With shipping overcapacity set to stay above 20% in 2016, the industry could be gradually waking up to the potential of technology; and tech firms could help the industry to recover from a gloomy outlook, according to Reuters.
The companies named as having the biggest impact on the recovery of the industry are those assisting with the interaction between those transporting goods, as well as freight forwarders and shippers.
Jesper Kjaedegaard, Partner at Shipping and Logistics firm Mercator International, said: “This industry is broken, there's no question we have a serious issue. Without technology, this industry is not going to move much further.”
An example of a tech start-up assisting with the entire streamlining process is Xeneta who are working to achieve greater transparency with regards to shipping rates charged.
Xeneta recently found that the three main reasons for shippers switching carriers were price, risk management and loss of trust.
Patrik Berglund, CEO of Xeneta, previously said: “For shippers that negotiate long-term rates when the market is low there is a danger of ‘rolling cargo’, whereby their products are left on the docks to make way for shippers paying higher prices.”
In other news, Mr Bergland has just been announced as winning the 'Next Generation Shipping Award'.
MSC and CMA CGM-backed TRAXENS are another example of a tech firm that is working to streamline the shipping industry, by creating a system that monitors and coordinates containers.
