'Brave new world?' - Rising to the digital challenge in shipping

Joint TT Club & McKinsey report concludes that the future is digital'Brave new world

?' examines two potential future digital scenarios, one of which is termed

'Digital reinvention'

Industry experts, looking at the future for the container transport industry over the next 25 years, see the possibility of traditional supply chain service providers being significantly challenged. Increasingly digitally enabled services, which can directly control the flow of goods from factory to consumer, will become progressively more influential.

Indeed, these 'Digital natives', that apply technology to previously unsolvable challenges (as has been seen with Amazon and Alibaba), as well as 'scrappy tech start ups', fast-moving newcomers assuming an integrator role, could transform and re-shape the container transport industry.

In their 'Brave new world? - Container transport in 2043' report, leading international freight transport insurer TT Club, in conjunction with global management consulting firm McKinsey, have looked at the future of containerised trade, how value can be created and who the 'winners' could be within the industry by 2043.

Having carefully garnered the perceptions of leading figures from a cross section of the transport industry and beyond, the report highlights that an efficient containerised supply chain, acting like a conveyor belt from factory to consumer, could be one of the significant changes in the future outlook.

It acknowledges the well-known paradox of cargo owners and end-consumers enjoying lower costs, while industry players struggle to share in the value-creation and highlights six potential sources of value creation.

Six sources of value creation