Mobile computing in ports set to accelerate with positive global outlook

Introducing innovations like mobile apps to port operations is one way to achieve productivity gains, improve operational decision-making and maximize revenue opportunities.

Optimism is rising across ports around the globe, on the back of growth in trade and increasing freight rates. For ports it is time to look at ways to apply innovation that will capitalize on this positive growth.

According to a recent article in Port Strategy, world trade is expected to increase from 2.2% growth in 2016 to 3.8% in 2017, with a similar level of expansion forecast for 2018. The article also cited growth in freight rates for Maersk in Asia as a positive reflection of that growth translating into more freight movement.

Port leaders around the world will be looking at how they can position their port to benefit from this growth. Introducing innovations like mobile apps to port operations is one way to achieve productivity gains, improve operational decision-making and maximize revenue opportunities.

While many industries have been aggressively adopting modern mobile apps based on commodity-priced hardware, the port sector has been more cautious. According to port consultant Thomas Vitsounis, writing in Port Strategy:

“In general terms, the use of apps will change the industry and everyone knows that. When it comes to ports themselves, things have so far moved slowly – but there has been a remarkable change… in the past year, it is tremendous how quickly this industry has shifted. Ports are now thinking in these terms. There is some distance to go but it is absolutely essential to move in that direction.”

There are some exciting opportunities to leverage this in your port by applying mobile technology in areas like cargo management, yard logistics, reefer management or rail service integration.

Some risks also exist though: in terms of choosing the best mobile app technology, the right support partner and successfully integrating a mobile approach into your existing IT systems, especially your TOS.

Jade Logistics have prepared a white paper “There’s an app for that” looking at the issues around mobility in ports, and what to consider when building your business case.

Also read the press release about Mexican based Grupo CICE testing and implementing the Master Terminal suite of handheld apps.

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Do you get what you pay for?

Some people love designer clothing but don’t like the price tag that go with them, so you can imagine the appeal with shops offering designer type clothing at lower prices. What is the risk if you buy a pair of shoes that don’t last more than one season? Do you want to be wearing those shoes in a year’s time, or should you pay more hoping they last?

Now apply the same thinking to purchasing a terminal operating system (TOS) and you might find yourself running into problems.  Investing in a TOS is a major investment, which unlike shoes, usually only happens once in a lifetime and must be approached with considerably more thought.

There are many things to be considered when selecting a TOS:

  • Starting with clear business objectives is essential. Will the TOS give you confidence to grow or will you need to adapt your processes to fit the TOS? 
  • Is the vendor reputable, reliable, proven and experienced? Do they offer training and support with a clearly defined research and development roadmap?
  • What is the Total Cost of Ownership?  There are many hidden and ongoing costs to consider, not just the starting price.
  • How quickly will you gain efficiencies and see a return on your investment?
  • What about integration? Is it seamless, or do you need to bring in other vendors, which can open you up to risk.

Would you like to know more? Download our white paper, Investing in Growth to identify some of the key factors to consider before buying a terminal operating system.

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Investing in growth

The challenge of growth confronts leaders of ports around the world. You are always looking for new ideas to improve your operation and extract more value from it. Learn how to build a business case for investing in growth.

Are huge capital investments in cranes or automation technologies the only real path to increasing your income? What other options are available to you?

These are the questions leaders of ports ask us on a regular basis in relation to investing in terminal operating system (TOS) software. 

Read the white paper Investing in Growth to learn more about how you can make a real difference to your operation by investing in a TOS.

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Finding calm in the chaos

Read our recently published article about how purchasing a terminal operating system poses less risk, provides a faster ROI, and ensures a more streamlined operation than investing in tangible capital assets such as cranes and machinery.

Jade recently had our article Finding calm in the chaos published in the latest version of Terminal Operator magazine.

The article discusses how purchasing a terminal operating system poses less risk, provides a faster ROI, and ensures a more streamlined operation than investing in tangible capital assets such as cranes and machinery.

Read the article here: Finding calm in the chaos.

Is global trade in rough water?

