A Literature Review of

The Role of IT in Global Maritime Transport Logistics

By: M I Chaudry
Date: 02/11/2009
Foreword:
Transport sector makes the integral part of the foundation upon which
globalisation is based. An efficient maritime infrastructure adds value to
shipping transport service to add flexibility and convenience to worldwide trade.
Demand for maritime transport services is related to the increase or decrease in
the demand of finished or unfinished goods. The competitiveness of goods is
determined by the effectiveness of transport services in global logistics and
supply chain. Maritime service components like ships, flag of registry,
classification societies, insurance and seafarers’ services are all traded in a
global market. International transport has become a point of attention to
mainstream economists and various development theories and trade models are being
applied worldwide to identify the impact of globalisation. Growth in trade volume
and maritime transport cost, are mutually related. Production and marketing act as
value creation functions and logistics of ship transport act as support function
for a firm when examined as a value chain. Unnecessary barriers among different
trading nations have been overcome due to the continuous and ongoing efforts of
World Trade Organisation. This has resulted in the evolution of global supply
chain across the oceans. The global demand for maritime transport services and of
its components has also resulted in the multifold but contradictory trends, (Kumar
S., Hoffman J. 2002).
Appraisal:
There have been major advances in electronics and transport technology but until
recently the impact of this advancement has not fully utilised by Maritime world.
Operational costs are marginally reduced by the introduction of post panamax
container ships and gantries but the process in return has added the costs of
transhipment. E-commerce firms are lacking in achieving the results of economy and
enhanced market response is missing. The reasons behind this are the omissions and
errors, which were made while introducing the E-technology into logistics. An
urgent revaluation is required on urgent bases to gain the desired results of
improved logistics performance and reduced cost due to the implementation of
correct technological measures. Unnecessary steps in transaction management need
to be eliminated; this does not include the important steps of verification,
authorization and control, involved in monetary transactions. All the operational
intermediaries, intermediate transactions, intermodal delays, transhipment and
inventory cost and delays have to be overcome for a seamlessly integrated,
virtually paperless, and real time operations management, (Frankel E. 2000).
Use of new communication and Information technology provides real time information
flow and control but yet if all the paper based traditional operational procedures
are performed still on the bases and methodology of old economics than the desired
output and result is not achieved. New approach has to be implemented based on new
research and current economic practices. This equally stands true for both e-
commerce and e-logistics. A remarkable achievement has been made in the road, rail
and sea transport efficiency. Similarly, transaction-only costs being incurred
during inventory, warehouse, and other intermodal transfers can be reduced by
swift electronic data exchanges instead. Perfectly coordinated, consolidated and
an efficient business-to-business transaction can be achieved by reducing the
middle-man factor and by excluding the repetition of effort.
Inter-company, intra-company systems and company-public authority are the various
levels of shipping trade where exchange of data takes place and these are the
points where core developments in IT are to be focussed.
The availability of ultra-fast internet, and ability of remote and wireless access
to World Wide Web, and office based information resources will enable the access,
process and transfer of data in the most proficient way and the majority cost of
paper based documentation will be saved. Sourcing and procurement of products on
the platform of E-logistics will result in a low cost supply chain. The provision
of common e-logistic platform has made possible the standardisation of certain
logistic service, logistic measures, unit cost, and major documents involved.
Electronic based transport management and control system have been brought into
use by regulatory and custom bodies. Singapore’s PORTNET, CITOS and GEMS are few
of the examples of E-logistics, (Ojala L. Menachof D. 2002).
Future is looking towards the trend of ship and port capacities being auctioned
online and vessels being controlled and operated by a skeleton of professionals
dealing with all aspects of vessels’ commercial and operational needs. Once all
hard copy documents used in maritime transportation will go online and will be
available via wireless mode, it will serve the purpose and save the costs
remarkably. Integrated development towards a standardised and coordinated web-
enabled logistic system is the future of the transport industry. Ports and
shipping companies are the major players in international trade logistics and the
introduction of E-commerce is helping to bring the customers and suppliers of
transport service at the same platform. Some of the practical examples of e-
logistics service providers are: LevelSeas.com for trans-ocean bulk transport;
Tradiant.com for containerized freight; PrimeSupplier.Ltd for ship supplies;
Freightdesk.com for logistics solutions; OptimumLogistics.com for bulk commodity
logistics and Asiaship.com freight logistic management.
Another prominent feature of trade management within the online environment is
that security of a transaction is enhanced significantly. The most sophisticated
and invulnerable means like encryption of data are used to make a trade
transaction impregnable. Inter-company, intra-company systems and company-public
authority are the various levels of shipping trade where exchange of data takes
place and these are the points where core developments in IT are to be focussed.

Conclusion:
The above review indicates that now is only the start of an information revolution
and if we say that it is the beginning of start, than it will not be a wrong
statement. Development and implementation of IT in maritime transport model makes
it conveniently accessible around the globe. It is the need of the hour to
increase the pace of this development to achieve maximum benefits of e-logistics.
References:
Boubekri N. (2001): Technology Enablers for Supply Chain Management; Integrated
Manufacturing Systems, 12(6), pp.394-399.
Frankel E. (2000): E-Logistics Solutions: A Key to Major Cost Reduction in Getting
the Product to the Buyer; 2nd Global Automotive Trades and Logistics Conference,
Bremen, Germany, September.
Kumar S. Hoffman J. (2002): Globalisation - The Maritime Nexus; The Handbook of
Maritime Economics and Business.
Ojala L. Menachof D. (2002): IT in Logistics and Maritime Business; The Handbook
of Maritime Economics and Business.
Packington R. (2001): The Paperless Supply Chain? Perhaps not yet; e.logistics,
1(11), May, p.16.
UNCTAD (2001): Review of Maritime Transport, by United Nations, Geneva.
Van D. Kees J. (2002): Traking and Tracing - A Structure for Development and
Contemporary Practices; Logistics Information Management, 15(1), pp.24-33.
Wallis R. (2002): Elements in Value Chain Design; Manufacturing and Logistics IT,
April, p.35.