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Hyundai Heavy Industries pioneers Smart Ship Solutions

In early July 2017, South Korean shipbuilder Hyundai Heavy Industries (HHI) announced the debut of their proprietary Information and Communications Technology (ICT) system to accelerate internal communications and navigation efficiencies. Its goal is to capitalise on economic opportunities, sophisticated access to modern navigation technologies, and vessel management and engineering. Far from a commitment to efficiency and safety, connecting vessels ashore appears to be a new milestone in the firm’s pursuit of an Integrated Smart Ship Solution (ISSS) and effective management of stakeholders.

To extend continuity and customer care across the value chain, smart ship solutions go deeper into the management of big data improvements to guarantee uninterrupted, coordinated navigation with increasing availability of fully-functional features onboard, and tested engineering-oriented tools and backups. Through performance, the corporation outlined how ISSS provides a wide range of ship information to operators, including optimal navigation routes and navigation speed along with a slope status of the front and back hull to minimise the resistance a ship encounters on voyage.

Proactive monitoring, along with action plans are also key improvements when it comes to stakeholder demands and engineering methods. It is a clear response to the different voices found within the industry, from port operators who insist on programmed cooperation and productivity at port, to meticulous management of transparency and vessel history from insurers. From an engineering perspective, ISSS allows for safer and more efficient management of vessels by working on energy data and keeping track of powered engines and other equipment for optimised navigation.

According to HHI, the solution, after completing regular field testing and applied in a 6,500 pure car/truck carriers (PCTC) and a 250,000 deadweight tonnage of very large ore carriers (DWT VLOC), is expected to reduce annual operating costs by 6 percent, which, ultimately, would increase profit margins and expertise. At the same time, ISSS addresses other challenges already found in both the maritime industry and business infrastructure, namely; over-capacity, inefficient costs of navigation, sustainable and safety needs, as well as IoT/digital/satellite technologies that tackle dated business models, and excruciating, traditional ways of ship-to-shore communications.

It is predicted that demand for smart ships will have a positive impact on the maritime industry as operational and safety needs are pushing the agenda all the way to the top for highly competitive shipbuilders. Coupled with research and predictions, the International Maritime Organization (IMO) will also introduce e-Navigation as a component that provides excellent organisation of data for commercial ships by 2019, which assists the progress of meaningful stakeholder relationships and pushes the demand for smart ships even further.

Beyond the potentiality that smart ships have on performance, there is continuous work and evolution that has led HHI to a competitive level of expertise. In 2011, the shipbuilder launched a cutting-edge version of its smart ship solutions – “a first of its kind” system – and has since implemented the technology on approximately 300 delivered ships as of 2017. Combining unparalleled expertise and internal capabilities, HHI acquired solid experience by partnering with Accenture – a global management consulting, technology services, and outsourcing company – to create an innovative system designed to reach major competitiveness with real-time data.

This collaboration has not only allowed HHI to master the arts of the IoT and built-in technologies, but also to optimise navigation and operational savings while moving successfully from the manufacturing field to services. “ HHI’s technology seeks to align with delivering the key benefits we believe the maritime industry will most benefit from through the adoption of connected, digital and autonomous technologies as the next generation of shipping embraces digitalisation,” said Luis Benito, director of Marine and Offshore Innovation, Strategy, and Research for Lloyd’s Register.

Another important milestone took place earlier in May this year, when HHI and Bhari – the National Shipping Company of Saudi Arabia – signed a Memorandum of Understanding (MoU) to strengthen long-lasting relationships and commit to current and future projects. Both parties have agreed that working together is crucial to the design of data-driven initiatives that give the green light to a better decision-making process, generate higher revenues, and achieve customer satisfaction in the transportation industry.

