Diginomics

WORKING
PAPER

Digital Transformation of Maritime Supply

Chains Focusing on Ocean Shipping, Port
Management and Hinterland Connection

Hans-Dietrich Haasis, Hapsatou

June 2022 No. 0017

Impressum:

Diginomics Working Paper

ISSN: 2701-6307

DOI: [Link]

Published by:
Universität Bremen, Diginomics Research Group, Max-von-Laue-Straße 1, 28359 Bremen,
Germany

Editor:
Prof. Dr. Lars Hornuf
Phone: +49(0)421 218 66820
E-mail: hornuf@[Link]

[Link]
paper
This working paper will appear in L. Hornuf (Ed.), Diginomics Research Perspectives: The Role
of Digitalization in Business and Society. Cham: Springer International Publishing.

Digital Transformation of Maritime Supply Chains Focusing on

Ocean Shipping, Port Management and Hinterland Connection

Hans-Dietrich Haasis1 and Hapsatou2

Abstract For many years, shipping companies, terminal operators, port industry
actors and logistics service providers have been successfully engaged in innovat-
ing their assets, processes and business activities. The best-known key innovation
is the introduction of the standardized container. This innovation has been the
basis for other innovations such as supply chain management, just-in-time
delivery, port integration, ship size development and linked hinterland
connections. The business world is abuzz with talk about automation, self-control,
cloud logistics, electrification, green processes and dematerialization. However,
the most important key innovation now and for the foreseeable future is related to
digitalization and digital transformation of business activities. Digital transfor-
mation is widely understood as the process of implementing digital technologies
and supporting capabilities to create digital business models. In this context, a
rethinking of previous approaches to communication, coordination and
cooperation between stakeholders along the supply chain is appropriate and
necessary. The purpose of the present chapter is to reflect the opportunities and
challenges related to this digital transformation, focusing on ocean shipping, port
management and hinterland connectivity. This chapter aims to identify and char-
acterize expectations, opportunities and peculiarities of this transformation, and to
sketch a picture of the future. Particular attention is given to the influence of
digital gaps, cultural differences and the power of data.

