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THE DIGITAL REVOLUTION IN SHIPPING AND SUPPLY CHAINS

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Author(s): Professor Jean-Paul Rodrigue, HOFSTRA University, New York, USA

Much of the improvements in transportation and logistics since the onset
of containerization have involved physical infrastructures. Transport and logistics flows were occurring at a velocity slow enough that much of the inefficiencies related to transactions and compliance (e.g. customs) were not particularly apparent. The growth and diffusion of containerization on and larger containerships, coupled with a global network of container
terminals, were all drivers that increased the modal and particularly the intermodal velocity of freight. Coupled with trade liberalization and facilitation, signifi cant additional demands for shipping and logistics occurred, placing transactional and managerial pressures. It thus became apparent that the transactional dimension of freight distribution was taking a higher toll on its velocity in relation to the physical dimension.


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