Autonomous ships market worth $19.1 billion by 2030

According to a new market research report the autonomous ships market is estimated to be AUD 8.4 billion in 2018 and is projected to reach AUD 19.1 billion by 2023, with Asia Pacific showing the highest potential for implementation of autonomous ships.
The report finds that this market is driven by factors such as the increasing world trade by sea, increasing maritime navigation, increasing demand for automation systems for safety, and growing maritime tourism.
The fully autonomous segment to grow at a higher CAGR in the autonomous ships market, among all autonomy level during the forecast period
Based on autonomy, the fully autonomous segment is estimated to lead the autonomous ships market during the forecast period. The increasing demand for autonomous ships owing to rising human error-related accidents and increased operational expenditure is expected to drive the market for the full autonomy segment.
Increase in the demand for commercial vessels is expected to drive the line fit segment in the autonomous ships market
Based on end use, the line fit segment of the autonomous ships market is projected to have the highest CAGR in 2018, as a result of the increase in demand for automation systems from ship operators. As the demand for commercial ships is expected to increase in the future, the line fit segment is expected to grow.
Asia Pacific is estimated to lead the autonomous ships market in 2018. Asia Pacific has witnessed rapid economic development over the years, resulting in an increase in maritime trade. This rise in sea trade has subsequently led to an increasing demand for ships for the transportation of manufactured goods worldwide. Thus, the rising number of ships has increased the demand for autonomous ships in the Asia Pacific region.
The major players in the autonomous ships market include Wartsila (Finland), Kongsberg Gruppen (Norway), Northrop Grumman (US), Rolls-Royce (UK), General Electric (US), ABB (Switzerland), and Honeywell International (US), among others. Rolls-Royce and Kongsberg Gruppen are key market players engaged in contracts and acquisitions to increase the sale of automation systems and autonomous ships for different applications.
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Swinburne University: 3D concrete printing takes the ‘boring’ out of buildings

Construction is one of the largest industries in the world economy – worth $10 trillion globally – equivalent to 13 per cent of GDP.
But, Professor Jay Sanjayan, from Swinburne University of Technology, explains that construction has suffered for decades from remarkably poor productivity compared to other sectors.
While agriculture and manufacturing have increased productivity 10-15 times since the 1950s, construction remains stuck at the same level as 80 years ago, he said.
“That’s because construction remains largely manual, while manufacturing and other industries have made significant progress in the use of digital, sensing and automation technologies.
“We and other research groups see 3D-printed concrete as a possible solution to these problems. The technique will likely also give architects the freedom to inject more creativity into their designs for new structures,” said Sanjayan.
Modern civil infrastructure is almost entirely built with concrete. More than 20 billion tons of concrete is used per year, Sanjayan explains.
“The only material we use more than that is water.
“The construction industry is facing a number of serious problems, including low labour efficiency and high accident rates at construction sites.”
According to the Australian Bureau of Statistics, the construction industry has the highest rate of work-related injuries at 59 per 1000 workers.
There are also difficulties in quality control at construction sites, high levels of waste and carbon emissions, cost blow-outs, and challenges in managing large worksites with a vanishing skilled workforce.
Disruptive technologies such as 3D concrete printing can offer solutions.
3D construction uses additive manufacturing techniques, which means objects are constructed by adding layers of material.
Conventional approaches to construction involve casting concrete into a mould.
But additive construction combines digital technology and new insights from materials technology to allow free-form construction without the use of formwork.
Eliminating the cost of formwork is the major economic driver of 3D concrete printing. Built using materials such as timber, formwork accounts for about 60 per cent of the total cost of concrete construction.
It’s also a significant source of waste, given that it is discarded sooner or later.