9.1 Innovation in Maritime Business and Transportation

The maritime economy and the transport industry have always been an
innovative economic sector. For over half a century, shipping companies, terminal
operators, port industry actors and logistics service providers have been success-
fully engaged in innovating their assets, processes and business activities. The
industry has thus shown its innovative potential for change and adaptation and its
ability to react to new market and technological conditions (Buer et al., 2019;
Heilig et al., 2020).
Here, innovations are understood, as usual, to be innovations and changes in the
company through the application of new ideas and techniques. In business
1
Hans-Dietrich Haasis, Universität Bremen, Chair in Maritime Business and Logistics, Bremen, Germany, e-
mail: haasis@[Link]
2
Hapsatou, Universität Bremen, Chair in Maritime Business and Logistics, Bremen, Germany, and Universi-
té de Ngaoundéré, Cameroon, e-mail: hapsatou@[Link]
consulting, innovations are generally understood to mean the introduction of new
or significantly improved techniques, products, services, processes, or
organizational principles.
Well-known innovations in logistics and transport include the pull principle and
just-in-time delivery (both introduced by Taiichi Ohno as core aspects of the
Toyota Production System), and the concept of anticipatory shipping (developed
by Amazon) which uses data to predict the shopping behavior of customers and to
automatically send them the corresponding products. The best-known and proba-
bly the most visible innovation has been the introduction of the standardized con-
tainer by Malcolm McLean, considered the “father of containerization.” It is
thanks to his personal commitment and capital that the container established itself
worldwide as a standardized transport container in the middle of the twentieth
century. The container is becoming the engine of globalization and revolutioniz-
ing the world economy (Tran et al., 2017; Tran & Haasis, 2015). In 2004, McLean
was inducted into the Logistics Hall of Fame. This innovation can be credited for
further innovations such as supply chain management, just-in-time delivery, port
integration, ship size development and linked hinterland connections.
There has been increasing discussion about automation, self-control, cloud
logistics, electrification, decarbonization, zero-emission processes and
dematerialization. Despite the importance of all these innovations, digitalization
and digital transformation of business activities and processes are considered the
most significant since the introduction of the container. This has consequences for
all business activities and business developments, presenting a wealth of
challenges and opportunities for strategic and operational change management
(Board of Academic Advisers to the Federal Minister of Transport and Digital
Infrastructure, 2018; DHL Trend Research, 2018; Dujak & Sajiter 2019; Federal
Ministry of Transport and Digital Infrastructure, 2019; Lind et al., 2021).
Austrian economist Joseph Schumpeter, the author of “Theory of Economic
Development”, published in 1912, spoke of “creative destruction” and the
replacement of an existing one by something better. This characterization can and
should even be transferred to the current activities in companies in connection
with digitalization and digital transformation.
As known, digital transformation is the process of implementing digital tech-
nologies and supporting capabilities to create digital business models. While digit-
ization can be defined as the action to convert analog information into digital in-
formation, digitalization concerns the changing of tasks and processes in an or-
ganization with the objective of reconfiguration assets to develop new business
models. Digital transformation goes one step further, and can be understood as a
process of adoption and implementation of emerging technologies in all aspects of
operations, with far-reaching implications for systems, from companies to entire
supply chains (Haasis et al., 2015; Heilig et al., 2020; Heilig & Voß, 2017; Jahn
& Saxe, 2017; Lind 2021). Changes through digital transformation include digital
connectivity, cross-company collaboration, changes to business ecosystems, digi-
tal service innovations and the use of platforms as enablers. In this context, a
rethinking of previous approaches to communication, coordination and
cooperation is appropriate and necessary.
With regard to process control management and information management be-
tween partners in maritime supply chains, there is substantial potential for im-
proving efficiencies. Such improvements can be obtained through better coordina-
tion along the maritime driven supply chain, by region-comprehensive cluster-
orientated cooperation between seaports and port industry actors, and by an inno-
vative shifting of control mechanisms into the cloud. To date, the options of mod-
ern information and communication technologies have been considerably un-
derutilized. The reasons are related to high transaction costs and the necessary
change management, as well as to unforeseeable consequences of the transfer of
business data (Board of Academic Advisers to the Federal Minister of Transport
and Digital Infrastructure, 2018; Haasis et al., 2021).
This shows that considering the design and operation of supply chains along in-
ternational or intercontinental freight transport routes will be essential not only for
spatial planning and construction industries. More than ever, it is important to
invest in the provision and use of information, and in the development and as-
sessment of innovative and trustworthy cooperation and business models (Haasis
et al., 2021; Lind et al., 2021).

