Why intelligent insights are the only certainty in an uncertain world

Our Commercial Director, Ian Kerr, talks about the impact on the ship charterer sector of the current conflict in the Middle East, and how AI analytics has a critical role to play.

One of the many learnings from the current US-Israel war with Iran is that we can expect the world to remain uncertain. The reliance of most countries on a stable global economy means that any disruption – particularly in the oil-producing Middle East – has a worldwide effect.

In no sector is this most dramatic than in shipping. Vessels in the Gulf region have altered courses, halted movements or reversed direction amid heightened military activity and navigational risks. That means that vessels are not where they are supposed to be, cargoes are disrupted and port organisation is thrown out of sync.

This potential for severe disruption and congestion across global shipping networks means that alternative regional hubs face the increasing risk of port congestion and cascading delays across global liner schedules.

What does this mean for shipping and charterer businesses?

First, certainly war-risk insurance premiums and related surcharges will rise. In fact, we are already seeing increases in this area. Secondly, shipping companies themselves will have to manage the impact of the rising costs and availability of fuel. Both of these, alongside issues with reputational management, and disruption to usual routes and deliveries means a significant increase in the costs of shipping operations. 

All of this is happening at a time when the freight shipping sector is already under considerable pressure. Charterers and operators need to be on top of supporting operational and financial data more than ever. Getting a grip on this data now will help businesses to operate more decisively and efficiently during the current chaotic geopolitical situation, and will also help to protect against future conflicts and unpredictable operating conditions.

Our QEA platform is ideal for charterers who want to be able to manage their businesses more efficiently – at any time. Importantly, the intelligent insights generated by our AI-driven dashboards put businesses on the front foot – able to scenario plan with accuracy and using real-time data to proactively manage the business across financial and operational measures. Drop us a note to find out more.