The long-standing issue of container shipping’s “hurry-up-and-wait” scenario continues to plague the industry, leading to inefficiencies, higher CO2 emissions, and mounting costs. In this all-too-familiar situation, box ships race to catch up on schedules by increasing speed, only to find themselves anchored outside their destination ports, waiting for a berth to become available. Estimates suggest that this inefficient practice increases container shipping’s CO2 emissions by up to 15%, a staggering figure that adds to the industry’s carbon footprint and hinders global decarbonisation efforts.

While technology has long been touted as the solution to this problem, the reality is that neither VSAT broadband, digitalisation, machine learning, nor AI have been able to make “smart-steaming” a widespread practice. Despite years of technological advancements, the solution to smarter shipping – essentially adjusting speeds based on real-time berth availability – could be as simple as a phone call. Yet, the practice remains stubbornly elusive.

This issue persists in part because of the high demurrage charges carriers can levy on shippers, creating a perverse incentive for shipping lines to perpetuate the “hurry-up-and-wait” behaviour. As Napa CEO Mikko Kuosa explains, “Often, demurrage can be more profitable than doing normal business.” This leads to a misalignment of priorities, where the short-term financial gains from demurrage charges outweigh the long-term benefits of improved fuel efficiency and lower emissions.

Despite a growing recognition of the problem, industry efforts over the past decade to address this inefficiency have fallen short. The conflicting interests embedded in shipping contracts have thwarted progress, with incentives driving behaviour that runs counter to sustainability goals. In fact, queues of more than a dozen vessels waiting at major global ports have become routine, exacerbating the problem.

However, there is hope on the horizon. Finland’s Napa has launched its latest initiative, Napa Studio, bringing together a wide range of industry stakeholders including shipyards, owners, classification societies, and technology providers, as well as legal and commercial entities. This collaborative approach aims to create a solution that neutralises the conflicting interests embedded in contracts, realigning the shipping industry towards decarbonisation.

Kuosa emphasises that the key to solving this issue lies in sharing the benefits across the entire supply chain: “There needs to be a solution that neutralises these conflicting interests, so that shipping, from a contractual point of view, would be aligned toward this decarbonisation market.”

At the heart of this solution is the need for real-time supply chain visibility software that provides accurate data insights to help Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) make critical business decisions. By leveraging real-time data, stakeholders can optimise operations, avoid costly delays, and reduce their carbon footprint – moving towards more sustainable, efficient, and resilient supply chains.

Ultimately, smart shipping isn’t just about technology; it’s about aligning the interests of all players in the supply chain, and ensuring that decisions are driven by data that enable BCOs and LSPs to counteract potential disruptions. With the right tools in place, the shipping industry can break free from the “hurry-up-and-wait” cycle, reduce emissions, and pave the way for a more sustainable future.