9.2 Present Developments and Trends

A visionary description of the future of the logistics and transport industry is

provided by the Logistics 2030 Innovation Programme of the German Federal
Ministry of Transport and Digital Infrastructure (2019). Today the industry and its
actors are on a visible path there.
Economic, reliable and secure maritime supply chains are essential for a
functioning national and global economy. Those involved in ocean shipping, port
management and hinterland connection therefore have an essential role in the
sustainable development of the economy and society, highlighting the importance
for them to seize the opportunities of digitalization and digital transformation of
processes and business models.
Efficient and well-developed maritime supply chains are also important for the
international networking of essential production sites with procurement and sales
markets. Their design and expansion aim to ensure economic accessibility for
supply chains, to increase the attractiveness and visibility of the regions along
transport corridors, to increase the reliability, cost-effectiveness and safety of
freight transportation, and to ensure a future-oriented sustainable development of
economic regions (Jahn et al., 2020; Jahn & Saxe, 2017; Kersten et al., 2020).
To support, test and develop innovative solutions for the digitalization of the
maritime supply chain, digital test fields have been established for the German
seaports in the German Bight for some time by the Federal Ministry of Transport
and Digital Infrastructure. Within Europe, such developments can also be found in
the port of Antwerp and the port of Rotterdam, and outside Europe in the port of
Singapore and in the port of Dubai. Capabilities of test fields should be developed
to demonstrate, for example, how port processes can be carried out partially or
fully automatically, how their control can be shifted to the cloud, how traffic and
handling processes can be self-controlled, and how waiting times and congestion
can be avoided.
Platform solutions are also currently being developed and even made available
to make the transfer of data along the maritime supply chains as easy as possible
in the sense of a sharing economy. Examples include the collaboration between
Maersk Line and IBM (see: [Link]) as well as between CMA CGM
and Alibaba (see: [Link]) for the development of platform-
oriented digital supply chain management. For several years now, the funding
programs IHATEC (see: [Link]) of the German
Federal Ministry of Transport and Digital Infrastructure have made a significant
contribution to this development.
Various information and communication systems have been in use in German
seaports for several years. These include systems for the automatic identification
of ships, controlling traffic processes and port telematics; port community
systems; access control systems for security-relevant areas of the port in
accordance with the International Ship and Port Facility Security Code; and
systems for shipment tracking using tracking and tracing for containers (Buer et
al., 2019; Heilig et al., 2020; Heilig & Voß, 2017; Wan, 2021).
However, it is now time to undertake the process of implementing digital tech-
nologies and supporting capabilities to create digital business models. Thus, digi-
talization should focus both on digital infrastructure and on digital services. This
entails more than the introduction of paperless procedures and extends to port
community systems, terminal operating systems and automated procedures, for
example implemented in combination with automated guided vehicles. The time
is ripe for the implementation of “smart” procedures enabled by the Internet of
Things, big data, business analytics, cloud computing and cyber-physical systems.
These smart procedures allow object-to-object communication and decentralized
control of processes.
By the way, this topic is also a high priority goal in China in connection with
the Belt and Road Initiative. The prioritization of digital connectivity through the
integration of the Internet of Things and e-commerce was already put forward in a
white paper prepared by the National Development and Reform Commission in
2015. This policy of Digital Silk Roads was outlined by Lu Wei, the director of
the Cyberspace Administration, at the China–EU Roundtable for Digital Coopera-
tion in 2015, where he announced, “We can build a digital silk road, a silk road in
cyberspace” (Brown, 2017).
In realizing smart procedures and object-to-object communication, it is
interesting to note that many of the associated decision-making processes involve
assignment problems. For these problems, existing operations research solutions
can be applied, for example for the allocation of containers to ports according to
conditions, for the assignment and shifting of services to selected ports, for the
assignment of terminal operations to vessels, for the assignment of hinterland
connections to containers, and for a multi-port and multi-terminal profit allocation
based on transfer payments.
Smart procedures and new digital service innovations relevant to a smart ser-
vice port include the re-direction and re-assignment of vessels to terminals and/or
seaports, berth allocation and quay crane scheduling, container storage and han-
dling in the yard, truck appointment and ramp management, interterminal trans-
portation and empty container management, ship announcement and terminal
preparation, and gate drive-through management (Buer et al., 2019; Fibrianto et
al., 2020; Jahn & Saxe, 2017; Kersten et al., 2020; Lind et al., 2021; Philipp,
2021).
In view of bottleneck situations caused by port operations and hinterland trans-
ports and the associated focus on investments in port development and infrastruc-
ture provision, cooperation between seaports from time to time may already be an
option today, but it will certainly be an option in the future. This may lead to such
advantages as shorter wait times in front of gates and terminals, better usage of
straddle carriers and container yard capacities, and more time-efficient transship-
ment processes. Such competitive cooperation (or “coopetition”) can be supported
by the installation of a web-based digital service and data platform covering the
data exchange between all cooperating seaports (Haasis & Elbert, 2018; Hoshino,
2010; Lind et al., 2021; Notteboom et al., 2009; Philipp, 2021; Stamatovic et al.,
2018). In general, the ports are competitors; however, for providing efficient and
economic digital solutions, the ports could cooperate on a digital level. Areas with
potential for digital service innovations based on collaborative decision-making
include yard and container lot management, ship announcement after re-direction
and terminal preparation, gate drive-through management, and flexible and condi-
tional supply chain management. It should be kept in mind, however, that prob-
lems could arise in combination with dedicated terminals, loading plans, customs
processes, container fumigation, or the assignment of trucks (Board of Academic
Advisers to the Federal Minister of Transport and Digital Infrastructure, 2018).
Artificial intelligence will also play an important role in transforming processes
related to ocean shipping and port management. The development of a “smart
ship” (a fully digitized, autonomous ship without a crew) is one of the major
goals, with a prominent example being the container ship Yara Birkeland, with a
capacity of 120 TEU, launched in 2020 (see: [Link]).