As time goes by HHI has taken a lead in the development of smart shipping solutions for safer navigation and efficient ship routing. HHI has also designed a vessel data model as a foundation platform that will secure the transfer of whole data from sea to shore, delivering multiple, reliable services to ship owners. Perhaps some of these technologies will be supplemented and operated by Middle East owners to enhance its collaborations, or it may be the case that HHI would contemplate a successful move from initial on-ship services to a promising, stakeholder-oriented scenario.

Recently, although HHI has suffered a substantial loss of approximately 12 percent of ship sales in 2015, the company is still ranked first with over USD 24.4 billion worth of vessels on order as of 2016. However, important technology developments along with green and other stakeholder demands are once again re-defining the industry. “According to Clarkson Research, about 6,500 ships are to be ordered globally for the next five years. Considering the global shipbuilding market share attributed to HHI, ISSS is to be installed on approximately 700 ships for the comparable time period,” continued Benito.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4959|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/10/Fotosearch_k27019534-1024x683-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] In early July 2017, South Korean shipbuilder Hyundai Heavy Industries (HHI) announced the debut of their proprietary Information and Communications Technology (ICT) system to accelerate internal communications and navigation efficiencies. Its goal is to capitalise on economic opportunities, sophisticated access to modern navigation technologies, and vessel management and engineering. Far from a commitment to efficiency and safety, connecting vessels ashore appears to be a new milestone in the firm’s pursuit of an Integrated Smart Ship Solution (ISSS) and effective management of stakeholders. To extend continuity and customer care across the value chain, smart ship solutions go deeper into the management of big data improvements to guarantee uninterrupted, coordinated navigation with increasing availability of fully-functional features onboard, and tested engineering-oriented tools and backups. Through performance, the corporation outlined how ISSS provides a wide range of ship information to operators, including optimal navigation routes and navigation speed along with a slope status of the front and back hull to minimise the resistance a ship encounters on voyage. Proactive monitoring, along with action plans are also key improvements when it comes to stakeholder demands and engineering methods. It is a clear response to the different voices found within the industry, from port operators who insist on programmed cooperation and productivity at port, to meticulous management of transparency and vessel history from insurers. From an engineering perspective, ISSS allows for safer and more efficient management of vessels by working on energy data and keeping track of powered engines and other equipment for optimised navigation. According to HHI, the solution, after completing regular field testing and applied in a 6,500 pure car/truck carriers (PCTC) and a 250,000 deadweight tonnage of very large ore carriers (DWT VLOC), is expected to reduce annual operating costs by 6 percent, which, ultimately, would increase profit margins and expertise. At the same time, ISSS addresses other challenges already found in both the maritime industry and business infrastructure, namely; over-capacity, inefficient costs of navigation, sustainable and safety needs, as well as IoT/digital/satellite technologies that tackle dated business models, and excruciating, traditional ways of ship-to-shore communications. It is predicted that demand for smart ships will have a positive impact on the maritime industry as operational and safety needs are pushing the agenda all the way to the top for highly competitive shipbuilders. Coupled with research and predictions, the International Maritime Organization (IMO) will also introduce e-Navigation as a component that provides excellent organisation of data for commercial ships by 2019, which assists the progress of meaningful stakeholder relationships and pushes the demand for smart ships even further. Beyond the potentiality that smart ships have on performance, there is continuous work and evolution that has led HHI to a competitive level of expertise. In 2011, the shipbuilder launched a cutting-edge version of its smart ship solutions – “a first of its kind” system – and has since implemented the technology on approximately 300 delivered ships as of 2017. Combining unparalleled expertise and internal capabilities, HHI acquired solid experience by partnering with Accenture – a global management consulting, technology services, and outsourcing company – to create an innovative system designed to reach major competitiveness with real-time data. This collaboration has not only allowed HHI to master the arts of the IoT and built-in technologies, but also to optimise navigation and operational savings while moving successfully from the manufacturing field to services. “ HHI’s technology seeks to align with delivering the key benefits we believe the maritime industry will most benefit from through the adoption of connected, digital and autonomous technologies as the next generation of shipping embraces digitalisation,” said Luis Benito, director of Marine and Offshore Innovation, Strategy, and Research for Lloyd’s Register. Another important milestone took place earlier in May this year, when HHI and Bhari – the National Shipping Company of Saudi Arabia – signed a Memorandum of Understanding (MoU) to strengthen long-lasting relationships and commit to current and future projects. Both parties have agreed that working together is crucial to the design of data-driven initiatives that give the green light to a better decision-making process, generate higher revenues, and achieve customer satisfaction in the transportation industry. As time goes by HHI has taken a lead in the development of smart shipping solutions for safer navigation and efficient ship routing. HHI has also designed a vessel data model as a foundation platform that will secure the transfer of whole data from sea to shore, delivering multiple, reliable services to ship owners. Perhaps some of these technologies will be supplemented and operated by Middle East owners to enhance its collaborations, or it may be the case that HHI would contemplate a successful move from initial on-ship services to a promising, stakeholder-oriented scenario. Recently, although HHI has suffered a substantial loss of approximately 12 percent of ship sales in 2015, the company is still ranked first with over USD 24.4 billion worth of vessels on order as of 2016. However, important technology developments along with green and other stakeholder demands are once again re-defining the industry. “According to Clarkson Research, about 6,500 ships are to be ordered globally for the next five years. Considering the global shipbuilding market share attributed to HHI, ISSS is to be installed on approximately 700 ships for the comparable time period,” continued Benito. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Maersk Cyber-Attack: A Lesson Learned?

