IHS FAIRPLAY

Danish Maritime Days 2016

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14 | October 2016 | Fairplay.IHS.com FAIRPLAY Industry insight ↘ Many people make the mistake of believing moneyistherootofallevil.Itisn't:theloveofmoney isthatcurse.Similarly,technologyisneitheragood norabadinfluenceonshipping;it'sjustaninfluence. However,whentechnologybecomesdisruptive,to usethetermcoinedbyAmericanbusinessobserver ClaytonChristensen,itstartstotakeonalifeofitsown. "Adisruptiveinnovationisatechnologicallysimple innovationintheformofaproduct,service,or businessmodelthattakesrootinatierofthemarket thatisunattractivetotheestablishedleadersinan industry,"hewrote. Shippingisonthethresholdofaseriesofinnova- tionsofatechnologicalnaturethatwilltransform, redirect,challenge,anddisruptthewaytheindustry doesitswork.Andnotbeforetime. Addressing the audience at CMA (Connecticut Maritime Association) in Stamford, this month, Dr Martin Stopford, researcher and author, suggested that the dry bulk business model characterised by "neoclassical perfect competition" was the wrong model for the 21st century. Shipping has become trapped in a world in which the ship is thesinequa non, the essential element without which nothing else exists. Around the ship we have built a planetary system in which the legal, financial, broking, insurance, technological, and dozens of other non-stellar objects revolve around the star-ship. Stopford believes it's time shipping became more focused on cargo than on ships, and on the much broader solar system of the supply chain than on the fortunes of individual vessels. As Christensen put it, "When you improve your product so it does the customer's job better, then you gain market share." There is much talk of disruptive technology coming from maritime businesses that are repositioning themselves in an attempt to stay ahead of the game. The arrival of smart or intelligent shipping is inevita- ble, Stopford said. Once people get used to the idea and we start using the technology more, "then someone will put all this together, and a new generation will come along". BusinessessuchasABBandRolls-Roycearealready inthisspaceanddescribeunmannedshippingasa Anthem for cruise shipping ↘ It's interesting to read online opinions about whether the cruise ship Anthem of the Seas, which encountered severe weather in the Atlantic last month, was an accident waiting to happen or a professionally-controlled escape from tragedy. Clearly the range of views is diverse. One report confirmed that the Super Bowl enthusiasts were able to watch the Broncos defeat the Panthers uninterrupted, in spite of wind speeds that hit 150–160kt, comparable with a Category 5 hurricane. The loss of an azipod and minor injuries to four passengers can be regarded as an indication that, high-sided and ungainly as Anthem and its sisters might be, unseaworthy they are not. Others emphasise what might have been. Loss of power or fire during a storm, it is argued, would have Time for some disruptive technology brought a tragically different outcome. This did not happen: the ship came through its test. There are two other lines of comment that should be addressed: what went wrong with the forecast, and why the cruise company gave permission for the ship to leave port knowing a storm was blowing. A weather forecast, in this case of 55–65kt winds, is a projection of what's likely to happen given all the variables that can be fed into the mathematical model. It is no guarantee; it is "an alert – an alert to be disregarded at your

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