WITH the global logistics sector valued at around US$9 trillion, according to Precedence Research, the challenge is to leverage new efficiencies in this lucrative industry. The market research company says the global logistics sector is experiencing “a significant shift toward digitisation and automation”.

“Logistic companies are increasingly adopting technologies such as internet of things, artificial intelligence, machine learning, and robotics to streamline operations, improving efficiency and reduce cost,” Precedence says.

Meanwhile, climate change conditions are forcing a range of changes in international logistics and this push for change and innovation is increasingly being observed in the Australian maritime logistics sector.

Change on the waterfront

Innovations occurring on the waterfront include the OptiBook container management system. OptiBook was designed by OneStop to connect ports, transport companies and truck drivers by “reducing dwell times, optimising truck utilisation and promoting safer, more sustainable supply chains”.

It was introduced at Patrick Terminals in Melbourne a year ago and, at the time of writing, was being rolled out at DP World Australia’s West Swanson terminal in Melbourne. The new system is fully integrated with the OneStop vehicle booking system and went live in early December 2024.

Transport operators are expected to experience a “smoother more efficient container booking experience, where they can manage all their containers from a single, intuitive screen via the platform”.

Carriers are also expected to benefit from increased visibility of their bookings and manifest information and real-time communications through the OneStop Deliver App.

When OptiBook was introduced at the Patrick East Swanson terminal in Melbourne in late 2023, Patrick Terminals chief executive officer Michael Jovicic said that OneStop had developed a system that would help optimise landside container management.

“OptiBook will offer enhanced container visibility, real-time booking options based on container availability, resulting in a reduction in dwell time and improved truck flow through our terminals, all of which will optimise our landside operations,” Mr Jovicic said.

“It’s a win-win for transport operators, truck drivers and our terminal team.”

Innovation through software

Also having an impact in the vehicle booking segment is Inbound Connect, a software and technology company launched in 2020 that aims to solve long-standing issues that affect logistics operators. Its chief executive officer and co-founder Luke Duffy said it became obvious that the sophistication and power of vehicle booking systems in port terminals and empty container depots could also be applied to solving the problem of inefficiency and costs associated with trucks arriving randomly at logistics facilities.

But to achieve this, there would need to be a technology platform “more adaptable and customisable than what was available in the port logistics market”.

“This is the core of how and why Inbound Connect was born,” Mr Duffy said.

He said all logistics facilities with trucks arriving at random are likely to have the same problems – congestion, lack of ability to plan (labour, equipment, space), manual process and paperwork, compliance problems, lack of visibility and safety risks.

“Inbound Connect was designed as an ‘all of supply chain’ solution to these problems – that is, any facility performing any function can easily implement the platform and become part of the Inbound Connect community,” he said.

“In doing so, these problems are solved quickly by a combination of technology and advice from Inbound Connect based on our significant experience. The addressable market is enormous, and accessible only because of the adaptable and customisable nature of the Inbound Connect platform.”

By investing heavily in artificial intelligence and machine learning, we’re able to analyse each stage of the transportation process

Amar Rizvi, iMile Delivery

Mr Duffy said uptake in Australia has been strong.

“Coming to market for the first time just as the first Covid-19 wave hit … today Inbound Connect operates at around 80 facilities across Australia and New Zealand,” he said.

“These facilities perform various functions – including container freight stations (CFS pack/unpack warehouses), 3PL and 4PL contract logistics warehouses, breakbulk and automotive ports, regional container ports, intermodal/rail hubs, manufacturing plants and FMCG distribution centres.

“There is a real demand from the broader supply chain for the technology solution Inbound Connect offers,” Mr Duffy said.

“To say that Inbound Connect has transformed the parts of the supply chain in which it operates would not be an overstatement.”

Mr Duffy said the company was growing quickly in Australia and expected this to continue as the problems are common and do not simply solve themselves.

“We have recently implemented Inbound Connect at 14 empty container depots in NZ for Qube and we have confirmed interest from a number of facilities in New Zealand, Singapore and in the USA,” he said.

