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To kick off IP Week 2021, Reuters Events and Vortexa were proud to partner on the event 'Driving Freight Forward: A digital analytics roadmapto growing the freight markets of the future' on 22 February 2021.
In participation with leading voices in the freight industry from BIMCO and Teekay Tankers, we discussed the current freight market outlook and how advanced analytics are changing the landscape for charterers, shipbrokers and ship owners alike, especially considering market volatility and shifting dynamics.
Panelists included Vortexa Senior Freight Analyst, Arthur Richier, BIMCO Chief Shipping Analyst, Peter Sand, and Teekay Director of Chartering and Freight Trading, Mikkel Seidelin.
Key topics covered:
Global markets update and the outlook for freight in 2021.
Technology application (IoT/AML/Cloud/Digitalization/Security) to identify and maximise freight opportunities.
The role of advanced analytics and artificial intelligence in identifying emerging strategic opportunities first.
Vortexa takeaways from the session:
A major challenge for the freight sector today is the fact that the world is continuing to draw upon the oil stocks - both offshore and onshore - that were built during the start of the pandemic nearly a year ago. This is taking place instead of employing tankers for the transport of those same amounts along trade routes. As such it feeds into the continued weakness of earnings for ship owners and a low cost of freight for charterers.
Freight market participants are seeing the democratisation of advanced analytics and most importantly, the ability to interpret data in ways that can be translated more easily into supporting decision-making. Analytics can help to identify and maximise opportunities, as well as continuing to be driven by the desire to improve efficiencies and the bottom-line. This is especially true for ship owners.
The decarbonisation of the freight industry, hailed as the industry's greatest challenge, has been accelerated by the pandemic, amid the ongoing focus on tackling climate change. The freight markets of the future are expected to look very different - firstly from a fuel mix point-of-view, which will involve a variety of options, compared with today's mix which is overwhelmingly fuel oil. Secondly, in terms of cargoes carried, due to the expected reduced share of the market for oil cargoes and an increased share for LNG and hydrogen.
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