As the shipping industry keeps moving slowly to new forms of technology and digital innovations, criminality has started to make a huge impact on the ocean supply chain. On June 27th, A.P. Moller-Maersk fell victim to a coordinated international cyber-attack, which affected several of its businesses across the world, causing the shutdown of IT systems across its business units against virtual intrusion. The impact of the attack was critically significant not only for the amount of goods being transported on a daily basis, but also for the major disruption it caused on its port-to-port communications and digital applications.

Without a doubt, the recent cyber-attack unraveled key vulnerabilities and plausible negligence given Maersk’s position as the world biggest shipping line and also, operator of 76 ports via its APM Terminals division. The Danish firm reported, “We can confirm that Maersk has been hit as part of a global cyber-attack named Petya on the 27 June, 2017. IT systems are down across multiple sites and select business units…We have contained the issue and are working on a technical recovery plan with key IT-partners and global cyber security agencies”.

It is difficult to ascertain the exact reasons why Maersk fell victim to such a criminal manoeuvre without having a look at its computer systems and IT capabilities. Nonetheless, it does beg the question: how does one of the largest container shipping companies in the world, which beyond doubt, invests huge amounts of money on IT developments, get brutally infected? During a live interview, Vincent Clerc, Maersk Line’s Chief Commercial Officer, explained that while continuous security assessments and further investigations were still in progress, the firm had been focusing on devoting more resources to business continuity and adequate protection for its customers.

As part of its response to the attach, Maersk enabled the use of manual processes and INNTRA to guarantee continuity and deter customers to keep facing disruptions. After a week of backlog and assessments for full transparency, major digital applications and APM Terminals resumed operations and productivity levels reached normality. Yet, as opposed to other insiders who failed to enumerate the causes that made Maersk a clear victim, surveys and industry experts exposed their views on this topic. These views commonly comprise a mixture of technological, human, and digital failings.

In its Crew Connectivity 2015 survey, Futurenautics found that, “Only 12% of crew had received any form of cyber security training. In addition, only 43% of crew were aware of any cyber-safe policy or cyber hygiene guidelines provided by their company for personal web-browsing or the use of removable media (USB memory sticks etc.). Perhaps unsurprisingly, given the above statistics, fully 43% of crew reported that they had sailed on a vessel that had become infected with a virus or malware”.

