THE FUTURE OF GLOBAL

container shipping

In changing world!

©Abdulla Wanis 2018

Presentation agenda

Today’s Technologies & port business drivers

Current trends

Current problems of global shipping industry

Automated container terminals

Why full potential of automated terminals for operational

performance taking so long?

Pillars of automated container terminals

Future trends

Characteristics of smart port

Port authorities role in the new era

Characteristics of port industry in the future

21st Century Technologies

Current trends

Top 10 container ports as @1/1/2018

Annual growth of top 10 container ports2016-2017

M&A of port operators as @1/1/2018

Annual growth of top 5 container port operators 2015-2016

Alliances today

Alliances variation since 1992

Market share, demolition and order book for the top players

As @1/1/2018

Carriers competition in the last decade brought out the

surplus in market carrying capacities with gigantic new

vessels, coupled with weak market condition and poor re-

covering signs. This increases the desire for mergers and

acquisitions, and further promotes formation of alliances

to cool down the competition and to back up each other.

Current problems

of the global

shipping industry

1- Declining volume growth 2- Over-capacity 3- Customer needs changes 4- Talent retention

Detailing the three issues concluded that will move forward the

container port industry:

1- The future of the ports is challenging but bright since

innovation will have a greater role to play and will enable the

port to generate significant value for customers, shareholders

and employees

2- The regulator and port authority must strive to guide ports

through these turbulent times as well as facilitate them in this

process of change

3- Collaboration is critical on both a horizontal and

vertical level and nurturing an ecosystem where

innovation can truly thrive is now essential.

The question is:

How change is currently managed in your port and

develop specific strategies for transformational

innovations?

• Need to manage the risks of innovation in proactively and prepare workforce and organizations for the impact of digitalization and automation.

• Be bold

• set up a specific structure operating with protected

funds,

• Measure and incentivize with non-economic metrics.

The answer is :

Automated

container

terminals

“Automated container terminals are cleaner, safer, and quieter than conventional terminals, and they deliver containers much faster than fully manned terminals’’ Global automated container terminal market is expected to grow at a CAGR of 25% during the period 2017-2021

Why full potential of automated terminals for

operational performance taking so long?

In order to answer this question , we need to know what are the pillars of automated container terminals?

Robots, humans, and software

are pillars of

automated container terminals

Robots, humans, and software are pillars of

automated container terminals

Humans are good at:

• Perception-driven intuition

• Multidimensional assessment

• Creative and experience-based decision making

Robots are good at:

• Predictability

• Precision

• Repeatability

, and software is good at:

Abstract intelligence and problem solving, but software can only

act with a clear direction, and clean input data.

The current missing pieces at container terminals are

Data analysis and correlation

Deep learning and cognitive training

Within this scenario, the need for the “best” solution is a

fallacy

Missing pieces !

Hence, extra efforts are needed !

Future trends

Characteristics of smart port

Changes in container market dynamics will increase the

market concentration and the shipping lines bargaining

power, and will defiantly affect competition among ports.

Accordingly, one must ask for how long terminal operators,

who are not a part of or operated by shipping liners, will

survive with positive balance sheet, as the impact of

shipping concentration will affect them sooner or later?

IoT (internet of every thing) is the master key for global containerization in the future

Driverless trucks set to hit Singapore roads by mid 2018

Hybrid companies are the most common in the near future

LNG fuelled vessels