9.3 Future Studies and Vision on Digital Maritime Supply Chains

One vision for digital maritime supply chains, ports and hinterland connections is
the Silicon Economy Logistics Ecosystem proposed and headed by the Fraunhofer
Institute IML in Dortmund (see: [Link]). According to the man-
aging director of the IML, Michael ten Hompel, the philosophy behind this eco-
system and the related logistics and industrial value creation is characterized by
the following issues: orchestrate instead of producing; together instead of alone:
collaboration und coopetition; share instead of controlling: sharing-economy;
agile instead of pipeline: platform economy; ecosystems instead of hierarchy:
crowds und communities; and open instead of proprietary: open source, open in-
novation.
However, the question remains how the individual parts of the ecosystem might
fit together. Examples of parts or services of this ecosystem include: automated
ETA forecast with artificial intelligence, digitized pallet exchange, electronic bill
of lading, e-navigation and emulation control, digital customs clearance using
blockchain, and smart contracting for import and export processes (Chaising &
Haasis, 2021; Heilig et al., 2020; Jahn et al., 2020; Jahn & Saxe, 2017; Kreeb &
Haasis, 2017; Lind et al., 2021).
Potential solutions might include a container ship deciding autonomously the
best terminal and berth for container transshipment, or a vessel moored at a quay
independently controlling the terminal operations for its containers. Or a retailer
might control the transshipment of requested containers through hinterland trans-
portation to the demanding shop based on the specified demand of customer
products. The container itself might even self-controls some of its operations on
the container yard.
Future cloud-based applications may be operated on a digital web-based service
platform across locations, upgraded on the basis of port community systems and
terminal operating systems. The platform could have the characteristics of an es-
sential facility. The related process model could be developed further towards a
port-as-a-service model and the port than can be called a smart service port
(Board of Academic Advisers to the Federal Minister of Transport and Digital
Infrastructure, 2018; General Assembly of Terminal Industry Committee 4.0,
2021). For example, GAIA-X can be seen as a platform for the use case of supply
chain collaboration, mainly for the automobile industry and for mobility (see:
[Link]). It represents the next generation of data infrastruc-
ture for Europe.
Automation is already a current development, for example in selected terminals
in the seaports of Hamburg, Busan, and Dubai. Visions of a future “seaport 4.0”
can be seen in the Next Generation Port 2030 in Singapore or the well-known
TradeLens initiative of Maersk and IBM based on a blockchain-enabled digital
shipping platform. Based on the familiar principle of the landlord model, the digi-
tal platform could be provided as standardized public infrastructure, and the ser-
vice applications could reflect that of customer-orientated private suprastructures.
Then, algorithms and new data-driven applications for berth allocation, container
yard operations, storage management and crane scheduling policies can be shifted
towards cloud solutions. Of course, similar considerations can be made for freight
villages and, in general, for logistics hubs. In the future, services could be offered
by new internet enterprises powered by data sources (Haasis et al., 2015; Haasis et
al., 2021; Jahn & Saxe, 2017; Lind et al., 2021).
 To understand what is likely to continue and what could plausibly change is
topic of the scientific research field of future studies. In this context,
considerations can be made as to how digital service innovations, new business
models and cooperation arrangements can be identified and deliberated.
Such considerations have been made for the aforementioned seaport of Singa-
pore, which will feature a maritime single window, automated terminal, automat-
ed quay and yard cranes, automated guided vehicles, automated truck pilots, au-
tonomous ships, e-navigation, a vessel traffic management system, unmanned
aerial vehicle, and just-in-time planning and coordination systems. The port, lo-
cated in Tuas in Singapore and operated by PSA International, is expected to be
completed by 2040, with a total capacity of 65 million TEU. Construction com-
menced in 2019.
Blockchain technology is emerging from its first applications in cryptocurrency
and is now likely to have significant impact across almost all industries (DHL
Trend Research, 2018; Dujak & Sajter, 2019; Lind et al., 2021; Wan, 2021). In
the context of logistics and ocean shipping, many projects are in progress apply-
ing blockchain technology to supply chain efficiency, security and transparency,
as well as the handling of administrative processes. For data transfer along the
maritime supply chain, as well, scientists and business experts are increasingly
focusing on developing blockchain solutions.
For example, in 2020 Alibaba joined the International Port Community Systems
Association’s blockchain bill of lading initiative (see: [Link]). This pro-
ject aims to standardize blockchain applications in logistics and e-commerce.
Alibaba, LOGINK and IPCSA have created a working group to elaborate innova-
tive digital logistics solutions. LOGINK is China’s information network for shar-
ing logistics data. COSCO shipping has signed a deal with Ant Group and Aliba-
ba Group to examine applications of the Ant blockchain technology within the
global shipping industry.
Of course, these developments will have consequences for the employment sit-
uation in maritime business, in seaports and terminal operators as well as logistics
companies. Frey and Osborne (2013) have found that most workers in transporta-
tion and logistics occupations, together with quite a number of office and adminis-
trative support workers, are likely to be displaced by automation and digital solu-
tions. In line with technological developments, more and more transportation and
logistics processes are becoming automated and self-controlled. Algorithms for
big data analytics are also rapidly entering domains reliant upon storing or access-
ing information (Frey & Osborne, 2013). However, this can also be a great oppor-
tunity to counteract the shortage of skilled workers in certain areas of activity.
Whatever the future may hold, there is no doubt that there will be an impact on
both employment prospects and employment requirements – and impact for which
not just companies in the shipping and logistics sector but also chambers of com-
merce should be prepared.
9.4 Digital Divide and Decision Culture