Phil Tinsley, Manager, Maritime Security at Bimco said, “It is the human element which we believe is the gravest concern. Why? There is unfortunately still a lack of awareness of the potential severity of a malicious cyber security attack on board a ship. Information technology systems and operational technological system protocols are often not fully understood by all ships’ crews. There is potential for an incident to occur through negligence, misuse or even deliberate acts when dealing with on board systems, which are connected”.

Digital innovations are also the newest game changers that are exposing shipping companies to new vulnerabilities. With more than 600 vessels operating in around 130 countries, Maersk created the “Maersk Advanced Analytics Team” in order to improve operational efficiencies, fuel savings, and customer service. Yet, digitalisation absorbs new issues; vessels are increasingly using systems that rely on data usage and analytics that bring a greater risk of unauthorised access or malicious attacks to ships’ systems and networks.

“One of the biggest challenges I see in the shipping and maritime sector is the pace of digitalisation in the industry versus the ever-changing threat landscape. Today a lot of critical functions, commercial and business operations must meet the digitalisation demand and this has forced industries, including the shipping and maritime sector into meeting demands, which potentially changes the way security was built and designed to secure infrastructure, protect data, customers and employees,” said Jens Monrad, Senior Intel Analyst, at FireEye iSight.

The shipping industry is waking up to a new era of technological innovations. Even so, there is an evident lack of maturity, even for the largest shipping firms, to develop a technical checklist of preventive actions that should be followed to avoid potential cyber threats. Transforming obsolete processes and fragmented supply chains into fully protected, integrated systems requires pragmatism and caution to say the least. Lars Jensen, CEO and partner, at SeaIntelligence Consulting, added:

“Many shipping companies wrongfully believe that cyber security has to be expensive. The reality is that often simple, inexpensive, actions will raise security significantly both on the landside and on the vessels. Often it is a matter of ensuring that systems get updated in a timely fashion, business processes are changed slightly, networks are properly configured, security features are tested and users properly trained.”

Valour Consultancy ratifies the importance that cyber awareness has in todays’ shipping world. By implication, cyber security should be considered vertically and horizontally, from top management ashore to onboard crews, assigning resources and responsibilities that could create a new culture based on continuous risk assessments and operational efficiencies. Perhaps, the Danish conglomerate failed to capture the educational/training benefits that cyber aware programs bring to the industry, which is the reason why many business units across the organisation were vulnerable to the crime.

