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The pandemic transformed shipping delays and other supply chain issues into dinner-table topics. But those conversations invariably focused on "When do you think I'll get my stuff?" rather than the more critical questions of shipping's impacts on the planet.
"Today's shipping ports are pollution hotspots," said Matt Heider, CEO of Nautilus Labs, a maritime technology company that aims to reduce emissions while maximizing commercial returns.
Matt said bottlenecks in local ports — particularly Long Beach and Los Angeles, California, where ships emit more than 100 tons of smog daily — are causing a headache for regulators worldwide.
"Aviation has solved bottlenecks at airports with just-in-time arrival, and ground shipping has optimized delivery pick-ups and drop-offs along routes and maximized fuel efficiency. The question becomes, 'Why hasn't shipping done the same?'"
He said the shipping industry is responsible for 3% of anthropogenic greenhouse gas (GHG) emissions and, if left unchecked, will account for 17 percent of GHG emissions by 2050. Yet, even in a data-driven, digitized world, the shipping industry remains dependent on unreliable and inefficient manual processes.
Matt — who found his entrepreneurial passion at age five when he shared his visions for novel GI Joe characters with the toy's manufacturer — thinks things could be different.
"Climate technology innovation and investments are coming to fix the shipping industry's legacy structures," he said. Nautilus is already working with hundreds of vessels in shipping hubs worldwide, cutting emissions equivalent to taking hundreds of thousands of cars off the road yearly.
Shipping may seem off-topic for a podcast dedicated to solar industry-related content. But if you think about it for a minute, you'll understand it's an adjacent category because, in many very concrete ways, ships are floating microgrids.
As Matt said, "The thing that might resonate well with your audience is to think of a ship as a power plant at sea. It's out there floating, generating power that provides propulsion and helps maintain the cargo on board.
"But if there's no internet connection, because there's no satellite coverage, particularly in the older era, the ship only needs to operate successfully to get to the next port. Optimizing along the way was not a real-time consideration."
Until now, that is, because Matt has ideas. Before Nautilus, he built sales and account management systems at software startups that have grown to unicorns and worked in global software engineering for IBM on its Watson team. In 2021, Forbes named him to its Next 1000, a list of ambitious and inspiring leaders redefining what it means to run a business today and create change that matters.
Nautilus recently closed its $34 million Series B funding round led by M12 and Microsoft Climate Innovation Fund, marking their first collaborative investment. "This speaks to our combined mission of entrepreneurial development and sustainable innovation, striving to continue growing our business and address the shipping industry's emissions on a macro level," Matt said.
"As a legacy industry that carries our global supply chains, the shipping industry must put environmental and social wellbeing at the core of its work. Nautilus supports shipping owners and charterers, using data to reduce fuel consumption and save costs during shipping voyages."
He believes data and artificial intelligence offer invaluable tools to improve every part of shipping voyages, reducing supply chain issues and port congestion and unmooring global shipping from its centuries-old business model.
These solutions will transition the shipping industry to sustainable and fuel-efficient operational systems. He predicts that by embracing voyage optimization, the maritime industry can set an example globally for placing ESG initiatives at the forefront of business efficiency.
It's a fascinating vision — and one I encourage you to join us to learn more about in today's show.
TIMESTAMPS:
(05:15) What Matt was trying to address that got him his job
(09:41) How Matt’s background influenced his career
(11:57) What Matt's professional journey is like
(13:55) Matt's IBM career experience
(17:13) Skill sets Matt learnt at IBM
(19:58) What Matt's advice is for young entrepreneurs
(25:16) How Andela's mission motivated Matt
(27:34) What IBM saw in Matt that has contributed to his success
(31:54) How Matt found the best market fit as a new CEO
(35:03) Where Matt got his brand map idea from
(37:08) Where Matt learnt his customer’s exploration skills
(40:35) Is Nautilus Labs now a client of Andela
(42:00) Why investors believe in Nautilus Labs
(43:26) How Matt qualifies & quantifies decarbonizing the shipping industry
(47:26) Meta data modeling
(52:16) Matt's advice to young entrepreneurers
(55:02) Book recommendation
(59:30) How to find Matt
(1:00:05) Matt’s bold prediction
(1:01:41) Wrap up
BOOKS MENTIONED AND RECOMMENDATIONS:
NOTEWORTHY QUOTEs:
“When you’re a founding team, you have to be self-aware of the strengths and weaknesses that you have and know where the gaps are, because you got some really big problems to solve. And you need the right people around the table to figure it out.”
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ABOUT THE HOST OF SUNCAST:
Nico Johnson is the creator and host of SunCast, consistently rated a top solar podcast in the clean energy sector. The content of the show is geared towards listeners looking for insights on where the markets are headed, how to position themselves or their companies, and what today's market leaders do to stay ahead of the pack.
Nico is an Investor, Executive Coach, and 16-year veteran of the solar industry, having led development in the US and Latin America for global companies like Trina Solar and Conergy.
You can connect with Nico Johnson on Twitter, LinkedIn or email.
If you’ve been second-guessing your work decisions or maybe trying to reconsider how you "fit" in the renewable energy industry -> grab 20 minutes on Nico's calendar and discuss whether having him as Your personal coach might be the right next step.