Interview 14 January 2021
“Bolder Use of the Opportunities Offered by Digitization”

Lutz Kretschmann heads the Marine Operations Management team at the Fraunhofer Center for Maritime Logistics and Services (CML) in Hamburg. In his opinion, the maritime industry is too hesitant in their approach to future-oriented technologies, like data analysis, machine learning, and artificial intelligence. A new white paper “Ship Operation 4.0”, published by CML, hopes to facilitate the embrace of digital ship’s operations by shipping companies, dockyards, and suppliers.

You co-authored the “Ship Operation 4.0” white paper, which has attracted a great deal of current interest in the maritime sector. What were your reasons for writing this?

Lutz Kretschmann: The core question for us was how the maritime industry can use the new opportunities contained in Industry 4.0 for ship operations. This specifically centers around the data from the operating phase of a ship. We published the white paper to describe how ship operations can be run more efficiently based on this data. We sketched out five areas, which in our opinion offer the best opportunities for various parties in the maritime sector to actively engage with the topic, “Ship Operation 4.0”: these include navigation and ship’s command, systems operation on board, new concepts in maintenance, administration and management processes, and comprehensive ship and fleet management.

What role does the Fraunhofer CML play in digitalization in this sector?

Kretschmann: We provide research services, which support the enterprises in the maritime economy in developing and using new solutions, for example, in applying key technologies like machine learning and artificial intelligence. In short, we point out the opportunities offered by digitalization and contribute to their implementation.

You emphasize that data only have value if suitable information can be gained from them. Would you please explain this statement.

Kretschmann: Data, in and of itself, does not make us smarter. We have to be able to derive information from the data, which then serves as a basis for intelligent decisions. In virtually all data-based issues, the ability to find solutions functions better if there are more available data. Evaluating data from 100 ships brings greater insights than the same exercise with only ten ships. We currently have numerous methods and algorithms which are capable of identifying patterns in data – and this simply functions better if there are more and different examples.

Which data-based topics promise the greatest level of savings in ship operations?

Kretschmann: That is difficult to reduce to individual aspects. In the white paper, we highlight potentials for improving certain operating conditions – up to complete fleet optimization. However, this is not merely just a question of fuel consumption, but also making overall operations more economical and also safer.

What does the situation look like for older ships? Can the current fleet be fitted for digitalization?

Kretschmann: There are some projects, in which sensors are retrofitted in order to modernize ships or equip them for digital operations. However, in the case of ships that are already 20 or 25 years old, the primary concerns are for tangible solutions to operate the ships more efficiently using their available technologies. I’m thinking here, for example, about detecting changes of state, like in condition monitoring. This can facilitate improved scheduling and management of technician assignments – up to appropriate stocking of replacement parts.

Who needs to receive this information in order to make intelligent decisions?

Kretschmann: That question has not yet been sufficiently clarified within the maritime sector. First of all, there is the ship, which generates the data – and those data are then available to those who operate the ship. Which then leads to the question: who would need have access to the data and who could even initiate something with the information concealed therein? Some information is necessary for direct ship operations, and consequently has to be available on board. Specialists on land also need access for long-term analysis and improvements. Unfortunately, reductions in staffing in many shipping companies have also led to a dearth of specialized employees for these tasks.

Does it harm the sector if they are economizing in areas that could contribute the most to cost reductions?

Kretschmann: The rates that have been achieved in the transportation market in recent years are sometimes barely sufficient to cover costs. It is at least comprehensible, when there are considerations about saving costs related to personnel in one of these situations. At the same time, it is a legitimate question: whether we are not simultaneously losing a foundation for grasping the opportunities provided by digitalization. My opinion on this is quite clear: in the time of artificial intelligence and machine learning, human beings continue to play an irreplaceable role – even if these roles may change in many cases.

What do you expect from companies with regards to “Ship Operation 4.0”?

Kretschmann: They should be more open to bold actions to create the preconditions that are necessary to follow digital paths. However, this does not imply blindly setting off in search of adventure. In my experience, a more cautious attitude has dominated the German maritime sector. At the same time, I have observed that many innovations in digital logistics are currently being created, primarily in China, Singapore, and the USA. In this case, I can only wish that there was more willingness to use the opportunities offered by digitalization in a context that encompasses different firms and various actors in the German maritime sector, which would naturally strengthen Germany as a maritime location on the international stage.

Concise Personal Information

Lutz Kretschmann works as a Senior Scientist at the Fraunhofer Center for Maritime Logistics and Services (CML) in Hamburg, where he directs applied research and consulting projects in maritime logistics and shipping. One focus of his work has concerned the digital transformation of the maritime industry, including new data-based business models and the application of machine learning technologies, in order to develop innovative solutions for the maritime sector. Lutz Kretschmann has a doctorate in industrial engineering from the Hamburg University of Technology.

Text: Steffen Friedrich, Global Key Account Manager Marine & Offshore at WAGO Kontakttechnik GmbH & Co. KG
Photos: Thorsten Sienk

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Interview 14 January 2021 “Bolder Use of the Opportunities Offered by Digitization”