Ongoing risk assessments should sequentially be employed once awareness reaches optimal results. Every employee should be aware of any potential risk and internal vulnerabilities, carry out continuous assessments and identify solutions in the event of an attack, increase protection methods and mitigate the impact of exposure, implement contingency plans (ideally non-electronic ones against data deletion and shutdown of IT systems), and follow a recovery plan that covers the inspection, detection, and deletion of threats. Following those actions is essential to minimise the risk of loss of data, revenue, and reputation.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_text] As the shipping industry keeps moving slowly to new forms of technology and digital innovations, criminality has started to make a huge impact on the ocean supply chain. On June 27th, A.P. Moller-Maersk fell victim to a coordinated international cyber-attack, which affected several of its businesses across the world, causing the shutdown of IT systems across its business units against virtual intrusion. The impact of the attack was critically significant not only for the amount of goods being transported on a daily basis, but also for the major disruption it caused on its port-to-port communications and digital applications. Without a doubt, the recent cyber-attack unraveled key vulnerabilities and plausible negligence given Maersk’s position as the world biggest shipping line and also, operator of 76 ports via its APM Terminals division. The Danish firm reported, “We can confirm that Maersk has been hit as part of a global cyber-attack named Petya on the 27 June, 2017. IT systems are down across multiple sites and select business units…We have contained the issue and are working on a technical recovery plan with key IT-partners and global cyber security agencies”. It is difficult to ascertain the exact reasons why Maersk fell victim to such a criminal manoeuvre without having a look at its computer systems and IT capabilities. Nonetheless, it does beg the question: how does one of the largest container shipping companies in the world, which beyond doubt, invests huge amounts of money on IT developments, get brutally infected? During a live interview, Vincent Clerc, Maersk Line’s Chief Commercial Officer, explained that while continuous security assessments and further investigations were still in progress, the firm had been focusing on devoting more resources to business continuity and adequate protection for its customers. As part of its response to the attach, Maersk enabled the use of manual processes and INNTRA to guarantee continuity and deter customers to keep facing disruptions. After a week of backlog and assessments for full transparency, major digital applications and APM Terminals resumed operations and productivity levels reached normality. Yet, as opposed to other insiders who failed to enumerate the causes that made Maersk a clear victim, surveys and industry experts exposed their views on this topic. These views commonly comprise a mixture of technological, human, and digital failings. In its Crew Connectivity 2015 survey, Futurenautics found that, “Only 12% of crew had received any form of cyber security training. In addition, only 43% of crew were aware of any cyber-safe policy or cyber hygiene guidelines provided by their company for personal web-browsing or the use of removable media (USB memory sticks etc.). Perhaps unsurprisingly, given the above statistics, fully 43% of crew reported that they had sailed on a vessel that had become infected with a virus or malware”. Phil Tinsley, Manager, Maritime Security at Bimco said, “It is the human element which we believe is the gravest concern. Why? There is unfortunately still a lack of awareness of the potential severity of a malicious cyber security attack on board a ship. Information technology systems and operational technological system protocols are often not fully understood by all ships’ crews. There is potential for an incident to occur through negligence, misuse or even deliberate acts when dealing with on board systems, which are connected”. Digital innovations are also the newest game changers that are exposing shipping companies to new vulnerabilities. With more than 600 vessels operating in around 130 countries, Maersk created the “Maersk Advanced Analytics Team” in order to improve operational efficiencies, fuel savings, and customer service. Yet, digitalisation absorbs new issues; vessels are increasingly using systems that rely on data usage and analytics that bring a greater risk of unauthorised access or malicious attacks to ships’ systems and networks. “One of the biggest challenges I see in the shipping and maritime sector is the pace of digitalisation in the industry versus the ever-changing threat landscape. Today a lot of critical functions, commercial and business operations must meet the digitalisation demand and this has forced industries, including the shipping and maritime sector into meeting demands, which potentially changes the way security was built and designed to secure infrastructure, protect data, customers and employees,” said Jens Monrad, Senior Intel Analyst, at FireEye iSight. The shipping industry is waking up to a new era of technological innovations. Even so, there is an evident lack of maturity, even for the largest shipping firms, to develop a technical checklist of preventive actions that should be followed to avoid potential cyber threats. Transforming obsolete processes and fragmented supply chains into fully protected, integrated systems requires pragmatism and caution to say the least. Lars Jensen, CEO and partner, at SeaIntelligence Consulting, added: “Many shipping companies wrongfully believe that cyber security has to be expensive. The reality is that often simple, inexpensive, actions will raise security significantly both on the landside and on the vessels. Often it is a matter of ensuring that systems get updated in a timely fashion, business processes are changed slightly, networks are properly configured, security features are tested and users properly trained.” Valour Consultancy ratifies the importance that cyber awareness has in todays’ shipping world. By implication, cyber security should be considered vertically and horizontally, from top management ashore to onboard crews, assigning resources and responsibilities that could create a new culture based on continuous risk assessments and operational efficiencies. Perhaps, the Danish conglomerate failed to capture the educational/training benefits that cyber aware programs bring to the industry, which is the reason why many business units across the organisation were vulnerable to the crime. Ongoing risk assessments should sequentially be employed once awareness reaches optimal results. Every employee should be aware of any potential risk and internal vulnerabilities, carry out continuous assessments and identify solutions in the event of an attack, increase protection methods and mitigate the impact of exposure, implement contingency plans (ideally non-electronic ones against data deletion and shutdown of IT systems), and follow a recovery plan that covers the inspection, detection, and deletion of threats. Following those actions is essential to minimise the risk of loss of data, revenue, and reputation. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]