From August to October, America’s three biggest ports’ (Los Angeles, Long Beach, and New York harbor) imports fell by 10% during what is usually their peak shipping month. Global merchandise trade value also decreased by 13% in the first half of this year.

In past years as retailers flog their wares to hordes of holiday shoppers in December, ports have been equally as busy working to replenish merchandise. But ports are relatively quiet this year.

Although most economists are confident these statistics don’t translate as the demise of the global economy, they do tend to create nervousness within the port industry. Every terminal operator is aware that less demand results in increased competitiveness among ports and logistics companies.

However, during this sort of circumstance pressure can often lead to progress. The need to increase efficiency and decrease resource wastage has the potential to result in smart, innovative new ways of increasing competitiveness.

According to the DP World November 2015 report, investing in ICT innovation is one of the key principles ports should be following to increase competitiveness and level the playing field.

Ports may have the opportunity to invest in new ICT systems to help automate and increase operation systems’ efficiency. However, during uncertain economic times it is imperative to know for certain that any ICT investments will bring about a profitable return.

As part of an overall terminal transformation process, implementing a new terminal operating system (TOS) plays a core role in the upgrade. In order to successfully initiate a TOS, planning and processes are key.

There is little use investing in this kind of technology if the project causes more problems than it solves. In a busy, non-stop port, you can’t afford to implement a new TOS unless it goes smoothly.

Having implemented the Master Terminal TOS at ports all over the world facing all kinds of challenges, at Jade we’ve learnt a lot about what it takes to get this process right. It’s as much about people as it is about technology, and getting some of the small things right can make a huge difference to your implementation success.

To learn more about TOS implementation strategies, download our white paper Smoothing Your TOS Implementation.

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[1] http://www.wsj.com/articles/quiet-u-s-ports-spark-slowdown-fears-1447583406

[2] A turning point: The potential role of ICT innovations in ports and logistics. A report for DP World
Prepared by The Economist Intelligence Unit. November 2015

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Can Break-Bulk Terminals Avoid the “Perfect Storm”?

Break-bulk focused ports need to find ways of improving performance in an economic way.

In a recent Wall Street Journal article, maritime economist John Martin said US ports were facing a ‘perfect storm’ of under-investment in infrastructure while facing the need to cope with rising cargo volumes. This storm had “…surging cargo volumes slam ports ill-prepared to handle them.”

Retail strategist Frank Layo forecast in the same article that shipping delay costs to the US economic could reach $7 billion in 2015 and climb as high as $37 billion in 2016.

The struggles of the West Coast ports have been well documented. Investment expert Jonathan Rosenthal, managing partner of Saybrook Capital, expressed this in an article in the September edition of Logistics Management magazine about Los Angeles/Long Beach terminals, “In my business, we follow the money, and we see that the port ecosystem here is a little bit broken.”

Figures quoted in the Wall Street Journal put the world’s most efficient port, Jebel Ali in the United Arab Emirates, as turning container cargo 70% faster than the USA’s best performing terminal – the Port of Los Angeles.

In this perfect storm of rising demand and overcapitalized infrastructure, break-bulk focused ports need to find ways of improving performance in an economic way.

Less traditional terminals like those at the Port of Houston are stepping into the breach, offering services to shippers frustrated by congestion and delays. According to Logistics Management, Houston’s terminals experienced 20% growth in container cargo and 26% in break-bulk like steel in the year to June 2015.

“As a specialty break-bulk port, the types of cargoes we handle vary based on the current economic condition of the U.S.,” said Les Reardanz, CEO of WA-based Port of Everett, a user of Jade Logistics’ Master Terminal product, in a recent press statement. “The best way we can prepare for these market shifts is to have adequate infrastructure and a national freight strategy.”

Mr Reardanz was joining other ports in a call to the US government to put more focus on port infrastructure, particularly the landside connections.

Where break-bulk terminals can make their own quick gains in performance is upgrading their terminal operating system, to ensure every possible piece of capacity is extracted from existing infrastructure, delaying the need for costly investment.

Download our white paper Message in a Bottle: The challenges (and hidden opportunities) of managing mixed cargo.