I recently read a joint announcement that the largest ocean carriers confirmed formation of a global industry association of ocean shipping lines. The intent is to create free, open-source information technology to decrease friction in the industry and increase transparency, according to the announcement. The first step is to write common data standards to increase interoperability between carriers and customers. I even read some very interesting statements around ‘digital is key’, ‘wave of innovation technology development in shipping’, and ‘challenges of the future can be tackled with a common approach’. Seems like there is a recognition for a ‘need to develop something that is common, open and done in the framework of a neutral and non-profit association’.
While I welcome the initiative, I am skeptical.
Initiatives around data standards are vague; as a shipper, I want to know more specifics and a body to drive “common IT standards” is non-specific. Today carriers can’t even agree on a common B/L; and we are talking about specific data standards. Today we have varying degrees of data quality on simple shipping statuses and we are talking interoperability. If your quality of data is bad, how can we trust you to harmonize it and create data standards.
Many industries have tried interoperability through standardization. While the most successful examples maybe those of OAGI, 1SYNC, Health Care Standards (ISA), transmission standards like AS2 – many of them have run into challenges in a non-profit model. Many have failed to deliver consensus on any one set of standards. Those that exist, do so, simply as a platform for showcasing participation in the “united nations” (everyone goes there, talks, agrees to disagree and then executes their own strategy). Remember CIDX (chemical industry data exchange)? Well they are gone. PIDX for the energy industry seems to be around although I am not sure how effective they are. There have been far too many interoperable standards in the marketplace today. The effectiveness of these standards to create significant efficiencies and competitive advantages within vertical industries is questionable. And across industry sectors, they complicate matters even more for trading partners who need to collaborate.
Data interoperability by definition addresses the ability of systems and services that create, exchange and consume data to have clear, shared expectations for the contents, context and meaning of that data. The reality is that software providers and cloud based platforms exist to drive normalization and drive up their value from intermediation. So even if by chance, all the carriers were able to solve anti-trust issues of competing lines working together or kept commercial and operational terms aside; the ability to retrofit divergent systems to work with interoperable standards expected from organizations not in the business of building technology is a big ask.
But even before that, I would love to see all the carriers working together sitting in one room and agreeing to the basics of shipping. When I tried doing that at a recent carrier summit for our own organization, I could see executives leery of opening up and discussing issues pertaining to our organization. So it would be interesting to see how they all work together for the benefit of the BCO community and the shipping industry in general. If they succeed, we will all benefit.
But for now, I will wait and watch.
Supply Chain Boy 
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