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June 11 2018

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36 The Journal of Commerce | June 11 2018 Container Shipping Innovation Special Report and he said it is an area where carri- ers can differentiate their services from one another. In a survey to poll what Hapag-Lloyd's customers want- ed, Habben Jansen said it was no surprise to learn that what shippers would like to see was more clarity in what would be provided by the carrier and for what price. "They also want to see what we will offer, and will we deliver on what we promised. We are not fully integrated, and we don't do every- thing digital. Digital billing today is only 30 percent of your business, and there is still a fair chunk of that where we still produce paper." Paul Pessutti, senior vice pres- ident, travel and transportation business unit at SAP, said what is urgently needed in the container shipping business is change man- agement. "The technology is there to make the improvements, but the liner shipping business needs to modernize and get on the curve with technology," he said. "We see that a lot of it is the reluctance to change within the industry to remap the business processes and implement the software providers, and engineers. The interest from the industry is like pulling teeth, and yet there are billions to be saved for everybody," Montrone said. "We want to be more efficient, faster to market for customers; we want to pay better, we want to be paid faster by carriers; we don't want to have to take an invoice and print it three times like everyone does. But we keep on talking about supply and demand. Is it 3 percent up or 5 percent down? What's the rate on the trans-Pacific? What's the long-time rate? That's all we want to talk about." The need to give customers more to focus on than just price is a drum Hapag-Lloyd CEO Rolf Habben Jan- sen has been beating for some time, tives said at a Hamburg conference in May, and it stems from a lack of change management across the industry that is frustrating moves to digitalize key processes and focus on adding value. Paolo Montrone, senior vice president and head of global trade for Kuehne + Nagel (K+N), said container shipping and the supply chain is still contracting the way it did 30 years ago. "Nothing has changed. Luckily Microsoft created Excel or we would still be sending ourselves pieces of documents," he told the Global Liner Shipping conference in Hamburg. He gave an example. "One of the key issues we have that is affecting every player that has transportation as part of their business is how we manage invoicing and contracting flow. In 2017, there were about 180 million TEU moved, 1.2 billion freight invoices issued. We did a lot of analysis of our own and used Drewry analysis, and the calculation we found was that better managing this process properly would save $30 billion. "But no one in the industry is interested in this. In a year-and-a- half at K+N, we have eight people full time on this, plus assistants, "The interest from the industry is like pulling teeth, and yet there are billions to be saved for everybody."

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