Big data has influenced many industries, such as healthcare, finance, banking, and more. These industries have reaped the benefits of using big data in their operations. Similarly, shipping companies must also be able to take advantage of big data if they want to stay ahead of the competition. In this article, we’ll talk about big data and how the shipping industry can take advantage of it.
What Is Big Data?
The term “big data” refers to a collection of large datasets that cannot fit into traditional databases or memory. This is because these datasets contain so much information that it takes up too much space.
Traditional data is collected through human observation, measurement, and recording. They remain fixed and are only used for calculating profits or losses. On the other hand, non-traditional data is collected by using sensors, cameras, GPS, radar, or other devices. It’s constantly changing and can come in less structured sources like videos, texts, and audio.
In big data, data is collected from both traditional and non-traditional sources and draws patterns from those sources. Since big data takes up a lot of space, they’re usually stored in the cloud. The data can then be analyzed and processed by algorithms to provide insights that improve a company’s operations.
How Shipping Companies Can Take Advantage of Big Data
Big data in the shipping industry refers to the information collected through various methods such as GPS tracking, satellite imagery, RFID tags, and other sensors. This includes everything from the route taken by ships to the weather conditions encountered along the way.
However, it’s important to note that big data often won’t be useful without big data analytics. Big data is so broad. Without analytics, they’re simply numbers that don’t make sense. So, businesses are missing out on some valuable insights if they don’t know how to analyze big data properly. In the shipping industry, when they start collecting and analyzing all this data, they get a better idea of what works best for their company. As a result, they can adjust their business practices accordingly.
Benefits of Analyzing Big Data in the Shipping Industry
As mentioned above, big data provides shipping companies with valuable insights that help them improve their operations. Here are some of the most common benefits of analyzing big data in the shipping industry:
1) Save Money
One of the main advantages of having access to big data is you can use it to optimize your operations. With this information, shipping companies can find out which areas of their operations require improvement to save money in the long run.
For example, they can track shipments and determine delays in deliveries. They can also analyze historical shipment data to determine whether there is any pattern associated with delays. Delays can cost shipping companies a lot of money. By analyzing the information they have from big data, shipping companies can identify potential problems before they occur.
2) Determine Best Routes
Shipping companies use a lot of data to plan their routes. They like to collect data from multiple sources such as satellites, GIS systems, and more. Companies need to be very familiar with different shipping routes and know what route works best for them. Big data helps shipping companies learn about the best shipping routes for global trades.
They can compare the cost and time required for different routes to determine which ones are worth taking. In addition, they can determine which routes are safer and faster than others. This improves their overall performance and profitability in the long run.
3) Automate Operations
Just like in other industries, shipping companies have started using automation to streamline their processes. Other industries, such as retail and banking, have started automating manual tasks like billing and invoicing. These manual tasks use a lot of resources, so they’re automated so they can be done more efficiently.
In this shipping industry, automating operations means that there will be fewer people needed on deck. There’s no need for human employees to do tasks like manually entering bills into accounts. Instead, the system would automatically generate these documents based on previous transactions. As a result, this saves the company money while improving its efficiency.
4) Identify Trends in the Industry
Big data allows shipping companies to understand trends in their industry based on past events. No matter what industry you’re in, spotting trends and understanding customer preferences are important. It helps you stay competitive and predict how your competitors might react in the future.
By identifying trends and predicting customer behavior, shipping companies can make smarter decisions that benefit everyone involved. For example, they can adjust their product offerings to meet the needs of specific customers or determine which regions to focus on next.
5) Improve Ship Building
The shipping industry involves more than just transporting goods. They also need to determine what kind of ships best suit their needs. The size of vessels, payloads, and speed play an integral role in deciding which type of ship is ideal for a certain job.
With big data, shipping companies can use the information for better ship architecture. They can gather tons of data across different sectors and then apply it to the construction process. Companies can check weight distribution, cargo placement, and other factors to ensure that the ship is safe and efficient. Ultimately, this results in better ships that perform better and last longer.
6) Reduce Energy Consumption
Shipping companies spend a lot of energy when they transport goods from one location to another. Whether it’s fuel consumption, emissions, or costs associated with electricity, shipping companies face several challenges.
That’s where big data comes in. With the right tools, shipping companies can identify patterns in shipment data and spot areas where they’re wasting energy. From there, they can implement changes that reduce energy usage. Not only does this help save money, but it also reduces carbon emissions.
The Bottom Line
As more data becomes available, organizations need to analyze it to gain new insights about their business. Big data can potentially transform many sectors, including the shipping industry. Shipping companies can benefit from big data by implementing strategies that ultimately improve efficiency and increase profits.