A.P. Moller – Maersk, CMA CGM, Hapag-Lloyd, MSC and Ocean Network Express have begun discussions to establish a container shipping association with the purpose of promoting digitalization, standardization and interoperability in the industry.
Information technology executives from the five shipping lines are exploring the creation of common IT standards that will be openly available and free of charge for all stakeholders of the wider container shipping industry.
“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, chief information officer 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.”
Even though there are already multiple organizations and associations within the shipping industry, 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.
“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 A.P. Moller – Maersk. “A joint set of technical standards will ensure interoperability and enable all parties to concentrate on value-adding differentiation as we move the container shipping industry towards further digitalization. Ultimately this will benefit all parties in our customers’ supply chains.”
The association has no intent of developing or operating any digital platform, but aims to ensure interoperability through standardization. The association will also not discuss any commercial or operational matters.
“CMA CGM is always looking for best practices and standards to support the innovation and digital strategy of the company,” said Rajesh Krishnamurthy, executive vice president of IT and transformations at CMA CGM. “Being a founding member will enable us to work together on setting the standards for digitization of the entire industry.”
All ocean carriers are invited to join the association once it is established.
“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 information technology at Hapag-Lloyd.
The association is scheduled to begin operating from early 2019, subject to regulatory requirements.
“Ocean Network Express sees a wave of innovation technology development in shipping and logistics industry over the recent years which can bring good opportunity to the whole industry for digital transformation,” said Noriaki Yamaga, managing director of corporate and innovation at Ocean Network Express. “But, at the same time, we're a little bit cautious about adopting new technology by individual company since there is no common standard in the market which may be ending up with re-integrating work among all stakeholders in the supply chain. With this mind, we feel it would be necessary to do some discussion and collaboration on the area of new technology and innovation to establish common IT standard and governance for the industry to streamline and digitize shipping process in a modern way. In the end, 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 a new ecosystem of digital supply chain.”
