Shipping container tracking technology
Every day, about 30 ships are delayed in the ports of Los Angeles and Long Beach due to queues. The situation has escalated so much that the administration has imposed fines on shipping companies that slow down shipments. Delays in ports caused by the pandemic have become a major problem in the global supply chain. In 2021, 40% of ships arrived on time as compared to 70% a couple of years ago. Earlier, the ships used to arrive four days late, nowadays, they may be more than a week late. Statistics show that carriers should reduce the waiting time for goods. One of the ways to achieve this goal is to use container tracking software.
Smart container tracking system
Almost 90% of maritime cargo is delivered in containers on ships, barges, trains, and cars. Although waterway freight accounts for slightly more than 2% of global logistics, in 2019 the volume of maritime trade constituted 57% of the global one.
These figures confirm how important container shipping is for the development of international commerce. Therefore, overcoming the obstacles of sea freight with the help of a smart container tracking system is an important part of stabilizing global logistics.
A smart container is a standard “box” equipped with IoT sensors or GPS devices. These trackers are attached to the outer wall of the container or inside to collect data and transmit them to supply chain managers via the cloud. Devices can work without the Internet and send information to any corner of the world.
The monitoring program sends the coordinates of the cargo location and other data to the manager. These are:
- time of arrival at the port;
- door status (open or closed);
- physical parameters of the cargo: temperature, humidity, vibration;
- damage;
- suspicious activity;
- notification of the containers entering the warehouse;
- warning about violations (deviation from the schedule or route, an increase in temperature or humidity, and so on).
Source: actility.com
How the container tracking system works
A cargo monitoring program will function stably and solve problems in case it has four components:
- IoT devices attached to containers;
- a cloud storage platform;
- an API for integration with third-party programs and data transfer;
- communication protocols.
A smart device collects indicators from sensors (unique number, geolocation, time) and transfers them to the monitoring software. One can send the collected data through the API that displays them by container number. The program generates reports in the form of a map with the distance covered within a specified period or a table including data.
Assessing the condition of the container, the customer checks whether the carrier fulfills the terms of the contract, at what stage of the supply chain the cargo is located. While the ship is on the way, the device will monitor the boxes and participants in the logistics chain.
What is the container tracking system based on?
Maritime traffic control would not be possible without the following technologies:
- Satellite communication
GPS/GSM receivers are attached to the wall or the lock of the container. These devices are automatically activated when the ship is moving. They can also “wake up” at specified intervals to detect the location of the cargo and send it to the monitoring program. Thanks to trackers, the manager sees which container is in which port, when it arrived, and how long it stayed there.
- RFID, Bluetooth, Wi-Fi, NFC
Technology allows you to track cargo that is transported over short distances. No satellite connection or cellular network is required to activate wireless tracking. There is no standard way to work with RFID, Bluetooth, Wi-Fi, or NFC. For each case, you need to create an individual IoT system. It will increase the transparency of the transport route from the sender to the recipient, and reduce waiting times and costs.
- AI and ML algorithms
The supply chain generates huge amounts of data, with many variables and relations. Algorithms of artificial intelligence and machine learning are capable of analyzing an endless stream of information.
With AI and ML algorithms, it is easier to determine when and what cargo to ship so that they arrive at their destination on time. AI makes more accurate predictions about the state of the container. It suggests what alternative ports to use to deliver the goods without delay. Based on past trips, it builds several routes with recommendations for departure time and speed.
- Cloud.
The cloud enables all the technologies involved in the supply chain. It stores the collected information, protects it, and quickly transfers it to the user. It helps to encrypt data, control authentication, and detect fraudsters.
The cloud can become the infrastructure for the digital twins of containers. This approach will help you to understand how and where to transport the box so as not to damage its contents. The cloud is becoming a good environment for tools and services that:
- warn customers of potential delivery delays;
- regulate stocks in response to consumer demand;
- automate the processing/return of orders.
The cloud syncs shipping with the rest of the supply chain to unify separate logistics processes into a coherent mechanism.
- Application programming interface (API).
The status of a container (empty, full, loaded, loaded onto the ship, arrived at the port) is transmitted to the web application through an API. Data are provided by unique numbers or a bill of lading (B/L). Monitoring is carried out automatically, there is no need to visit the carrier’s website. The user receives information about:
- the location of ports;
- the carrier;
- the ship (its name, IMO number, location);
- total delivery time, the date of arrival at the port;
- port details (number and names of TS, date of loading/unloading);
- containers with the same B/L number.
Why use shipping container tracking technology
The goal of any business is to reduce costs and increase profits while getting the maximum benefit. For sea freight, success lies in the timely delivery of goods or products in good condition and their entirety. The best solution for this is smart monitoring.
Let’s consider the reasons why each participant in the supply chain needs shipping container tracking technology:
- The carrier (transport operator) has better control over the work to deliver containers on time along the best routes. The program warns of a deviation from the schedule, and the captain adjusts the route and speed of the vessel.
- The logistics service provider receives up-to-date information on the condition of the goods. If the door opens during transportation, the software will notify the manager. The specialist will respond to the incident and check if there were any attempts of break-in and theft.
- Shippers and consignees need to know the condition of the transported goods. For example, whether they were damaged or lost; for what reason the delivery is delayed, and similar information.
- The crew of the ship is liable for the cargo. The crew members must know the number and type of containers and regularly manually inspect their condition, check the condition and physical parameters. With the program, one can control goods remotely much faster than manually.