Higher education boosts salary for logistics professionals: Deloitte

A new report from advisory service Deloitte Access Economics has found that Australia’s supply chain and logistics workforce will reach 161,000 people in 2021/2022, up from 145,000 in 2016/2017.
This represents an annual growth rate of 2.1 per cent, above the projected growth of the Australian workforce as a whole, 1.5 per cent.
The future of work: Occupational and education trends in supply chain and logistics in Australia also found that postgraduate qualification impacts the earning power of the sector’s professionals, boosting lifetime salaries by 48 per cent, compared to individuals with no post-school qualifications.
In 2016/2017, supply chain and logistics professionals with relevant postgraduate qualifications commanded an average annual income of $140,949 – 66 per cent more than workers in the sector with no post-school qualifications.
By 2021-22, this is expected to rise to $164,360, a 14.3 per cent hike.
According to Deloitte, technological revolution is driving jobs growth in supply chain and logistics faster than in the general workforce, putting pressure on managers to acquire new skills in e-commerce and data analytics.
“With new technologies such as drones, driverless vehicles, 3D printing and sensor technology seeing increased deployment across various supply chain functions, there will be greater opportunities for supply chain professionals to adapt business operations in procurement, production and distribution to effectively and efficiently use these digital tools,” said Professor Booi Kam, the Program Director of the Master of Supply Chain and Logistics Management at RMIT University, who consulted with Deloitte for the report.
“Technological developments are providing significant opportunities for applying data analytics to improve supply chain and logistics operations across functions such as demand forecasting, inventory management and supply chain visualisation. The use of data analytics to inform these decisions is increasingly being recognised as best practice in supply chain management.”
David Rumbens, Partner at Deloitte Access Economics, added: “The growing importance of digital technology means there is an increasing reliance on data-driven insights to improve supply chain efficiency and effectiveness.
“The evolution of the supply chain is also being accelerated by consumer-driven change, as customers move towards e-commerce away from traditional ‘bricks and mortar’ retailers to online purchases and e-commerce.”
Read the report here.

Linfox invests in health research

Transport and logistics company Linfox is funding a major new research study with Monash University to better understand the health and wellbeing of workers in the industry.
Monash University researcher Professor Alex Collie told Linfox that, while past research has focused on driver fatigue and safety, there have been no large Australian studies of health and wellbeing of workers in the sector.
The Linfox-funded Transport and Logistics Industry Health and Wellbeing Research Study will reportedly seek information on diet, exercise, chronic illness, stress, mental health and other conditions associated with long-haul driving and warehouse operations.

Toll MD accepts new role

Deakin University’s Centre for Supply Chain and Logistics (CSCL) has appointed Toll Group Managing Director, Michael Byrne, as its inaugural Adjunct Professor.
CSCL Director, Dr Hermione Parsons, said Byrne’s extensive experience in the supply chain and logistics sector positioned him as an innovator whose insights were highly sought-after.
“Michael is a statesman, a thought leader and a visionary. He has an exceptional mind. He makes an exceptional contribution to this industry and is so generous with his time and his thoughts,” said Parsons.
Byrne warmly welcomed his appointment as Adjunct Professor, using his inaugural address to urge the industry to help shape the next generation of innovative thinkers.
“As industry leaders it is incumbent upon us to attract, retain and develop talented people to propel our industry forward,” said Byrne.
“In order to do this, the industry must take an active role to shape the next generation’s curriculum by making mathematics a core subject; expanding languages to build a multilingual Australia; and rethinking higher education as a norm – not an exception.”
CSCL will reportedly draw on Byrne’s history of thought leadership to help inform the direction of its research and education programs, and address students in the New Year.
“CSCL believes strongly in industry engagement as a means of underpinning our applied research projects,” Parsons said.
“It’s a pleasure now to also have Michael supporting us as an Adjunct Professor and I look forward to working with him.”

Slow IT uptake for transport and logistics

A new survey has revealed that transport and logistics businesses are lagging in IT uptake, though the sector has ample opportunity to improve and develop.
The Australian Bureau of Statistics’ (ABS) Business Use of Information Technology and Innovation in Australian Business (2015-2016) report found that 31.9 per cent of businesses in the ‘Transport, Postal and Warehousing’ sectors introduced IT innovation in the period, while 12.9 per cent continued established innovation plans.
Only 27.2 per cent of transport and logistics businesses reported that they had placed orders via the internet, while 21.6 per cent received online orders.
A fifth of the businesses surveyed reported having a social media presence, while a quarter were found to have a web presence.
For those transport and logistics companies who launched innovation processes in the period, one in five noted that the process change focused on goods and services, 16.8 per cent focused on operation processes and 15 per cent on organisation or managerial change.
 

