BIMCO is one of the leading standardization forces in the world of shipping. Here is an example related to cybersecurity.
How do you write a contract that binds participants to provide an appropriate level of cybersecurity? As the article makes clear, cybersecurity has been an issue in several recent shipping incidents. Cyber attack is very real, and shipboard systems are great targets; they have low-speed interfaces to the network, there are relatively few kinds of content transmitted, and they operate in international waters where there is no specific enforcement. And cybersecurity can be expensive, though it is low-cost compared to the damage that could result from just one incident.
Standards are needed. BIMCO springs to the task. The drafting team consisted of a law firm, shipowners, P&I clubs, and Klaveness, a maritime investment firm. There’s a two-fold notification process; immediate notification of an incident, and then a detailed notification once an incident has been investigated.
The parties are required to share the information throughout. This last point is important, because cyber events often require joint resolutions for mitigation and future prevention.
The contract element also requires any third parties employed by the participants to have adequate cybersecurity, and makes the primary firms responsible for seeing to it.
Now we will have to see whether the clause catches on in the contracts we see written. There is always a risk with a top-down driven standard; it may miss the issues the market needs to address.
Research has shown (albeit in other contexts, such as health care) that top-down standard initiation often does not produce the penetration of results that flexible evolution of a standard does. However, someone has to start the ball rolling, and here we have a credible effort.
Let’s now see more innovation in this area of contracting, and let’s see the results in the open, so the best combination of terms emerges and gets global acceptance.
via BIMCO launches new cybersecurity clause – Digital Ship – The world leader in maritime IT news
May 24, 2019 in Logistics, Shipping, Strategy, Supply Chains, Sustainability
Tagged challenges, contracts, cybersecurity, standards, trade, transportation, trends
This Boston Consulting Group report by Massimo Portincaso, , and Philippe Soussan, discusses seven categories of so-called deep-tech areas of research that are likely to yield new disruptions for businesses of all types. They believe that deep-tech industries are no longer dominated by larger companies doing incremental research, but ratherby small, nimble enterpreneurial firms finding and developing solutions for novel use cases.
They claim we are moving into a phase in which truly new types of infrastructure for business uses is emerging. And the development of these new uses requires a whole ecosystem– a band of cooperating players, including technicians, investors large and small, and firms who have use cases– rather than simply a firm, some financing, and a product. This differs from the ‘maker’ approach to innovation, which believes we can just set people working with some simple tools, and they will come up with the products the world needs.
I support this ecosystem approach, not the more limited one. As an example I call your attention to NYMIC, the New York Maritime Innovation Center, started by my colleague Dr Chris Clott of SUNY Maritime. It fits exactly into the role of helping create a good ecosystem for innovation in the maritime field, one which greatly needs stimulants to produce service improvements. Its motto is “Convene, Connect, Catalyze”, which exactly expresses what BCG’s discussion here is saying.
BCG has a full report entitled The Dawn of the Deep Tech Ecosystem. Much can be learned by studying how it is evolving in the different deep tech areas they believe are a part of it. Link to PDF.
via The Dawn of the Deep Tech Ecosystem
May 10, 2019 in Advanced Computing, entrepreneurship, Investing, Logistics, Ports, Shipping, Strategy, Supply Chains
Tagged computing, entrepreneurship, innovation, Logistics, Shipping, Software, technology, transportation, trends
This is a fascinating report about global trade, with many interesting statistics, and with points of view not often presented so cogently.
Authors Susan Lund, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir point out that global trade in services already probably exceeds that for goods. If a fair value is placed on it, we would see the US trade deficit, for example,wiped out and replaced by a larger surplus. They also point out that labor is a declining factor both in the value of production, and in labor cost’s ability to determine where products get made. The intellectual property value is much higher, and often moves in reverse fashion to the goods. But it is hard to price into conventional labor statistics.
I can’t wait to read the whole document!
via Globalization in transition: The future of trade and global value chains | McKinsey
Here is the full document link.