- The software will help container owners to carry out inventories at the warehouse and collate their reports with the documentation of warehouse operators.
- It is easier for warehouse operators to report to the management on the number of containers in the warehouse. The platform automates warehouse accounting and allows the generation of daily reports.
- Terminal operators check the exact location of each container. After all, boxes are often delivered by several modes of transport. The places where they “change” transport are called terminals. At such points, one needs to count containers and take care that they are not damaged during unloading. It is necessary to track their loading onto other means of transport.
- It is easier for customs and sanitary control to check and process the cargo. For example, if the ship was transporting food and the sensor recorded an increase in temperature in one of the boxes, the sanitary authorities will take it away for a thorough inspection.
- Smart containers will tell the port administration which section of the road should be modernized. If the management finds out that the maximum number of boxes is being transported on one highway, it will carry out repairs there in the first place.
- Insurance companies evaluate the damage caused to the cargo according to the information collected by IoT devices. Based on up-to-date data, they decide what to do with insurance claims. If the ship deviated from the route, got into the pirate zone, and was attacked by the pirates, this may not be an insured event. The insurance company does not need to pay money in such a situation.
With a monitoring app, each interested party in the supply chain will have access to valuable data.
Benefits of smart tracking
The container tracking system is one of the important initiatives to achieve supply chain transparency. Smart containers support door-to-door visibility. When the manager controls the logistics and quality of the cargo, the supply chain becomes sustainable, and the carrier becomes competitive. A business receives the following benefits:
1.Automated data collection.
Monitoring software automates the collection of large amounts of data. Managers receive information about the location and the state of the container in real time. They decide what to do when the ship deviates from the plan or the goods are damaged.
2. Quality control.
Sensors send the owner information about the condition of the goods: temperature, humidity, damage, and so on. This is important for businesses that ship perishable goods such as food, plants, live fish, or medical supplies.
3. Secure exchange of documents between participants in the supply chain.
The data transmitted from an IoT device to the employees of the logistics companies are collected in the cloud and protected by encryption. Shipping information remains confidential and cannot be changed.
4. Less demurrage.
According to the 2018 Archives of transport study, port delays add about 10% to the cost of imported goods. Since the start of the pandemic, container shipping rates have skyrocketed from $1,514 (January 2020) to $10,839 (September 2021).
With a container tracking system, the situation with queues can be gradually eased. Managers receive statistics and if they see that the carrier is behind the schedule, they offer solutions: a shorter route, a different speed mode, and other measures.
5. Cost savings.
Smart monitoring helps to reduce costs for:
- Defective or damaged goods. The status of the door is checked, so the cargo cannot be damaged or fall out of the box. The carrier will not lose money due to the loss of goods.
- Fuel. The program ensures that the ship does not deviate from the route and arrives at the port of shipment on time.
- Delays en route. As we mentioned above, demurrage increases the cost of goods by 10%. The container tracking system helps to deliver cargo on time.
- Completion of tasks. Monitoring software automates manual operations: paperwork, data collection, customs and sanitary control. The work is done promptly, and delivery is not delayed en route.
For the Brazilian brand Perdigão S.A Company, the implementation of a container tracking system has brought great economic benefits. The company has reduced delivery times by 500%, improved paperwork, customer service, and team productivity.
Source: gocomet.com
Difficulties and risks of implementing a container tracking system
Despite the huge benefits that smart monitoring brings to supply chain participants, there are certain difficulties with its implementation.
- Problems with standardization.
There are no common industry standards for smart container tracking. Accordingly, it is difficult to achieve international recognition of the technology. Standards are needed because they make it easier to implement monitoring software and integrate it with other programs.
The first official standard, Business Requirements Specification (BRS) for smart containers, was adopted by the United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT). The document defines the data elements required for Smart Container Solutions. It describes what a smart container is and what information interested parties can share. But this is only the first step, the work on standardization is in progress yet.
2. Difficulties with the choice of technology.
To understand which technology is better for smart monitoring, it is worth doing a little analysis:
- to mark the routes of the supply chain;
- to identify problem areas in logistics (for example, where containers are lost more often or where delivery is delayed);
- to establish what data from containers are useful to receive.
When the information is collected, it is worth contacting IT service providers. They will suggest the best digital solutions for logistics (barcodes, passive/active RFID, GPS, NFC) and create a container tracking system.
3. Difficulties associated with risks.
The digitalization of maritime logistics is hindered by possible risks associated with control designs software architecture:
Technical aspects
Containers are made from steel. In addition, they are placed in several rows to fit compactly on the deck. There is a risk that the connection between an IoT device and the manager will be interrupted, and the data will be lost or inaccurate. But this problem is solved by choosing the right communication network, which will improve the coverage area and ensure uninterrupted data transmission.
Social risks
Monitoring software automates manual operations, from data collection to monitoring the status of the cargo. Part of workers will become unnecessary, layoffs will follow. This can cause negativity and condemnation in mass media. Therefore, when introducing smart containers into logistics, businesses should consider the consequences. For example, they may retrain employees, plan personnel changes, and so on.
Security threats
Some managers are afraid that the transmitted data can be hacked or replaced by fraudsters. The developer of container tracking systems addresses this issue. Experts think over reliable data protection (access control, encryption, and similar methods).
Conclusion
The combination of a container tracking system with devices and sensors helps owners to control the movement of goods to their destination. The problems of the industry and recent events have shown that logistics companies cannot work blindly. They need to constantly see and control the supply chain. Only then will the order arrive on time, in its entirety, and in good condition.
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