By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data science anayst
    Growing Demand for Data Science & Data Analyst Roles
    6 Min Read
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: The Mysterious Impact AI is Having on Shipping Logistics
Share
Notification Show More
Latest News
SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > Artificial Intelligence > The Mysterious Impact AI is Having on Shipping Logistics
Artificial Intelligence

The Mysterious Impact AI is Having on Shipping Logistics

Rehan Ijaz
Last updated: 2020/03/13 at 9:00 PM
Rehan Ijaz
5 Min Read
SHARE

Contents
Ensuring compliance with environmental regulationsFinding more efficient routesImproving SecurityArtificial Intelligence is Shaping the Future of the Shipping Industry

The global shipping industry has changed more in the past few years than the previous half of a decade. Artificial intelligence is one of the biggest factors that is spearheading the evolution of this timeless industry.

Mike Konstantinidis, The CEO of METIS Cybertechnology provided an especially insightful critique of the impact AI has had on the industry. Konstantinidis points out that the shipping industry was reluctant to invest in new communication technologies during the late 1990s and early 21st century.

Artificial intelligence has made it easier for these companies to seamlessly integrate new shipping logistics and communication technology into their business models. Konstantinidis and other executives in the shipping and logistics industries have highlighted a number of reasons artificial intelligence is transforming their profession.

More Read

SMEs Use AI-Driven Financial Software for Greater Efficiency

Key Strategies to Develop AI Software Cost-Effectively
AI is Driving Huge Changes in Omnichannel Marketing
Maximize Tax Deductions as a Business Owner with AI
Marketers Use AI to Take Advantage of 3D Rendering

Here are some of the reasons ABS Group has provided as to why it is so important in the years to come. Shipping executives should inform themselves on these benefits and incorporate AI into their models accordingly.

Ensuring compliance with environmental regulations

New environmental regulations have been rolled out over the past decade. IMO 2020 is one of the most impactful environmental regulations to hit the industry. This new policy was announced last December and some of the details are still being worked out. What is the significance of this law? The UN International Maritime Organization has kept sulfur content in fuel oil for marine vessels at 0.5%, which will begin in 2020.

Fortunately, artificial intelligence will likely aid them in meeting complaints targets for this new law and other environmental policies moving forward. AI will help them develop more environmentally efficient vessels, find new fuel oil sources with lower sulphuric content and minimize their travel distances to lower their carbon footprint to reduce the likelihood of running a fowl with regulators.

Finding more efficient routes

Shipping companies are under increased pressure to reduce costs. Companies like Shiply work by carpooling deliveries on the same routes which helps, but the cost of operating a large shipping vessel can be enormous. It is also heavily dependent on volatile factors outside their control, such as oil prices.

According to Magaya, the cost of operating many ships fell from $40,000 a day to $20,000 a day between 2015 and 2016. One of the biggest factors for the decline was lower international oil prices.

On the surface, this sounds encouraging, at least in the short-term. However, it highlights how vulnerable the industry is to fluctuations in crude oil prices. If prices rebound in the future, the industry may face a serious loss.

Artificial intelligence is helping shipping companies create contingency plans for future surges in oil prices. They can use the most sophisticated GPS-based artificial intelligence solutions to create the most fuel-efficient shipping routes. This is also very important for a chilled courier service, where expectations for quick delivery turnaround are high.

Improving Security

International tensions have become more heightened in recent years. Shipping companies are particularly vulnerable to these problems. They are exposed to any number of risks as they travel across international waters.

Fortunately, artificial intelligence is helping them respond to these problems. They can use it to identify the risks they face and find the most appropriate security precautions to stop them. They can also use new tools to assess geopolitical risks abroad, so they can prepare for them before outlining a logistics strategy.

Artificial Intelligence is Shaping the Future of the Shipping Industry

The global shipping industry is going through a series of changes. Advances in AI are helping them respond to these problems. They can use new algorithms to mitigate security risks, ensure better compliance with new regulations and improve the cost-effectiveness of their operations. It will be particularly important for shipping companies that operate internationally.

Rehan Ijaz May 16, 2018
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
By Rehan Ijaz
Follow:
Rehan is an entrepreneur, business graduate, content strategist and editor overseeing contributed content at BigdataShowcase. He is passionate about writing stuff for startups. His areas of interest include digital business strategy and strategic decision making.

Follow us on Facebook

Latest News

SMEs Use AI-Driven Financial Software for Greater Efficiency
Artificial Intelligence
data security in big data age
6 Reasons to Boost Data Security Plan in the Age of Big Data
Big Data
data science anayst
Growing Demand for Data Science & Data Analyst Roles
Data Science
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

Artificial Intelligence

SMEs Use AI-Driven Financial Software for Greater Efficiency

10 Min Read
ai software development
Artificial Intelligence

Key Strategies to Develop AI Software Cost-Effectively

10 Min Read
ai in omnichannel marketing
Artificial Intelligence

AI is Driving Huge Changes in Omnichannel Marketing

12 Min Read
ai for small business tax planning
Artificial Intelligence

Maximize Tax Deductions as a Business Owner with AI

9 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?