 TECHNOLOGY AND SHIPPING INDUSTRY

IMPACT OF IT ON SHIPPING INDUSTRY

 Cost Effectiveness – completion of operations at minimum cost

 Responsiveness – flexibility to change the schedules
 Timeliness – delivery on time

 Transfer of information / cost effective operations, effective planning

/ time saving / faster decision process – Result of IT implementation.
Role of IT in Ports

 IT system electronically link port administration, terminal operators, truckers, customs, freight
forwarders, carriers, ship agents and other members of port community.
 User can avail the real time data on status of cargo, availability of berths, vessel schedules,
documentation requirements, and availability of port infrastructure such as cranes.
 IT enables ship and the terminals to be the part of an office structure.
 IT has reduced the time of delivering cargo,
 It allows accurate transfer and recording of data,
 Led to reduced manpower requirement by making many process automated like documentation,
 Transfer of updated information on ship and vice versa
 Improve planning and coordination of berths, handling equipment's and storage facilities by collecting
information related to ship, barge, truck, wagon, container and cargo movements
 Various packages have been implemented at different ports internationally. For eg.
 INTIS at Rotterdam Port
 ADEMAR+ at Le Harve
 DAKOSY at Hamburg
 SEAGH at Antwerp
 FCP 80 at Felixstowe
 PORTNET at the Singapore port is the best example of effective usage of IT at any port.
PORTNET was initially developed in 1984 and has been upgraded several times later on. It is the
world’s first e-commerce network system connecting port and all other concerned parties.
 What is EDI?

 In simplest form, Electronic Data Interchange (EDI) is the computer-to-computer exchange of business
documents in a standard electronic format between business partners. Basic features of the EDI system
are:
 Computer to computer- unlike fax, posts or e-mails no person is involved in the EDI process. The
System itself processes the information and starts the required process.
 Exchange of business documents which are required to complete the transaction
 Standard electronic format is followed for all the documents to let the computer system understand and
process it. Various platform have been developed and implemented to develop the standard, system
readable formats of the documents such as ANSI, EDIFACT, TRADACOMS and ebXML. When two
businesses decide to exchange EDI documents, they must agree on the specific EDI standard and
version.
 An EDI translator is used for translating the information in a format which can help in internal usage and
dissemination of information.
A simple EDI process

 At the start of the implementation of EDI two parties have to agree about the standard to be used during the
interchange of data, the information to be exchanged, the network carrier (called a value-added network or
VAN), and when the information will be sent.
 A document, such as an invoice, is created in the business application of one of the participating organizations.
 The document is automatically reformatted by the EDI translator into the agreed-upon EDI standard.
 The translator wraps the reformatted document in an electronic envelope that has an ID for the organization
that is to receive the document.
 The envelope containing the document is then transmitted to the value added network (VAN), where the ID
on the envelope is read and the document is then placed in the correct mailbox.
 Documentation is received and decoded by the application at the receiver’s end.
 Information is also translated into a readable format for internal usage using EDI translator.

EDI and Indian Shipping Sector

 ICES (Indian Customs EDI system) have been initiated with an aim to create paperless work
environment in the country. Basic aim of ICES is to promote Trade facilitation rather than
control. EDI provides technology based linkage to customs with other departments:
 Customs to Port Trusts/Airport authority.
 Customs to Customs.
 Customs to DGFT (Min of Commerce).
 Customs to Export promotion councils, like AEPC, HEPC, etc,
 Customs to RBI/Banks.
 Customs to Importers/Exporters
 Customs to Custom House Agents
 Customs to Shipping Lines/Airlines
IT and Indian Port sector

 Ministry of Shipping has formulated following plan to make Indian ports competitive:
 Ports to use IT for quality performance
 Port Community System (PCS) to be installed and integrated with all the stakeholders
 Non-major ports to be connected with PCS
 Modern security systems like cctv and surveillance cameras in ports
 Vessel Traffic Management system for all ports handling EXIM cargo
 Implementing various e-modules for benefit of sea-farers
 With the establishment of Real Time Kinematic (RTK) system in the Gulf of Kutch and Gulf of
Khambat, Indian ports are progressing towards a paperless and computerised working
environment. [RTK is a satellite based vessel tracking system].