Posted: November 16th, 2023

Assessing Disruptive Technologies for Modernizing Short-Sea Shipping Logistics in Northern Europe

Assessing Disruptive Technologies for Modernizing Short-Sea Shipping Logistics in Northern Europe

Short-sea shipping (SSS) is a mode of transportation that involves the movement of goods and passengers by sea over relatively short distances, usually within a region or a continent. SSS plays a vital role in the European Union's (EU) transport system, as it accounts for about 40% of the total intra-EU freight transport and 60% of the total maritime transport (European Commission, 2020). SSS offers several advantages over other modes of transport, such as lower environmental impact, higher energy efficiency, lower congestion, and lower infrastructure costs. However, SSS also faces several challenges that hinder its competitiveness and sustainability, such as outdated technology, regulatory barriers, lack of interoperability, and low customer awareness.

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In order to overcome these challenges and enhance the performance and attractiveness of SSS, disruptive technologies can be leveraged to modernize the SSS logistics chain. Disruptive technologies are those that create new markets or transform existing ones by offering superior value propositions or lower costs than incumbent solutions (Christensen et al., 2015). Some examples of disruptive technologies that have the potential to impact SSS are:

- Blockchain: Blockchain is a distributed ledger technology that enables secure and transparent transactions among multiple parties without intermediaries. Blockchain can improve the efficiency and reliability of SSS logistics by facilitating data sharing, tracking, and verification along the supply chain, reducing administrative costs and delays, enhancing trust and security, and enabling smart contracts and automated payments (Kshetri et al., 2020).

- Internet of Things (IoT): IoT is a network of physical objects embedded with sensors, software, and connectivity that enable data collection and exchange. IoT can enhance the visibility and control of SSS operations by enabling real-time monitoring, optimization, and coordination of vessels, ports, terminals, cargo, and equipment, improving safety, quality, and productivity, and enabling predictive maintenance and remote management (Mourtzis et al., 2019).

- Artificial Intelligence (AI): AI is a branch of computer science that aims to create machines or systems that can perform tasks that normally require human intelligence, such as learning, reasoning, and decision making. AI can improve the intelligence and autonomy of SSS systems by enabling data analysis, forecasting, planning, scheduling, routing, and optimization of resources, processes, and services, enhancing performance, flexibility, and resilience, and enabling adaptive learning and self-improvement (Koumpis et al., 2020).

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These disruptive technologies can create significant value for SSS stakeholders by improving the efficiency, reliability, quality, safety, sustainability, and competitiveness of SSS logistics. However, they also pose several challenges and risks that need to be addressed in order to ensure their successful adoption and implementation. Some of these challenges and risks are:

- Technological: The development and integration of disruptive technologies require high levels of technical expertise, innovation capacity, interoperability standards, cybersecurity measures,
and regulatory compliance.

- Economic: The adoption and implementation of disruptive technologies involve high initial costs,
uncertain returns on investment,
market competition,
and potential disruption of existing business models
and value chains.

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- Social: The adoption and implementation of disruptive technologies affect the skills,
jobs,
and roles
of human workers,
as well as the expectations,
preferences,
and behaviors
of customers
and society.

Therefore,
a comprehensive assessment
of the opportunities
and challenges
of disruptive technologies
for modernizing SSS logistics
in Northern Europe
is needed
to identify the best practices,
strategies,
and policies
to foster their development
and deployment
in a sustainable
and beneficial way.

References:

Christensen,
C. M.,
Raynor,
M. E.,
& McDonald,
R. (2015).
What is disruptive innovation?
Harvard Business Review,
93(12),
44-53.

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European Commission. (2020).
Short sea shipping.
Retrieved from https://ec.europa.eu/transport/modes/maritime/short_sea_shipping_en

Koumpis,
A.,
Papadopoulos,
G.,
& Koumpis,
S. (2020).
Artificial intelligence for maritime applications.
In A. Weintrit & T. Neumann (Eds.),
Transport systems telematics.
TST 2020.
Communications in computer
and information science
(Vol. 1286,
pp. 3-14).
Springer.

Kshetri,
N.,
Voas,
J.,
& Laplante,
P. (2020).
Blockchain in maritime transportation:
Potentials
and challenges.
Computer,
53(2),
18-26.

Mourtzis,
D.,
Vlachou,
E.,
Milas,
N.,
& Xanthopoulos,
A. (2019).
A cloud-based approach for maintenance
of machine tools
and equipment based on shop-floor monitoring.
Procedia CIRP,
81,
653-658.

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