Shipping’s $10bn data deluge: why 90% of vessel insights vanish
Maritime’s decade-long sensor spree has generated terabytes—yet less than 10% of vessel data triggers action.
The maritime industry has spent the past decade transforming vessels into data-generating machines, yet less than 10% of the information collected translates into operational decisions, according to industry leaders. While modern ships produce over 3,000 high-frequency parameters, from engine performance to navigation systems, most of this data vanishes before it can inform critical choices like route adjustments, maintenance schedules, or crew instructions.
Gert-Jan Panken, General Manager and Vice-President at Inmarsat Maritime, warns that the industry’s focus on data collection has overshadowed its ability to act on insights. “Across the industry, the percentage is still relatively small,” he says. “The objective should not be to act on every data point but to identify which data can materially improve a decision, ensure it is reliable, and make it available at the right time and in the right context.”
From terabytes to action: The missing link: vessel data utilisation
The disconnect between data generation and decision-making is stark. Joy Basu, Chief Executive of Smart Ship Hub, describes the problem as “terabytes collected, a sliver acted upon.” Modern vessels can produce more than 3,000 high-frequency parameters, while older ships may generate closer to 200. However, Basu notes that only 180 to 240 of these parameters are critical for predictive diagnostics and condition-based monitoring.
Yet, despite these advancements, the gap between data collection and actionable insight remains wide.
Nikhil Mathew, Chairman and Co-Founder of Admaren Tech, defines actionable data as information that alters something tangible, such as a maintenance interval, route, speed, or spare-parts order. “Data becomes actionable only when it alters something tangible,” he says. “On that basis, less than 10% of available vessel data is consistently converted into operational decisions.”
Manish Singh of Maris Investments goes further, arguing that most vessel data was originally gathered for compliance rather than operations. “Anyone claiming more is counting reports rather than decisions,” he says. “Value comes from relevance and timing, not volume alone.” This perspective underscores a broader industry challenge: the need to move beyond compliance-driven data collection to a model where data actively drives operational efficiency and cost savings.
“The bottleneck is rarely data volume, it’s context and curation,” he says.
Panken emphasises that the right data must reach the right decision-maker. “The right data also needs the right owner,” he says. “Stop generating data for its own sake. Identify the information that improves a decision. Make sure it can be trusted. Deliver it when there is still time to act.
The industry’s digital architecture is shifting from simply moving data ashore to managing it intelligently between vessel and shore. However, the final step, ensuring insights reach a person or process capable of acting on them, remains underdeveloped. Matthew Talbot, Co-CEO of Complexio, estimates that the proportion of vessel telemetry changing a decision today remains in the low single digits. This underscores the need for better integration of data into existing workflows, as well as the development of new tools to bridge the gap between insight and action.
Artificial intelligence (AI) could accelerate the process, but only if fed with disciplined data input. OneLink Performance, a provider of maritime performance solutions, has developed platforms that leverage AI to identify patterns in vessel data, such as fuel consumption trends or maintenance needs.
However, as Pankaj Sharma, Chief Executive of OneLink Performance, notes, the success of such tools depends on the quality and relevance of the data fed into them. “With a mature and integrated platform, 60, 80% or more of vessel data could become actionable insight,” he says. Yet, as Kris Vedat of SmartSea points out, the industry currently operationalises less than 20% of the data it generates, highlighting the significant room for improvement.
For shipowners and operators, the challenge is clear: investing in the tools and workflows to bridge the gap between data and decision-making. As Basu puts it, “The number that matters is not how much data you hoard but how much you convert into an action.” This shift requires not only technological advancements but also a cultural change within the industry, where data is viewed as a strategic asset rather than a compliance requirement.
What this means for the maritime sector
The implications of this data-action gap are far-reaching. For shipowners, the inability to convert data into decisions translates into missed opportunities for cost savings, efficiency gains, and emissions reductions. For example, WinGD, a leading designer of two-stroke marine engines, has demonstrated how predictive maintenance based on real-time data can reduce downtime and extend the lifespan of critical components. By identifying potential issues before they escalate, operators can avoid costly repairs and unscheduled stops, directly impacting their bottom line.
