Technological innovations in shipping and transport have revolutionized international trading. The supply chain has evolved and gained greater operational efficiency, productivity, and reliability. Logistics and transportation companies have integrated IoT, blockchain, artificial intelligence, digital twins, cloud computing, and EDI to streamline supply chain operations. These technologies help offer supply chain visibility, foster global connectivity, improve safety, and promote environmental sustainability. Let us learn more about various technological innovations in shipping and transport.

Role of shipping and transport in the supply chain

The global supply chain works to fulfill the demands of consumers from across borders. It involves a comprehensive and proactive network between manufacturers, suppliers, distributors, and logistics service providers. These stakeholders contribute effectively to procuring goods, packing, and transporting them to the designated importer. The process of procuring, managing, packing, storing, documenting, and transporting the goods is a part of shipping. Both shipping and transportation play a vital role in the seamless functioning of the supply chain. 

The global supply chain is an agile network of organizations, people, activities, information, and resources required to facilitate the easy movement of products or services from the manufacturer to the supplier, from the supplier to the distributor, and from the distributor to the customer. The movement of goods nationally and internationally occurs through various modes of transportation such as road, rail, sea, and air. Being the primary processes in the supply chain, optimization and effective management of shipping and transport are required to ensure the efficiency of the supply chain. The role of shipping and transportation in the supply chain includes-

1. Shipping helps link the various shipping parties across the globe, and transportation helps move goods across the supply chain to reach the manufacturers, suppliers, distributors, or consumers.
2. Practical shipping and transportation help minimize risks of supply chain disruptions caused by delays in the timely delivery of goods.
3. Inventory management and warehousing are crucial in storing goods ready to be transported as soon as an influx of orders comes in. Optimizing inventory management is essential to minimize the chances of a shortage or surplus of goods in the warehouse.
4. Containerization of goods is a part of shipping that affects transportation. Goods are packed into containers following the ISO guidelines to avoid further delays at customs clearances.

Technological advancements in the supply chain

The supply chain operations were initially done with the help of a vast workforce. Most activities were handled manually with the constant support of different machines, equipment, and vehicles. With time, stakeholders in the supply chain faced multiple challenges in shipping, such as

• Miscommunication and complexities exist in cooperating effectively globally with multiple stakeholders, such as importers, exporters, shipping companies, and logistics service providers.
• Container loading, unloading, and stowage onto the required mode of transport consume vast amounts of time.
• The impact of shipping and transportation on the environment was constantly escalating, causing increasing global warming.
• Risk of human life and shipments during cargo handling that could lead to fatal injuries and cargo damage.
• Navigational problems, proper route management, avoiding traffic, and closed routes were potential issues that led to higher transportation costs due to fuel usage, excess fuel use, and shipment delays.

Supply chain management introduced technological innovations in shipping and transportation to overcome these challenges. Most shipping and transport activities have become reliant on multiple technologies, and manual interference has been reduced significantly. Integration of technology in the supply chain activities has led the shipping and transport industries to enhance their operational efficiency, reduce expenditure, become more environmentally sustainable, and often provide reliable services to clients.

Benefits of technology in shipping and transportation 

The introduction of technological innovations to shipping and transportation has revolutionized the supply chain, leading to greater productivity, minimized risks, and better management. A few advantages of technology in shipping and transportation are-

1. Builds global connectivity – Technology has facilitated long-distance communication between stakeholders, leading to honest time information sharing. Shipping parties from across the globe can effectively cooperate without any language barriers, thereby increasing the global network and boosting international trade. For example, EDI helps in shipping and cross-border communication.
2. Controlling environmental impact – Intermodal transportation of goods across borders through various means of transport is one of the primary reasons for carbon emissions in shipping. Technological innovations in shipping are built to align with the sustainability goals in the supply chain and overcome environmental hazards. For example, using alternative fuels and GPS to find better routes helps reduce fuel usage that can cause shipping emissions.
3. Increases supply chain visibility – Technology helps track the movement and status of assets in the supply chain with real-time data sharing. Due to the added transparency in the supply chain, stakeholders involved in the shipping activity can track their shipments and make data-driven decisions. For example, IoT in shipping helps track container movement and asset status in the supply chain.
4. Cost-effectiveness – Technological innovations have led to proper risk mitigation, optimization, and streamlining of the shipping and transportation processes. This has increased productivity and, therefore, cost reduction. Automation in shipping has minimized labor costs, contributing to an even more cost-effective supply chain. For example, GPS helps optimize shipping routes, leading to faster turnaround and shorter delivery routes. 
5. Improved safety – Human errors are one of the leading causes of fatalities and injuries at operation centers. Switching to technology, accurate data-driven decisions, and transportation automation can help minimize human interference in shipping activities. For example, Automated ships, trucks, and vehicles reduce or nullify the presence of workers onboard, leading to a lesser risk of life during transportation.

What are the technological innovations in shipping?

1. Internet of Things – IoT in shipping uses IoT devices and sensors attached to assets such as shipping containers. It helps shipping parties gather and transmit real-time data. IoT is crucial in enhancing supply chain visibility, as shippers and consignees can track the movement of goods. Shipping companies, manufacturers, and suppliers can track and monitor inventory levels, equipment, and vehicles. Real-time information sharing enables proactive decision-making.
2. Blockchain technology – Shipping transactions between stakeholders is a susceptible process. Blockchain technology is a digital ledger that offers a more secure and transparent platform for legal transactions. Stakeholders can record and verify transactions across the supply chain network. Blockchain helps record the lifecycle of assets in the supply chain and ensures that the transaction records are tamper-resistant.
3. Digital twin technology – An amalgamation of artificial intelligence (AI) and machine learning (ML), digital twin technology helps form a virtual replica of real-world objects. It enables manufacturers, suppliers, and businesses to test the performance, success rate, and inefficiencies of various models, ideas, and strategies. Moreover, digital Twin helps make cost-effective investments and has contingency plans for strategy and ideas already implemented in shipping and transportation.
4. Artificial intelligence – AI in shipping helps in performing preventive and predictive maintenance. It analyzes historical data to evaluate the workings of machines, equipment, and vehicles and to identify maintenance and repair needs. This way, shipping and transportation companies can avoid uncertain breakdowns during the supply chain processes.
5. Drone-based inspection – Shipping container inspection is one of the crucial aspects of shipping and transportation. Inspecting every nook and corner of the stacked containers is time-consuming and complex when done manually. Drones are crewless aerial vehicles that help navigate and give an aerial view of the containers with the help of cameras and sensors attached to them. 
6. Cloud computing – Business partners and stakeholders use cloud-based computing in logistics as it acts as a scalable and flexible infrastructure that can store and access data from anywhere if you have authorized access. Real-time communication and data sharing are possible in shipping and transportation.
7. EDI – The electronic data interchange boosts international shipping and transportation by promoting paperless documentation such as invoices, bills of lading, and orders. It is also essential for trading partners with language barriers as a standard mode of communication to carry out documentation.

These multiple technological innovations in shipping and transportation help streamline the supply chain processes.

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