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Autönömöus Sea Trade, Pössibility För The Near Future?

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Autonomous sea trade, possibility for the


near future?

Project

Chapter 1
Introduction

1.1 Background of the Study:

The maritime industry is well understood to economists because it plays a big role in global
trade. More than two decades, the maritime industry has been transforming its business
nature toward technology innovation1. Over the years, when automation entered in the
competing world Bendorf in 1969 and Harlander in 1964, tackled a cost comparison analysis
for automated ships, and therefore the extent to which vessels should be automated. The
technology and innovation was not matured at that time though, today following the
automation trend, now transforming towards a totally automated vessel.

It further also puts into perspective the importance of the role shipping plays within
the global supply chains utilized for trade and industry. As a link during a bigger supply
chain system although, the Shipping Industry and its direct stakeholders must keep itself
informed of and react to, if not anticipate changes that would effect that provide chain,
whether it's local, regional or global2. While automation in shipping develops, the
flexibility to give a competitive advantage through greater efficiency is driving the shipping
industry to re-assess its operational structure.

i
Pinto, Hugo, Ana Rita Cruz, and Colin Combe. "Cooperation and the emergence of maritime clusters in
the Atlantic: Analysis and implications of innovation and human capital for blue growth." Marine Policy 57
(2015): 167-177.
ii
Pavlović, Duško, and Božica Radoš. "The impact of transport on international trade development." Acta

Economica Et Turistica 1, no. 2 (2016): 125-140.

1.2: Statement of the Problem:


Since technology develops, countries around the globe have understood the immense
potential automated systems withhold. The challenge the industry faces is not only looking at the
current cost structure of liner shipping and see if or how the coefficients of the components will
change, but also figuring whether new cost components need to be accounted for. Furthermore, an
important field of research is ship operating processes, how they will change, and the costs to be
gained or lose from these changes. At present, the little is currently know about the effect that the
technological innovation of autonomous ships will have on the shipping as a link within a larger
supply chain, and therefore affect on the Shipping Industry that depends on the supply chain 3. To
better prepare all stakeholders of economy and support with informed decision making, further
research in this field is required.

1.3: Research Objective

Research is needed in this area in order to allow actors currently within the different
industries to prepare for and place themselves strategically for the impact that Autonomous
Shipping could have on the industry, and the industries are adjacent to it. Furthermore, an
important field of research is ship operating processes, how they will change, and the costs to
be gained or lose from these changes. Operating processes refer to the set of processes
involved in running a vessel which include manning, maintenance, and steering, thus we have
the narrow scope of the technical processes required to run the vessel

iii
3.Rødseth, Ørnulf Jan. "Assessing business cases for autonomous and unmanned ships." Technology and
Science for the Ships of the Future. Proceedings of NAV 2018 (2018): 19th
1.3.1: Main Objective

It is necessary to determine:

 The impact of automation on liner shipping operating processes and operating cost
structure exists.
 The place autonomous ships will have in future supply chains- and networks.

 How those supply chains- and networks will be impacted.

 What are the necessary competitive factors driving autonomous ships.

1.3.2: Specific Objective:

The important point of this study is to determine the impact of Autonomous Ships on the
supply chain and economy but also specifically on the current shipping industry and its main
stakeholders.

1.4: Research Questions:

Following are the research question of the study

 What will be the place and role of shipping in future supply chains- and networks?
 What are the risks and opportunities that autonomous ships will represent?

 How may these risks and opportunities be respectively mitigated and exploited by
both private industry as well as national, regional and international governing
authorities?

 What is the impact of the introduction of automated vessels on liner shipping


operations?

 How will these processes change for an automated vessel?


1.5: Rationale of the study

This study is to investigate the impact of Autonomous Ships on the supply chain ,networks,
economy specifically on the current containerised shipping industry and its main stakeholders.

1.6: Significance of the Study:

it is essential to explore the key perspective of trade and economics in relation to the
technological modernization presented by autonomous ships. The main goal of study is to set a
foundation for future research to allow more real and route specific strategies to be devise for
stakeholders, such as Developing Countries that are interested in ensuring the correct
infrastructure is put in place, and that the correct local industries are developed.

This study aim to sets the objective of the different technical units required for such
vessel to be automated. Second, presents a cost benefit analysis, legal and liability analysis,
and safety and security analysis to present the benefits of unmanned shipping.
References

1. Pinto, Hugo, Ana Rita Cruz, and Colin Combe. "Cooperation and the emergence of
maritime clusters in the Atlantic: Analysis and implications of innovation and human
capital for blue growth." Marine Policy 57 (2015): 167-177.

2. Pavlović, Duško, and Božica Radoš. "The impact of transport on international trade
development." Acta Economica Et Turistica 1, no. 2 (2016): 125-140.

3. Rødseth, Ørnulf Jan. "Assessing business cases for autonomous and unmanned
ships." Technology and Science for the Ships of the Future. Proceedings of NAV 2018
(2018): 19th.
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ii

iii

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