More artificial intelligence (AI) use cases could soon shake up the container shipping industry in a big way.
Ocean freight giant CMA CGM has partnered with Google to accelerate the integration of AI across its global operations. The partnership will also extend to CMA CGM’s third-party logistics (3PL) subsidiary, Ceva Logistics.
By leveraging Google‘s AI solutions and insights from experts, CMA CGM will help empower its employees’ decision making. The companies say every program and tool developed within the partnership will be designed to assist users in their decision-making processes across several key workflows.
This collaboration aims to “revolutionize” shipping, the ocean carrier says, by enhancing efficiency, responsiveness and adaptability to market fluctuations and disruptions, resulting in faster and more responsive customer service.
As part of the partnership, CMA CGM will use the search giant’s technology to optimize vessel routes, container handling and inventory management to ensure more efficient and timelier delivery of goods while minimizing costs and carbon footprints.
“This collaboration aligns with our digital roadmap and investments, marking a crucial step in our transformation strategy,” said Rodolphe Saadé, chairman and CEO of CMA CGM in a statement. “Together with Google, we will lead the digital revolution in shipping, logistics and media, optimize our processes and enhance our competitive edge. We are committed to driving innovation with tangible benefits for our staff members and our customers.”
Ceva Logistics plans to first use the technology to focus on warehouse smart management to better operate its 111 million square feet of warehouse space. The smart management tool is built to allow Ceva Logistics to better anticipate and plan its operations with the aid of enhanced volume and demand forecasting.
“By combining CMA CGM’s deep expertise in shipping and logistics with Google’s AI tools and secure infrastructure we can help CMA CGM digitally transform its own operations and those of its customers,” said Sundar Pichai, CEO of Google and Alphabet. “This partnership is a prime example of how AI can assist employees, improve outcomes for customers, and revolutionize industries.”
The partnership will extend to CMA Media to help the container shipping giant bolster its new media unit. Google’s AI expertise in this field will help CMA Media develop tools to assist journalists in its day-to-day work, via tasks such as: synthesizing and translating documents; generating media snippets for social networks; or digitizing and referencing archives from articles, photos or videos.
In March, CMA CGM acquired major French news organization, Altice Media, which owns television news channel BFMTV and the RMC radio station, to form CMA Media.
All CMA CGM employees will be trained on using the system at TANGRAM, the group’s excellence center for learning and innovation.
This collaboration is part of CMA CGM’s overall strategy to transform its business through AI innovation. It follows key moves such as CMA CGM’s investment in startups including Mistral AI, PoolSide and Dataiku, as well as the launch of 100-million-euro ($109 million) open science lab, Kyutai.
The deal between CMA CGM and Google does not appear to be exclusive. But with the U.S. Big Tech firm teaming up with a container shipping giant, this could potentially open the door for more major AI-powered tech giants working with competitors like Mediterranean Shipping Company (MSC), Maersk and Hapag-Lloyd.
AI technologies tout the ability to accomplish some of the tasks that ocean carriers need to handle on a day-to-day basis, such as those Google will be helping for CMA CGM. One of the more prominent use cases of the team up has been emissions reduction.
The global commercial shipping industry could cut down its carbon emissions by 47 million metric tons per year by deploying AI for sea navigation, according to a study by autonomous shipping startup Orca AI last month.
The use of the technology could reduce the need for maneuvers and route deviation from close encounters with high-risk marine targets such as vessels, buoys and sea mammals by alerting the crew in real time, according to the report.
“In the short term, it can lead to fewer crew members on the bridge, while those who are on the bridge will have a reduced workload and more attention to tackle complex navigational tasks, optimizing the voyage and reducing fuel and emissions,” Orca AI CEO Yarden Gross told Reuters. “In the long term, it will open the door to fully autonomous shipping.”