**Australia**: The shipping sector struggles to adopt AI, with only 28% of leaders utilising the technology. Expert Brian Hack highlights challenges like outdated practices, data variability, and an ageing workforce, urging the industry to rethink processes for future growth and efficiency.
The global shipping industry is facing significant challenges in integrating artificial intelligence (AI) into its operations, according to freight and logistics expert Brian Hack from EES Shipping, based in Australia. Hack’s comments reflect a broader concern highlighted in the 2025 MHI Annual Industry Report, which has revealed only 28% of over 700 supply chain leaders surveyed worldwide are currently utilising AI technology. Primary obstacles to wider adoption include a lack of understanding of AI, insufficient clear business cases, and budget constraints.
Brian Hack, who serves as Managing Director of EES Shipping, indicated that while his company has been experimenting with AI for administrative tasks, the industry as a whole is losing out on potential growth and productivity. “One of the major challenges I believe comes from within the industry itself. We’re trying to implement relatively new technology into what is arguably one of the oldest industries in the world. The global supply chain hasn’t changed all that much over several decades, so how does AI fit into what might be antiquated ways of operating?” he stated.
Hack emphasised the need for the industry to rethink its existing processes to better leverage new technologies. He noted that the varying data and documentation standards across jurisdictions contribute to the difficulties in AI implementation. “While the global industry operates under largely the same data and document sets, the slight variations currently make it difficult for AI programs to accommodate,” he explained.
Employee demographics also pose challenges. The industry is characterised by an older workforce, which can hinder the adoption of new technology. Hack mentioned the importance of adequate training and education to familiarise employees with the potential benefits of AI, rather than allowing apprehension to take hold. “We need to make sure we’re offering adequate training and education so employees can see the potential benefits and opportunities technology presents, rather than being fearful or concerned,” he added.
The potential implications of broader AI adoption in the supply chain are considerable. Hack identified several key opportunities:
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Efficiency: AI can significantly enhance efficiency by streamlining data entry, document reading, and cross-checking processes, potentially leading to faster approvals and reduced error rates.
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Innovation: With advanced data analysis and trend predictions, AI technology can facilitate innovation by supporting sustainability initiatives, improving tracking, and offering a more personalised customer experience. “I’m sure there are ways we can implement AI to our advantage that we haven’t even considered yet,” Hack noted.
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Recruitment: Attracting younger, skilled workers to the industry poses another challenge. Hack asserted that the adoption of new technologies is essential to align the industry with the standards of technology that younger generations are accustomed to. “Younger workers have grown up with technology embedded in their everyday lives. How can we encourage them into our industry if the technology isn’t up to the standard they already know exists?” he queried.
While concerns surrounding AI’s potential to replace human roles have been raised, Hack maintains that these challenges also present opportunities. He offered an example: “We used to employ ‘runners’ to physically take documents from one place to another. That role doesn’t exist anymore, but what we do have is dedicated staff in IT – those positions didn’t exist 20 years ago.”
Summarising the situation, Hack remarked, “Sectors that are embracing AI technology are moving ahead and making significant progress. Some may say that if the supply chain doesn’t take meaningful steps to implement AI, the industry will be left behind; however, I would argue that we’re already behind now, and we need to catch up sooner rather than later.” The commentary reflects an urgent call for the shipping industry to adapt and evolve in an increasingly technological landscape.
Source: Noah Wire Services
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