Malcolm Mclean was an American truck driver who invented container shipping and revolutionized the logistics industry. (Source: Will Box)

Now, at the onset of the Fourth Industrial Revolution, container shipping is undergoing a smart makeover to become more efficient, environmentally friendly and cost-effective. Major shipping companies and ports around the world are adopting smart technologies such as Blockchain, Big Data and IoT to automate operations. For example, the world’s largest container shipping company, Maersk is operating on IBM’s  blockchain-like system to cut out additional paperwork and conduct efficient, transparent operations. Major ports now have smart sensors and artificial intelligence (AI) to collect data about the environment and respond to changes in real-time. Finally, to keep up with all the new technology, new infrastructure is outfitting the smart ports of tomorrow.

So, here’s a glimpse into some of the most advanced ports around the world and what the future of container shipping holds.

SEE ALSO: The Changing Waves of the Shipping Industry

Port of Rotterdam

The Port of Rotterdam is Europe’s largest port with more than 461 million tons of cargo and 140,000 vessels passing through it every year. In January 2018, the Port of Rotterdam Authority and IBM announced they will collaborate on a digital transformation project to turn the Port of Rotterdam into a smart, connected port of the future. Already, there are sensors being applied across the span of 42 kilometers of the port both on land and in the sea to collect data about the port’s surroundings.

The Port of Rotterdam is the largest port in Europe and on route to becoming a smart, connected port. (Source: Port of Rotterdam)

Most importantly, the new port will have a central dashboard which will act as the brain of the entire port. The sensors will collect data and send it to the central dashboard where it will be processed in real-time via IBM’s IoT technology. Compared to the traditional radio communications among operators, the new system will drastically cut down the time it takes to communicate and manage traffic as well as prevent or respond to accidents. Operators will be able to oversee all operations of the port at once, and the new, efficient process is projected to save shipping companies up to an hour in berthing time, which translates to a cost savings of about USD 80,000 per hour.

Port of San Diego

The entire city of San Diego has been working to become a smart city and a leader in the movement towards net-zero energy consumption. The city’s port is no different. In 2013, it adopted the Climate Action Plan (CAP) under which the port has pledged to reduce greenhouse gas emissions by 10 percent by 2020 and 25 percent by 2035.

The Port of San Diego uses smart technology to reduce its carbon footprint. (Source: Cleantech San Diego)

As such, the city worked with various software companies led by Cleantech San Diego to develop a smart building project. The project’s smart technology uses sensors, Big Data and IoT to monitor energy levels across the city and provides real-time data upon which places like the city’s port can operate. Essentially, the data allows port operators to identify patterns in energy consumption as well as abnormalities to respond to in real time.

This year, the Port of San Diego and the state of California will undergo a USD 24 million modernization project with the goal of implementing zero-emission freight equipment over the next 20 years, and further incorporate smart technologies to reduce pollution.

SEE ALSO: Clear Skies Ahead: Clean Fuel for Green Shipping

Port of Singapore

Singapore is the trade hub of Asia and home to one of the busiest ports in the world. Every year, 130,000 cargo ships pass through its waters, but the number looks to increase with the growth of the e-commerce industry.

The Port of Singapore is en route to becoming one of the smartest ports in the world. (Source: Singapore Ministry of Transport)

Starting last September, the Maritime and Port Authority of Singapore (MPA) and IBM jointly implemented Project SAFER (sense-making analytics for maritime event recognition) to the port of Singapore. SAFER consists of new technologies to automate port operations, manage traffic and optimize the use of the port’s resources. With the new automation technology, the port can now enforce regulations automatically and monitor all vessel movements within the port at once in real time. Not only that, SAFER makes maritime operations much safer for operators and employees on the docks with the help of AI sensors for accident prevention. For continued development, the Maritime and Port Authority of Singapore held the Smart Port Challenge 2017 to foster startups in developing next-generation technology for enhanced and sustainable maritime operations.

As the ports mentioned above show, the global cargo shipping industry is headed towards vast change. New technologies such as blockchain, IoT and AI will greatly enhance transportation and handling efficiency and lead to greener practices. Traditional steel containers, on the other hand, will continue to be used in immense volumes for its 100 percent recyclability, lightweight and high-strength properties.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

Since last February, CEO Kwon has visited Siemens, GE and other businesses in Silicon Valley to explore new technologies and expand POSCO Group’s smartization plan. At CES 2018, CEO Kwon saw first-hand the latest smart technologies and plans to implement them to all of POSCO’s core businesses including steel, construction, IT and energy. He also met officials from leading smart companies such as GE and DPR Construction, and examined possibilities for cooperation over commercializing POSCO’s smart solutions.

POSCO Kwon met Heilmann Matthias, President and CEO of Digital Solutions at Baker Hughes General Electric (BHGE). Matthias oversees the digital solution business of GE Group, and the two discussed the development of PosFrame, POSCO’s proprietary smart platform, its compatibility with Predix, GE’s smart platform, as well as the possibility for joint commercialization.

In particular, POSCO ICT is planning to sign an MOU with DPR Construction, the world leader in Smart Construction, to collaborate on smart projects and find opportunities to apply new ICT technologies to construction. Through this MOU, the two companies will cooperate on projects such as constructing and operating highly-efficient, low-cost data centers and smart factories controlled by PosFrame.

CEO Kwon also visited the automobiles, home appliances, smart city and smart home exhibition booths. He examined the latest tech trends of IT utilization in steel-consuming industries to develop compatible materials and steel solutions.

He also made sure to explore electric vehicle (EV) batteries and new IT technologies surrounding EVs, as lithium materials are the new growth engine of the company. CEO Kwon also evaluated the possibility of securing new markets for the group’s construction business at home and abroad.

POSCO Group plans to continue searching for new, innovative solutions to apply to its smartization efforts and actively develop domestic and overseas data centers and smart factory markets.

Cover photo courtesy of BGR.