Similarly, AXSMarine has shown how voyage optimisation tools can help operators reduce fuel consumption by adjusting routes and speeds based on real-time weather and sea conditions. Such tools rely on a subset of the thousands of parameters generated by modern vessels, yet their impact can be substantial. For instance, a 1% reduction in fuel consumption across a fleet of 50 vessels could save millions of dollars annually, while also reducing greenhouse gas emissions.
The next phase of maritime digitalisation will not be about collecting more data but about ensuring the right insights reach the right people at the right time. This requires a fundamental shift in how the industry approaches data. Rather than treating it as a byproduct of operations, data must be viewed as a strategic resource that can drive competitive advantage. Companies like Novamaxis and SmartSea are leading the way in developing platforms that integrate data from multiple sources, providing operators with a holistic view of their vessels’ performance.
For operators, the path forward involves three key steps. First, identifying the critical data points that directly impact operational decisions, such as fuel efficiency, maintenance needs, or route optimisation. Second, ensuring that this data is reliable, timely, and accessible to the right stakeholders.
Third, integrating data into existing workflows to create a repeatable process for turning insights into action. This may require investment in new technologies, such as AI-driven analytics platforms, as well as training for crew and shore-based teams to interpret and act on data effectively.
As the industry moves towards this next phase, collaboration will be essential. Shipowners, technology providers, and regulators must work together to establish standards for data collection, sharing, and utilisation. Initiatives like the Digital Container Shipping Association (DCSA) are already paving the way for greater interoperability and data standardisation across the maritime sector. Such efforts will be critical in ensuring that the industry can fully realise the potential of its data.
The maritime industry stands at a crossroads. After a decade of wiring up vessels with sensors and data-generating equipment, the focus must now shift to turning this data into actionable insights. The challenge is not just technological but also cultural. As Gert-Jan Panken notes, “The industry has invested heavily in the journey from sensor to server but less in the final step from information to human action.”
For shipowners, the benefits of closing this gap are clear. By converting even a fraction of the data generated by their vessels into operational decisions, they can achieve significant cost savings, improve safety, and reduce their environmental footprint. For example, NAPA has developed tools that enable operators to simulate voyage scenarios based on real-time data, allowing them to choose the most efficient route and speed. Such tools can reduce fuel consumption by up to 5%, a substantial saving given the scale of modern shipping operations.
However, the road ahead is not without obstacles. The sheer volume of data generated by modern vessels can be overwhelming, and not all of it is relevant to operational decisions. As Joy Basu points out, “The number that matters is not how much data you hoard but how much you convert into an action.” This requires a disciplined approach to data management, where operators focus on the critical parameters that drive tangible outcomes.
Moreover, the industry must address the issue of data ownership and accountability. As Nikhil Mathew notes, “Data becomes actionable only when it alters something tangible.” This means ensuring that data is not only collected but also analysed, interpreted, and acted upon by the right people. For many operators, this will require a shift in mindset, from viewing data as a compliance requirement to treating it as a strategic asset.
The role of artificial intelligence in this process cannot be overstated. AI has the potential to accelerate the identification of valuable data and automate routine decisions, freeing up human operators to focus on more complex tasks. However, as Peter Schellenberger of Novamaxis cautions, AI is only as good as the data it is fed.
“The industry must ensure that the data input into AI systems is reliable, relevant, and timely,” he says. This will require investment in data quality and governance, as well as collaboration between technology providers and operators to develop AI-driven solutions that meet the industry’s unique needs.
For operators looking to bridge the data-action gap, the first step is to assess their current data capabilities. This involves identifying the key parameters that drive operational decisions, ensuring that data is collected reliably and transmitted securely, and developing workflows to turn insights into action. Companies like Smart Ship Hub and OneLink Performance offer platforms that can help operators streamline this process, providing tools for data analysis, visualisation, and decision support.
The next phase of maritime digitalisation will be defined by the industry’s ability to turn data into decisions. Those who succeed will not only improve their operational efficiency but also gain a competitive edge in an increasingly data-driven world. As the industry moves forward, the focus must remain on relevance, timing, and action, not just the volume of data collected.
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