“As well as our flagship vehicle booking system and related automation functions, the platform is also becoming a payment gateway of choice for large sections of the supply chain, as it provides a watertight, automated and cost-effective way of ensuring revenue capture for certain logistics functions.”

Mr Duffy said he expected the fast rate of growth to continue for Inbound Connect both in Australia and overseas.

A smoother supply chain

Using “smart logistics” to create a smoother supply chain is iMile Delivery, a company founded in 2017 but which is already well-established in Australia.

“The iMile business seeks to bridge the gap between ecommerce businesses and their customers by offering efficient, tech-enabled delivery solutions in some of the world’s most challenging logistics markets,” iMile Delivery chief strategy officer Amar Rizvi said.

“Recognising the unique requirements of online retailers, our founders and management team strategically developed a logistics capability with competitive strengths – namely speed, accuracy and traceability.”

The iMile business serves some of the world’s leading e-commerce players and continues to expand globally. Its operations are powered by a specialised team of more than 200 engineers and developers.

According to Mr Rizvi, this in-house capability enables the company to develop proprietary tech tools that streamline the entire delivery process, from order placement to final delivery. The business has placed a heavy emphasis on using new technology.

“By investing heavily in artificial intelligence and machine learning, we’re able to analyse each stage of the transportation process, focusing on costs and efficiencies,” he said.

“Our bespoke tech software optimises delivery routes, reduces fuel consumption, and helps to minimise delays, achieving industry-leading efficiency levels even during peak periods like Black Friday and Christmas.”

The company uses data to help make informed decisions. Predictive analytics allow for the forecasting of high-demand products, planning for seasonal trends and preparing for potential supply chain bottlenecks.

“These insights ensure we remain a reliable partner to retailers while enhancing the consumer shopping experience from first touch to fulfilment,” Mr Rizvi said.

Automation and robotics

The iMile business seeks to excel in warehousing, a critical component of any supply chain. By integrating robotic process automation (RPA) in its warehouses, iMile minimises human error, accelerates sorting and packing and ensures accuracy at scale.

Robotics also enables flexible inventory management and faster processing of goods during seasonal peaks. According to PwC’s consumer insights, speed remains a high priority for consumers, with 41% open to paying a fee for same-day delivery during peak demand and nearly a quarter (24%) willing to pay more for a specific one or two-hour delivery window.

Mr Rizvi said iMile’s approach was to maintain high global standards while tailoring services to local needs. He said operating across diverse countries requires adaptability to local regulations, infrastructure, working culture and consumer expectations.

“By staying flexible, we accommodate regional requirements without compromising our service standards,” he said.

“In Australia, for instance, our logistics model is designed to address challenges unique to this vast country, such as extreme temperatures, vast distances and servicing both urban and remote areas, creating a solid national network for retailers to tap into.”

Mr Rizvi said iMile was exploring several greener delivery options, such as electric vehicles for short-haul routes, and had implemented sustainable practices in their warehouses and packaging.

“These initiatives align iMile’s growth objectives with broader environmental goals, supporting our ESG program and corporate responsibility,” he said.

Mitigating climate change impacts

Transportation of goods is among the many aspects of life that will be impacted by climate change. As noted in a transport brief by sustainable business network BSR, warmer temperatures and more frequent and severe extreme weather events “will increase pressure on transportation companies to adapt to changing regulations and customer concerns, along with threats to assets and infrastructure”.

“The sources of this pressure are variable; ranging from those suffering immediate threats from climate change to those pushing for proactive management of assets and key components of global supply chains,” BSR stated.

As noted by UN Trade & Development (UNCTAD), “efforts to decarbonise global shipping while promoting investments and digital solutions will be key to enhancing supply chain resilience for small island developing states”.

The UN Global Supply Chain Forum held in Barbados in May 2024 not only focused on the need to decarbonise shipping but also to use digital solutions in order to bring about supply chain resilience.

“Digital technologies will be key to strengthening global supply chain resilience,” UNCTAD stated.

“Innovations like blockchain-enabled traceability mechanisms and advanced customs automation systems were showcased as indispensable tools for optimising trade facilitation processes, enhancing transparency, and mitigating operational risks.”

