After Failures, Virtual Watchtowers Aim to Connect Shipping Data
Last week, Virtual WatchTower (VWT) representatives toured the US West Coast, including a stop in Palo Alto. As the shipping industry reels from the 2023 failure of Maersk and IBM’s TradeLens platform, this project with Swedish public financing, is taking over the baton.
The shipping sector faces frequent disruptions, such as the blockage in the Suez Canal, which causes unpredictable delays.
One of the representatives for VWT, Mikael Lind, Senior Strategic Research Advisor at RISE, highlighted the issue as he took the stage at Nordic Innovation House in Palo Alto.
“Consider a shipment traveling from Sweden to Australia. It transits through the Port of Valencia but encounters significant delays, forcing us to arrange an airplane transfer to complete the journey. This fragmented approach leads to inefficiencies and increased costs.”
Virtual Watchtower (VWT) enhances end-to-end supply chain visibility to ensure on-time deliveries worldwide and coordinated joint responses to problems.
“For example, containers from Northern Forest bound for Australia are shipped to Finland and loaded onto a ship. After encountering a storm, the global fleet operations center advises increasing speed to ensure the planned arrival. Upon arrival, port personnel reload the containers onto another ship, already bound for Sydney via Singapore.”
VWT says the organization seeks to build a inclusive and secure framework by partnering with industry leaders like Ericsson and involving multiple research institutes from Sweden, Finland, Caltech, and Estonia. The project will be organized through a non-profit organization in London.
However, several global and U.S. projects have aimed at the same thing, creating a network where shipping data is shared. But they have faced problems due to unwillingness to share valuable data, security, and regulations.
Last year, A.P. Moller–Maersk and IBM closed down their blockchain-based TradeLens platform after it failed to attract sufficient users. Launched in 2018, TradeLens aimed to digitize global trade by managing and tracking millions of shipping containers through blockchain technology. This failure highlights the challenges of gaining widespread industry participation and creating tangible value for all stakeholders.
Silicon Valley Nordic Beat has tried to reach Mikael Lind for follow-up questions without success. Instead, some of the questions were answered by Andreas Netz, head of emerging tech at Vinnova.
When can VWT become a reality?
"The project has now defined the technical solution for VWT and testing is underway within the VWTnet framework. The network of users and technology providers is continuously growing, and together they are working to design the most optimal solution. The goal is to establish a not-for-profit, membership-based organization within 6-9 months, engaging all involved parties."
How is security and privacy ensured for the data shared in the network?
"Since VWTnet is a distributed network, data is only shared between parties directly involved in specific transports, minimizing the risk of data falling into the wrong hands. The project is also working on a parallel initiative focusing on cybersecurity within VWT. Additionally, the data sender has full control over how information is used, addressing many concerns regarding security and privacy."
Why is the initiative driven by research organizations rather than transporters?
"National research institutes play a crucial role in supporting innovation processes for the domestic industry. Given that supply chains are global, research institutes need to collaborate internationally. Large transport organizations have historically struggled to create value for the entire industry, which is why the project is now driving this initiative as a public 'public good,' inviting all to participate without any single party owning it."
The project currently has a total budget of approximately $2 million, of which funding from Vinnova is about $0.5 million and $0.65 million from the Singapore Maritime Institute, as well as in-kind contributions from participating partners