Think differently

This interview first appeared in the February/March 2017 issue of Logistics & Materials Handling.
Global megatrends such as globalisation, urbanisation and digitisation are forcing Australian logistics businesses to commit to a new, much more comprehensive mindset.
In a move to renew the company’s focus on innovation and future growth, Linfox founded a stand-alone Development, Strategy and Innovation (DSI) business unit in late 2015. A year on, Logistics & Materials Handling spoke to Chris Hemstrom, head of the ambitious project, about the essence of innovation and the role of creativity in modern business.
Q: It’s been a little more than year now since you became head of Linfox’s new DSI unit. In a time where the term innovation is seemingly losing traction – the Prime Minister’s 2016 Innovation Initiative was deemed too elitist to be successful, for instance – how do you ensure people understand what you’re trying to achieve?
A: That’s an interesting question. To move away from that innovation buzzword, I’d like to think of DSI as an organisational development tool. Our goal is surprisingly simple: to make sure we are delivering value to our client base. Our strategy is therefore much more focused on understanding our customers, their requirements, and how we can best help them than on innovation per se or simply acquiring more business. In fact, you may be surprised to learn that Linfox has shrunk the number of customers we have by almost two-thirds since the GFC (Global Financial Crisis, ed.), while the business has grown quite substantially in terms of its scale. In focusing on fewer customers, we’ve been able to create more value for and grow with our existing ones.
Q: Surely that doesn’t mean you’re not open for new business?
A: No. All we do within the DSI team is look differently at the concept of business development. Part of the reason why DSI was formed was to help scan the market, help identify work with potential new customers and understand what it is they’re after, of course. But we don’t approach it in a transactional way where we create a new service and then try to sell it as much as possible. Rather, we try and understand where there might be a gap in the market, where there might be a problem that someone else hasn’t been able to solve but that we might be able to handle. We look at that both from the perspective of deploying our existing capabilities and services as well as building new capabilities.
Q: Can you give us a more concrete example of that process?
A: One area that we’ve done a lot of work in, for example, is developing and deploying efficient warehouse management systems. We have a long-standing relationship with SAP here, which has a very sophisticated core technology that has been developed over a long period of time. At Linfox, we’ve got special expertise in how to run warehouses and how to deploy their systems, so together with some external suppliers, we have created some very efficient routines, if you like, to make modern warehouses more efficient. In fact, in a first for Linfox, we’ve recently secured two contracts to provide SAP warehouse management system maintenance, support and rollout services to two customer sites – I think many 3PLs are not quite as engaged in the R&D side of things as we are.
Q: So it’s more about the way you approach a problem – a mindset issue, if you will?
A: Precisely. We’re using the design thinking process developed by the Hasso Plattner Institute (HPI) at the University of Potsdam, Germany, and Stanford University, or at least the methodology behind it. It was originally intended as an innovation method for products and services, but has advanced to a completely new way of seeing people in relation to work, of imagining the concept of work and of posing questions about how we want to live, learn and work in the 21st century. To translate it back to what we do, we’re basically saying ‘we want to understand how we can work at the leading edge of technology and bring new efficiencies into our businesses instead of just taking what we’re offered.
Q: That’s quite an academic approach for a privately owned logistics business. Do you sometimes think you are doing everyone else’s work?
A: No. We’re an early mover who is actively bringing promising technology companies into the transport space – that’s all. Without us bringing some of them into the market, they probably wouldn’t have arrived yet. I suppose when you’re a leading player, you need to go down that path to keep moving. If you lead and keep leading while everyone else is trying to get to where you were two years ago, you always have an edge. At the same time you help bring up the standards of the industry at large. I’m hoping we are, anyway.
Q: In that context, does the push of disruptors like Amazon or Uber in the logistics space worry you?
A: We do recognise that the world is changing very quickly. Every day now you’re reading about Amazon and how it’s going to take over the world, and you’re reading about Uber and how it’s going to take over part of the transport chain. What we’re saying is that that may be true, but we’re still in the game. We think we’ve got some different ideas that could add value. To get that across, we have quite an extensive program of talking to our customers and to prospective new customers – not in a sales-y sort of way, just to learn about their problems – which we call our discovery process. Again, it’s not a sales program. It’s a program of understanding how industry is changing. Quite often it’s us that instigate change by just asking the question. That’s probably why I am not all too worried about Uber at the moment.
Q: You are not standing still either, though. Linfox has recently launched a multi-million dollar partnership with Monash University to advance the transport industry’s innovation agenda and provide more education opportunities for the Linfox team. A result of the work DSI has done?
A: It’s been a team result of course, supported by DSI. The Monash University partnership is a critical part of a longer-term strategy for the business to make sure that there is a structured education program for everyone that works in the business, because we believe it will bring value to the customer at the end.
Q: So it’s not just a leadership program, to pick up on the elitist debate once again?
A: Absolutely not, no. Linfox College, our current internal education program, already touches everyone in the business, and our ambition is to expand on that. In fact, Linfox College allows family members to be educated as well as part of the program. There’s quite a substantial array of different courses for them. What we’re trying to do with Monash simply adds more pillars to the program, so we can enable people to go up from doing employment-based courses or single unit courses to Bachelor’s or Master’s degrees, or even PhDs where that’s relevant. But, at the same time, we also get access to the expertise within the university system, and Monash is, as you’re well aware, one of the top universities, not only in the country, but globally. Being able to get access to its research team and its ways of looking at the world will also help us in our innovation and R&D agenda.

