The Hong Kong-based ocean carrier projects an annual cost savings of $10 million from improved network operations and efficiency.
Hong Kong-based ocean carrier Orient Overseas Container Line Ltd. (OOCL) is teaming up with Microsoft’s research arm in the Asia Pacific region to research the development and deployment of artificial intelligence in its network operations.
OOCL and Microsoft Research Asia said in a joint statement the partnership is “expected to nurture over 200 AI developers over the next 12 months.” OOCL is projecting an annual cost savings of $10 million in network efficiencies stemming from the collaboration.
According to OOCL, the carrier already employs more than 1,000 AI developers in San Jose, Hong Kong, Zhuhai, Shanghai and Manila, allowing it to develop predictive analytics for vessel schedules and berthing activities.
The partnership is the latest to pair a member of the ocean shipping community with a high-profile technology company.
Industry leader Maersk Line in January launched a joint venture company with IBM aimed at developing a blockchain-based solution for managing and tracking container shipments. Then in February, global third-party logistics provider Agility announced it would participate in the Maersk-IBM blockchain solution, sharing information about specific shipment events in an effort to accelerate development.
But even before that, GE Transportation, a division of manufacturing giant General Electric, piloted a data digitization project at the Port of Los Angeles that has since been expanded to the nearby Port of Long Beach.
“Microsoft has been committed in providing cutting-edge AI solutions for companies across different industries to help drive digital transformation,” Cally Chan, general manager of Microsoft Hong Kong, said of the partnership with OOCL. “With our Intelligent Cloud and Intelligent Edge vision, we are partnering with selected top customers worldwide to accelerate the adoption of AI innovations into products and solutions that can be applied in real business contexts. The partnership between MSRA and OOCL demonstrates our strong progress in revolutionizing the shipping industry.”
“With MSRA’s efforts and expertise, we expect to save around USD10 million in operation costs annually by applying the AI research and techniques for optimizing shipping network operations from our most recent 15-week engagement,” added OOCL Chief Information Officer Steve Siu. “Moving forward, we will embark on an 18-month joint-partnership in research and development to apply deep learning and reinforcement learning in shipping network operations.
“Moreover, MSRA will assist us in training over 200 AI engineers by conducting machine learning and deep learning sessions at the Hong Kong Science Park over the next 12 months,” he said. “We look forward to strengthening our partnership with MSRA to leverage AI research and innovations to drive digital transformation in the shipping industry and to exchange knowledge among our top developers so that we can better address customer needs with advanced technologies and predictive analytics.”
OOCL teams up with Microsoft on AI development
