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SHIPPING & LOGISTICS S4 maltatoday | SUNDAY • 9 SEPTEMBER 2018 IN an era of technological disrup- tions, 'grow or go' is the new norm for the Shipping and Logistics (S&L) industry. According to a Markets- andMarkets survey, the supply chain technology and analytics market will be worth USD 4.8 billion by 2019. Digital disruption underpinned by analytics, cloud computing, mobility and Artificial Intelligence (AI) is driv- ing change in the S&L industry. As the digital race picks up speed and C-suite executives mull over ways to gain 360-degree visibility into the lo- gistics lifecycle, here are the top three trends shaping the S&L industry. Leveraging new technologies AI is the logistics industry's ticket to a fully digitised, data-driven future. While AI-enabled self-driving trucks and automated ports are already a re- ality, the Internet of Things (IoT) can bring in additional value. Data from connected smart devices in the sup- ply chain network can be analysed by Machine-Learning (ML) algorithms for innumerable benefits – from pre- ventive maintenance and repair to im- proved efficiency and cost compres- sion. For example, Maersk Line, a leading global container shipping company, has partnered with Ericson to en- able Remote Container Management (RCM). Maersk's 300,000 IoT-enabled refrigerators transmit vital stats such as temperature, location and power supply in real time to a cloud server, where this information is analysed by ML algorithms. This has helped Mae- rsk ensure port safety, efficiency, op- erational savings, and improved cargo care for the fresh produce that it deliv- ers to 343 ports across 121 countries. Intercepting losses through Blockchain Blockchain technology has the po- tential to offer unprecedented levels of operational transparency and trace- ability to logistics companies. Cur- rently, cargo theft is a major concern for the S&L industry. In 2017 alone, the industry lost over USD 39 Million due to cargo theft. Blockchain-ena- bled robust and secure business net- works can prove to be gamechangers in curbing cargo theft by optimizing cross-border transactions and trading relationships at scale. For instance, customer identities on Blockchain ledgers cannot be tam- pered with at the time of delivery. Blockchain can also enable foolproof deliveries and returns by mapping the unique Blockchain registration num- bers of every vehicle against the deliv- ery job IDs. Logistics players such as UPS are betting on Blockchain as the future of logistics. The company recently joined Blockchain in Transport Alliance (Bi- TA), a global standards organization aimed at devising innovative ways and regulating the use of Blockchain in lo- gistics. Emergence of elastic logistics Elastic logistics is the ability of S&L providers to expand and shrink their capabilities across geographies in re- sponse to market and demand fluc- tuations, changing consumer prefer- ences, and socio-political changes. To be elastic, S&L companies will have to think outside the box and leverage the power of collaboration in innovative ways. Companies such as DHL and FedEx are already part- nering with local players and national postal services to address last-mile delivery issues. Elastic logistics is about extending this collaboration to sharing fleets, warehouses and networks to handle more distribution channels, priority deliveries and penetrate newer mar- kets. Elastic logistics can help com- panies in getting real-time 360-de- gree visibility, connecting siloed processes, improving resource utili- sation and compressing operational costs. Global logistics leader DB Schenker has recently forayed into the elastic logistics space by partnering with on- line freight exchange provider uShip to map truck drivers and shipments more efficiently. New entrants, emerging technolo- gies and unprecedented scenarios will continue to upend traditional busi- ness models in the S&L industry. 'Perfect order' deliveries are now be- coming the ultimate yardstick to meas- ure customer satisfaction. These are or- ders with the right mix of place, product, timing, package, quantity and documen- tation delivered to the right customer. In such a business environment, the future will belong to companies that can prove their digital fitness consistently. S&L companies should also be pre- pared for more disruptions ahead. The trick lies in anticipating which areas will be impacted and what ca- pabilities should be developed to ride the wave successfully. • Technologies such as artificial intelligence, the Internet of Things and Blockchain are changing the business landscape for the Shipping and Logistics (S&L) industry • Elastic logistics, the ability to expand and shrink capabilities in response to market f luctuations, will be the new way forward for S&L companies • 'Perfect order' deliveries and other disruptions will continue to push S&L companies to become more digitally fit Top trends in shipping and logistics