Data management top tech priority for global supply chain

A new survey carried out by supply chain operator Geodis has found that the top five technology supply chain priorities globally are all related to data management, they are data analysis, Internet of Things, cloud computing, info security and predictive analytics.
“In the wake of globalisation and rampant digitalisation, commercial trade flows have evolved dramatically,” the company said in a statement. “Both the volume and the scope of services managed within supply chain have reached unprecedented levels.”
Seventy per cent of respondents of the 2017 Supply Chain Worldwide survey stated that they consider their supply chain to be either ‘very’ or ‘extremely’ complex, and they also emphasise the strategic position it has reached in their overall organisation.
The majority – 57 per cent – of firms surveyed said that they consider their supply chain to be a competitive advantage, and 66 per cent dedicate 5–15 per cent of their turnover to supply chain spends.
Three quarters of the firms Geodis spoke to reported that they use four or five different transportation modes in their supply chain, with road (full truckload) and airfreight the two most common.
Focus on achieving full visibility over the supply chain – from suppliers of suppliers to clients of clients – has increased in recent years – it is now the third most important priority reported, while it came in sixth place in the 2015 survey. Only six per cent of firms succeeded in reaching this target, however.
“[The] supply chain has become more customer focused and mostly considered as a lever to win competitive advantage,” the statement concluded.
 

DB Schenker, DPWA and Hamburg Sud join forces for blockchain trial

One of the largest and most comprehensive trials of blockchain technology for global supply chains has successfully ended with a new Australian-developed blockchain security architecture from TBSx3 which has the potential to raise global supply chain security to a military grade.
The TBSx3 system uses military-grade 44-alphanumeric-character security cryptography, compared to the six-digit public cryptography which up until now has been commonly used.
The new TBSx3 benchmark was successfully used on an 8,100km global road-and-sea supply chain stretching from the wine-growing Coonawarra region of rural South Australia to the port of Qingdao in north-eastern China, which ended this week.
Partners included DP World Australia, DB Schenker, Hamburg Sud and Australian wine producer IUS, which exports seven product lines into the rapidly growing Chinese wine market.
KPMG advised TBSx3 on the trial and verified the custodial handovers for the integrity of the product on the 8,100km land-and-sea journey. Furthermore, KPMG simulated the customer at the end of the trial by receiving, validating the product and checking if the system could potentially detect duplicates.
Ron Koehler, CEO, DB Schenker Australia and New Zealand, said, “In a globalised world, the safety and security of supply chains for the medicines you buy, the food you eat, the parts that are used for your cars and the planes you fly in cannot be taken for granted.
“Supply chain security affects everyone – consumers, companies, communities.
The Hon. Arthur Sinodinos, Minister for Industry, Innovation and Science, added, “Blockchain is an exciting technology with great potential for Australian businesses and SMEs. It promises to reduce costs, create new market opportunities and transform industries.
“Importantly the technology provides a new opportunity for Australian exporters and their customers to verify the authenticity of their products, protecting the reputations and brands of both Australia and Australian business.”
The successful completion of the trial between Australia and China is the first of a planned series with multiple partners which will “simultaneously test the robustness of TBSx3 blockchain technology for every custodial link in global supply chains and also verification protocols for both bulk product and individual items for retailers and consumers at the end of the chain,” according to TBSx3’s Chairman, Anthony Bertini.
“In terms of the numbers of partners simultaneously involved and the challenges posed for resolution of integration with multiple existing proprietary security systems we believe this can be developed to become a new security benchmark.”

Deakin surveys supply chain and logistics industry

The Centre for Supply Chain and Logistics (CSCL) at Deakin University is keen to hear from the supply chain and logistics industry about pallet usage.
“Researchers at CSCL are hoping to establish a regular Australian pallet survey about user requirements and usage patterns nation-wide,” said Dr Hermione Parsons, Director of CSCL.
“We found that Australian information on pallet usage is not readily available, and we have nothing in Australia that compares with the US Pallet Survey, for example,” she added.
“Pallets may not seem a very glamorous topic for research but they are crucial to Australian supply chains.
“We are hoping to pick up on trends such as ‘less-than-pallet-load’ requirements, as freight becomes much more granular, and the trends in requirements for pallet tracking.”
The Australian Trucking Association is encouraging its members, as well as other key industry manufacturing and transport and logistics peak bodies, to take the anonymous five-minute online questionnaire.

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