Intel and Rolls-Royce Team Up for Autonomous Shipping

November 13, 2018

While self-driving cars grab most of the headlines, autonomous ships could be the first unmanned vehicles to make a real splash.

One business making a big push toward this future is Rolls-Royce's commercial marine division, which is now part of Norwegian shipping company Kongsberg (NASDAQOTH:NSKFF). That division just inked a deal with Intel (NASDAQ:INTC) to deploy Intel's technology for autonomous shipping fleets, which could be roaming the seas by the time we welcome the 2030s.

This is not the Rolls-Royce motorcar brand that you're familiar with, which is now owned by BMW. Rather, this is the Rolls-Royce division involved in making engines for commercial shipping. That division was sold by the larger Rolls-Royce British parent company, which makes aerospace engines, to Kongsberg in June. 

This new technology put Rolls-Royce on the cutting edge and I think it's also a positive sign for Intel's strategic acquisition strategy of the past few years. 

The benefits of autonomous shipping

There are several key benefits for autonomous shipping, all of which are similar to the benefits of self-driving cars, just on a larger scale.

The most obvious benefit is reduced costs. You wouldn't have to pay a crew, but it's actually more than that, because newer ships could be designed from the ground up without the need for lodging quarters, fresh-water storage, extra heating and cooling systems, or other amenities humans need. That would not only cut costs, but also free up space to do what ships are intended to do -- carry as many shipping crates as possible.

Second, autonomous ships should be much safer. According to Allianz Global Corporate & Specialty, human error is responsible for 75% to 96% of all marine accidents. These accidents are the costliest part of liabilities across the industry.

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