The development in the economy towards more digitalization and more digital
transformation is encountering at least two issues worldwide: the digital divide
and decision culture. Whether these factors are taken into account will determine
the extent to which the gap between industrialized and developing countries
continues to grow or can be closed. The ICT Development Index of the
International Telecommunication Union clearly shows the differences between
countries in terms of the availability, utilization and further development of
modern information and communication technologies (see: [Link]). The
question remains how to handle the digital divide between companies and be-
tween regions. Therefore, related market consequences for international maritime
supply chains and logistics hubs such as seaports and freight villages must be ob-
served, analyzed, and challenged (Haasis et al., 2021). We must also decide about
the extent of external web-based control. This is a thrilling and challenging topic
that should be addressed in the context of the ethics of logistics.
The decision-making behavior of the actors involved in supply chains is largely
shaped by their social, political and cultural dispositions (Baumann et al., 2013;
Hofstede et al., 2010). This has an impact on the willingness and scope of a digital
transformation of processes, as well as the success of digitalization measures. Dif-
ferent cultural practices can have an impact on the design and control of logistics
chains and their impacts on trade and social coexistence. The implementation and
operation of maritime supply chains must therefore consider decision-makers and
logistics service people with different cultural backgrounds. By the way, the indi-
cators used for determining the Logistics Performance Index, a benchmarking tool
published by the World Bank (Arvis et al., 2018), are largely dependent on peo-
ple’s decisions. This is exemplified in the widely recognized and accepted consid-
eration of public holidays. But it should also be noted that in some regions, con-
tracts are just a general commitment to do business together and are less meaning-
ful than personal relationships between individuals. Or if you think there is a
standard service contract with a warehouse service provider, which however con-
tains a “change in circumstances” clause, this essentially means that the contract
is not legally binding (Fawcett et al., 2004; Smyrlis, 2004).
To barriers to ensuring time-efficient and reliable processes are not limited to
different languages, time zones, and measurement units, but also include behavior
patterns and contextual interpretations. In the implementation of logistics infor-
mation systems and decision support tools, it is not uncommon, mainly in devel-
oping countries, to hear something like: “We were used to work without pressure
and postponing some tasks for later because the system was not synchronized.
Everyone was working for themselves without pressure. However, with this syn-
chronized system, work must be always done instantaneously so that operations
can take place on time. As a result, we feel that we are under pressure from the
system and that we are no longer acting according to our own free will, but that
we are subject to the system.” This statement highlights that cultural aspects must
be considered as part of maritime supply chain decisions to avoid misunderstand-
ing and miscommunication, which is known to increase uncertainty and risk and
therefore costs, and can lead to miscalculation in supply chain decisions (Bau-
mann et al., 2013; Haasis et al., 2021).
Heterogeneity in cultural backgrounds may thus influence the efficient and reli-
able execution of logistics processes, as well as decisions on how these processes
may be digitalized. On the other hand, these backgrounds may result in the trans-
fer of ideas, experiences and knowledge between the regions and people along the
international maritime supply chains, as has happened in the past. Thus, in addi-
tion to focusing on the supply chains of freight and goods and the corresponding
digitalization and digital transformation, it is also enhancing and worthwhile to
consider the cultural chain of ideas and knowledge to increase the understanding
and appreciation among decision makers and others who are communicating, co-
operating and working together (Haasis et al., 2021).

