According to the latest research report, the global cargo industry is expected to attain superb growth with a CAGR of 3.8% between 2021 and 2026. This kind of shipping usually includes the transportation of goods via sea. The cargo is transported through vessels and container ships.
Just like other industries, the cargo shipping industry also suffered a setback in recent times due to the outbreak of coronavirus pandemic. Apart from this short-term hindrance, this industrial sector has its own set of challenges and trends that make a deeper impact on the overall performance of the industry.
In this post, we will delve deeper and look at them along with the ways that can bring substantial improvement.
1. Lack of Qualified Manpower
First and foremost, the shipping industry has been witnessing a downfall in terms of qualified manpower. Due to the challenging job nature and technical exposure, not many young people are willing to be a part of this industry. According to a leading shipyard company, people are not ready to take up the available opportunity prevailing in the sector due to their lack of dedication towards the same.
One promising way to tackle this challenge is to adopt a multi-project management approach along with sagacious resource allocation. This would allow shipbuilding companies to move the resources across different projects to achieve their project completion target. Furthermore, shipyards may adjust to the current scenario by improving facilities for training young shipyard workers..
2. Digital Transformation Bringing Newer Concepts in Ship Management
There is no doubt that most shipbuilding companies strive to boost their overall output. This is where rapid digital transformation plays a substantial role. Furthermore, it comes with a wide range of other benefits, such as heightened security, lesser human involvement, rationalized procedures, and a lot of others.
This digital transformation is affecting almost every industry and shipping is no exception. World-famous corporations are working hard to elevate it to a whole new level. This way, new technologies come up, urging the acquisition of new skills by workers.
Below are some of the latest digital technologies:
360° Cameras
This technology includes giving workers neckband cameras that are 5G-enabled and provide a real-time view of the area to the staff present in the control tower. This way, it helps in the initiation of swift and efficient responses in the case of an emergency.
Artificial Intelligence (AI)
The latest report revealed that the use of an AI-enabled ship operating system helped a ship agency in Indonesia to reduce its fuel costs by 10%. This was done by collecting and monitoring all relevant data about an engine, as well as making appropriate arrangements to curtail fuel consumption.
Automation
Process automation is no longer a foreign term as it is rapidly becoming an integral part of every industrial sector. It is also vital to automate resource allocation and planning procedures in addition to using multi-project management solutions. There are several applications available that have a variety of beneficial features that will accelerate shipbuilding work.
3. Environment Protection Policy
Environment Sustainability is a buzzword these days and it also applies to the shipping industry. For example, the 2020 Sulfur Regulation has defined additional requirements for the cargo shipping industry. It states that from now on, ships and vessels may not utilize gasoline containing more than 0.50 percent sulfur. Previously, the limit was 3.50 percent. There are three ways to keep the use of sulfur in control.
Use low sulfur fuel oil
Apply LNG-fueled vessels
Use scrubbers
The Conclusion
Alike other industries, the shipping industry has its own challenges which need to be managed by shipbuilding companies to stay competitive. Among all these things, one good option is to consult a leading ship broker or ship agency in Indonesia that can help shipping companies understand them deeply and manage them effectively.
If you need to know more about the shipbuilding challenges and trends, consult the PT USDA Seroja Jaya. For better information or to know more about our experts, visit our website today.