Integration of Artificial Intelligence

The rapid advent of Artificial Intelligence (AI)  , its integration and grudging acceptance in the Maritime Industry will have a wide impact. The maritime sector  has traditionally been labour intensive. In the face of unionized labour seaports across the globe are finding it challenging to introduce AI despite the viability of AI in the maritime industry. The speed and economic feasibility of introducing AI in a country’s economy are dependent on the population size , extent of familiarity of the work force with AI ,alternative livelihood prospects and the willingness of all players to conform to growing digital trends. In countries with low or negative birth rates AI is a welcome entrant into bulk cargo, container and freight logistics. Not so the case with populous countries or even large coastal cities

The likely adoption of amendments to the Facilitation Convention under the umbrella of the International Maritime Organization for a mandatory single Customs window for data exchange in ports synching with EU ‘s Single Window legally sanctioned requirement means the time is near for ports worldwide to go entirely digital .Such digital developments should sound an alarm for Gulf ports.

Gulf Ports and AI

Seaports located along busy trade routes of Europe, United States of America and the Gulf region would utilize AI to the fullest of their respective capacities. Shipping lines are introducing electronic freight and billing.  Even if a country has a stable economy the social issue is whether the seaport can afford to lay off employees while introducing AI. Advanced containerization means more remotely controlled cranes and loading trucks.Arab countries like Qatar, United Arab Emirates, Oman and Kingdom of Saudi Arabia still have low  population whose living standards are subsidised through oil revenues. This will not be the case in the future unless these countries diversify their economies. India ,Bangladesh, Indonesia and Malaysia are beset with economic inequalities and laying off employees in the maritime sector and replacing core functions with AI may lead to massive unemployment . Countries like Norway, Holland and Denmark would be in an advantageous position since they can afford the transition of digitizing processes of data gathering into a single platform .France ,Italy and Spain on the other hand have relatively larger populations with a continuous influx of refugees who upon assimilation need to be accommodated into port related employment. India ,with its much publicised digital logistic Sagarmala initiative , is in a quandary as despite its high literacy rates and external image and glitter and claims of bypassing Germany in terms of GDP laying off employees may have political repercussions.The developing world may be advised to proceed with caution in the drive to digitalise port and shipping functions.

 

The  contributor Razeen Ahmed has a Bachelor of Science in Business and Management from London School of Economics and is involved in research on Finance and Energy.