9.5 Power of Data and Consequences for Business Models

As discussed above, in future, maritime and logistics services could be offered

by new internet enterprises powered by data sources and by digital control of pro-
cesses. Data and process owners of today may be substituted by tomorrow's un-
known owners. Thus, it is not only a question for example a member of the mari-
time blockchain community of whether to be or not to be. The questions are who
will provide the digital business models on demand in the future, who has the data
and process power, and how to handle the unevenly distributed access to data and
thus the unevenly distributed power in competition between companies and
between regions. From a conventional point of view, this could be the communi-
cations provider, the data provider, the automobile industry, the energy supply
company, the city administration, the logistics infrastructure provider, the ocean
shipping company, or the logistics service provider (Brinker & Haasis, 2020; Jahn
et al., 2020). However, it could also be that logistics service providers and
terminal operators will be downgraded to puppet figures in the future. Therefore,
in terms of an early warning system, digitalization-related market consequences
for seaports and the other actors in the maritime supply chains must be analyzed
and challenged in good time.
As early as 1976 Joseph Weizenbaum, who has been awarded an honorary
doctorate from the University of Bremen in 1998 in recognition of his services to
computer science and the social responsibility of computer scientists, published
his famous book “Computer Power and Human Reason: From Judgement to Cal-
culation”, in which he criticized the power of computers and the “impotence of
reason” (Weizenbaum, 1976). Weizenbaum warned against the wrong use of
information and communication technology. It may be prudent to extend this
wisdom to the power of digital processes and the power of data.
 The consequences for business models are clear. Due to the power of digital
processes and data, the conventional differentiation – 1PL for cargo owners focus-
ing on manufacturing or retailing, 2PL for carriers and forwarders providing
transportation as a service, 3PL for logistics service providers providing logistics
(mainly contract logistics) as a service, and 4PL for lead logistics providers and
consultants focusing on supply chain management – must be extended to 5PL for
big data driven logistics providers focusing on demand chain management, and
6PL for digital internet logistics providers realized by cloud logistics. Ultimately,
the control and decision-making power can and will be shifted towards software
on the internet that is available 24 hours a day, every day, regardless of weekends
and holidays.
As discussed above, this is an essential development because many decisions in
ocean shipping, port management and hinterland transportation are assignment
problems for which easy-to-use and powerful algorithms have been available for
years. Used with the right data, these algorithms can be used within software sys-
tems provided on demand on the internet. This also highlights the need for and
importance of digital data sharing. Such transformation will create opportunities
for data analytics, digital innovations to support transport processes, and learning
systems that enable better decision-making. This will give rise to new startups
within the market of shared logistics, as seen in the case of Cargonexx or Sennder.
On a global scale, interoperability between the software and decision systems is
necessary. It is therefore important to develop, test and shape frameworks, for
example the Silicon Economy Logistics Ecosystem designed by Fraunhofer IML.
Platform technologies characterized by sharing principles, interoperability, data
protection and innovative digital services will play an important role in such eco-
systems. For example, the platform DataPorts may provide a trusted and secure
environment for all actors operating in the diverse maritime supply chains in-
volved in European seaports (see: [Link]). Using this data platform
across connected digital ports would support the transition to cognitive ports,
which will open the way to new capabilities: real-time control of operations,
streamlined decision-making, accurate prediction of events and situations, and
prescriptive analytics. Examples include the aforementioned blockchain-enabled
digital shipping platform TradeLens, jointly developed by A. P. Moller–Maersk
and IBM, and a similar development realized by COSCO Shipping, Alibaba, and
the Ant Group.
Of course, this implies increased shifting of power in maritime driven supply
chains. Needless to say, monopolistic platforms put competing market players and
business models at risk, with such consequences as loss of data sovereignty and
loss of direct customer relationships, as well as unequal distribution of process
and market power. For this reason, the European Commission is currently
discussing adoption of the Digital Markets Act, a legislative proposal aimed at
ensuring competition in digital markets.
9.6 Synopsis and Conclusions

