx (sulphur oxide) emissions by liner ships. With regard to SOx and other harmful ship emissions, the IMO has noted that reducing pollution produced by ships can be achieved by adequately addressing all contributory factors that include human, technical and operational issues. Shipping lines would benefit greatly from various marine software solutions developed by marine software companies that will accurately measure a ship's adherence to internationally recognized emission standards.

Shipping Line Software suites are currently available that help crew members to ensure adherence to various IMO regulated policies and standards. On the operational aspect, container management software can help monitor container contents so that hazardous materials such as oil are properly stowed since improperly stowed cargo is one of the contributing factors of major oil spills.

Accessible Climate Information Enters The Cloud

At Microsoft Research’s annual TechFest, researchers have introduced a tool that would allow retrieval of relevant climate information from the hundreds of data collected by various weather stations throughout the globe. The tool could prove to be invaluable to cruise liners and maritime shipping companies.

Named FetchClimate, this analytical tool is already available and is conveniently cloud-based, which means any necessary weather information can be easily retrieved using an internet-enabled device. Aside from enabling shipping crew to check the climate during voyage, this can also be used by importers and exporters who are concerned about the integrity of their cargo, particularly when the shipping liner in question is delayed.

In almost all aspects, FetchClimate functions similarly to Google’s search engine. Upon inquiry, FetchClimate will return climate information filtered according to geographical region, grid resolution (whether global, continental, or measured in kilometers), range of years, days within the year, and/or hours of the day. The tool also provides the estimated accuracy of the returned results when information on  the same environment varies on multiple sources. The url of the search result can be easily shared so that others can retrieve identical information.

Not only is this tool a great help for voyaging ships, but it can also be used for maritime insurance disputes. When the weather during a particular maritime incident is in question, the analytical tool can be relied upon to return the most accurate climate information pertaining to the area where the incident took place, without maritime insurance agents needing to wade into hundreds of unrelated weather information.

This analytical tool would prove beneficial if made available to shipping lines in addition to other marine software solutions already available from marine software companies, and can also aid during voyage calculation to provide the accurate duration of a voyage.

Fighting Modern Piracy With 21st Century Technology

The pleas of shipping liners and cruise companies to remedy the most prominent maritime crime in the high seas - pirate activity - have not landed on deaf ears. The US Naval fleet announced that they will begin testing a 3D sensor system to accurately identify pirate vessels off the California coast by the summer of 2012.

The sensor system named MMSS (Multi-Mode Sensor Seeker) will be placed on a robotic UAV helicopter called Fire Scout that will be controlled by navy personnel aboard naval fleet vessels. Using mid-wave infrared sensors, high-definition cameras and the addition of a laser-radar (LADAR), the Fire Scout helicopters will provide marine military personnel with 3D images of small shipping vessels in high resolution. An automatic target recognition algorithm will make use of the 3D images taken by the LADAR and cross-reference ship dimensions with those in the Navy’s database to identify suspected marine vessels.

Whether the test will be successful or not, this effort may not be enough to permanently end pirate activity and improve maritime trade and travel safety. The naval fleet is not as large as it used to be centuries ago, and remain vastly outnumbered by pirate ships. Even with effective identification software and equipment, naval ships may not reach victimized marine vessels in time.

The help of marine software companies is needed to develop new technologies to effectively combat maritime crime in the open seas. Due to the limited number of law enforcement ships available at any given time, developing new marine software solutions - perhaps one with a wider radar range that will instantly alert both naval fleet ships and the crew of shipping liners to the presence of hostile or unknown marine vessels - will help naval fleet ships reach shipping liners before an attack even occurs.

Bill of Lading Fraud In The Maritime Industry

The maritime industry is not immune to criminal activities. In fact, crimes on the high seas are prevalent yet governments are finding it hard to provide lasting solutions. Piracy alone is costing the international economy between $7 to $12 billion annually. But piracy is not the only problem plaguing the marine economic sector.

International Maritime Bureau (IMB), the international trading and shipping industry crime prevention and combating agency under the ICC Commercial Crime Services, has recently issued a warning for fraudulent Nigerian oil product shipments. The documents of said illegal shipments may seem authentic, particularly the bill of lading, but on closer scrutiny would reveal significant troubling discrepancies. This type of maritime fraud usually adhere to most of the details stated in the bill of lading which was lawfully issued including: nature and quantity of shipment, shipping vessel and loading and discharge ports. However, the carriers and dates of shipment are different from those stated in the bill.

This issue addresses the importance of being extremely careful and meticulous even when transacting with liner shipping companies who have established trading records, not only in purchasing oil products from other countries, but with any shipment affair.

Sometimes, even if buyers and carriers are extremely meticulous, paper trail documentation can still be counterfeited. One of the best solutions to remedy this problem is by implementing advanced marine software solutions that would guarantee secure business transactions. Liner agencies processing documents through a liner shipping software will provide buyers with secure electronic documentation and reports. This will effectively minimize maritime fraud in the shipping businesses.