The implications are that container vessels are going too fast and waiting outside ports … which of course is both really expensive and causing unnecessary emissions for the environment.

Thor Thorup, Portchain

Innovations in the face of a changing climate can require lateral thinking. One example is Maersk’s Panama “land bridge” to overcome a drought-impacted Panama Canal.

This concept split the company’s Oceania-Americas service into two loops, utilising Panama’s 76-kilometre railway to bridge the gap between the southern point of Balboa and the northern point at Manzanillo. This ensured that cargo could bypass the drought-affected canal and continue moving seamlessly between Oceania and the east coast of the United States.

“Maersk’s Panama land bridge was a prime example of supply chain agility and innovation during a crisis,” the company said.

“Maersk quickly deployed this alternative route to preserve service reliability and ensure customers faced minimal disruptions.”

The land bridge offered a stable connection, ensuring reefer-containers maintained temperature control throughout the journey.

“The Panama land bridge is not just a short-term fix but a demonstration of how logistics providers can be agile in the face of global challenges,” Maersk said.

“This solution has the potential to inform future strategies for handling disruptions in global shipping routes and highlights Maersk’s leadership in creating sustainable, resilient and flexible logistics solutions for the long term.

“The lessons learned from the land bridge solution can serve as a model for addressing similar crises in other regions and sectors.”

Digitising berthing and alignment

Portchain, a Danish company aiming to drive digital transformation in container shipping, is expanding its presence in Oceania.

With its berth planning and alignment digital solutions already adopted across several major terminals in Oceania, the company has stated it is “committed to bringing even greater efficiency, predictability and sustainability to the regional container shipping industry”.

Portchain co-founder and chief commercial officer Thor Thorup spoke with DCN about the growth of the business and how it was aimed at allowing industry to achieve just-in-time operations at scale.

“If you look at the way that container vessels are co-ordinated in and out of ports today, it’s a completely manual process,” Mr Thorup said.

“It’s emails, it’s phone calls, it’s spreadsheets, it’s WhatsApp messages. Because of this manual process and quite rudimentary planning process, it means there’s a lot of inefficiency in the system.

“The implications are that container vessels are going too fast and waiting outside ports and that means they’re burning a lot of excess fuel, which of course is both really expensive and causing unnecessary emissions for the environment.”

Mr Thorup said Portchain offered two combined products: Portchain Connect (a data platform) and Portchain Quay (a berth planning tool developed in collaboration with berth planners).

To say that Inbound Connect has transformed the parts of the supply chain in which it operates would not be an overstatement.

Luke Duffy, Inbound Connect

Portchain Connect now has more than 130 container terminals on board and a number of container shipping companies including Hapag-Lloyd and Ocean Network Express. Mr Thorup said the berthing technology was making a difference.

“With the Portchain combined products, you can ingest your vessel schedules directly from the shipping line system,” he said.

DCN asked if the Covid-19 experience hastened demand for digital berthing technology. Mr Thorup said there is a contrast in digital maturity among the Oceania container ports (incorporating the Australian east coast and the Pacific Islands), meaning Portchain had to be flexible.

“Terminals can either decide to integrate to the platform or they can simply use a user interface that we provide so they can actually just access,” Mr Thorup said.

“Instead of sending an email, they can basically just go in and update and review directly in a very friendly user interface that gives them the overview of all the information and they can quickly update that,” he said.

Mr Thorup said the company’s contribution towards sustainability is apt in the Oceania region with smaller nations threatened by rising sea levels.

“If we look at the region in general and also for shipping lines, one of the big factors in reducing CO2 emissions is how long is the vessel sea leg coming into the ports,” he said.

“For one vessel coming out of China into the Australian east coast, they could save around 150 tonnes of fuel because they were basically sailing too fast compared with what was available when the terminal actually had available space for them.

“If you look at 150 tonnes of fuel, that’s it’s around 500 tons of CO2. Just to put that into perspective that these are the opportunities that can happen, let’s say on an ongoing basis.”

This article appeared in the December 2024 | January 2025 edition of DCN Magazine