The maritime industry and the logistics community have shown their innovative
potential for change and adaptation and an ability to react to new market and
technological conditions. Now and in the near future, digitalization and digital
transformation of maritime supply chains will be the most powerful and challeng-
ing forces of innovation. The purpose of this chapter has been to reflect the oppor-
tunities and challenges related to this digital transformation, with a focus on ocean
shipping, port management and hinterland connectivity.
Knowing that world trade flows are interconnected and changeable, the logis-
tics industry must ensure distributed production and supply in a dynamic envi-
ronment. The aim here has been to identify and characterize expectations, oppor-
tunities and peculiarities, as well as to sketch a picture of the future. Particular
attention has been given to the influence of digital gaps, cultural differences and
the power of data.
Access to digital processes, innovations and communication platforms is essen-
tial to increase the efficiency and reliability of logistics processes and supply
chains worldwide, so now is the time to act with foresight. It is necessary to make
innovation and development visible and transparent, to learn from each other, and
to take people and employees with them on this journey. In this context, major
changes are to be considered and established norms to be questioned. It will also
be important to maintain vigilance toward monopolistic tendencies.
As this chapter points out, access to digital processes varies from company to
company and from country to country, and it remains to be seen who will provide
the digital business models and who possesses the data power. A stronger focus
on the people and their cultural differences is thus essential to supporting the im-
provement of the logistics performance of companies and regions and their corre-
sponding successful digitalization and digital transformation.
In the context of maritime supply chains, a robust discussion of digitalization
and digital transformation may motivate not only investment in infrastructure and
technology but also investment in knowledge, education, training, communication
and understanding. As Hajo Schumacher implores in the column Netzentdecker, it
is essential that we expand the social market economy to include the ecological
and the digital, and that we interlink modern technology and educational ideals.
The focus could be on the Bhutan strategy. From now on, every political decision
should be appraised by asking: Is the well-being of the individual and the
community being promoted? (Schumacher, 2020). Perhaps now is the time to
think more deeply about an ethics of logistics.
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