Boosting security and transparency in shipping

Boosting security and transparency in shipping
December 8, 2022 https://splash247.com/boosting-security-and-transparency-in-shipping/

Container tracking and sensor technology are cost effective means of consistently increasing security, operational efficiency, and sharpening the competitive edge of first moving vessel operators, writes Christian Allred from ORBCOMM.

It has long been said that shipping requires more transparency in its operations, particularly when it comes to containers. Being able to pinpoint where your cargo is at any given time, and tracking historical trends, not only helps to optimize operations, but allows for greater monitoring of the security and conditions of the cargo throughout the journey, which opens up myriad business benefits.

Detailed cargo data has long been a blind spot for the industry. In the absence of reliable data, it’s difficult to improve upon operations, from reducing your cargo’s CO2 footprint to ironing out pinch points across the supply chain.

The business case to adopt container monitoring technology is clear: dry container tracking solutions will help improve customer relationships for ship operators, who will be able to provide charterers and beneficial cargo owners with unmatched visibility of their shipments. Knowing when a box has been opened unexpectedly increases security oversight, but such monitoring systems will also improve operational efficiencies, boost transparency in the supply chain, improve relations with insurers and encourage best practice by container handlers.

Monitoring technology has already been tried and tested in niche markets such as refrigerated containers where the environment for perishable goods must be tightly controlled. Although there has been a reticence to adopt this technology for the dry container market – ostensibly due to a lack of demand from customers and the high price point for such services – this is now changing.

The increased pace of digitalisation over the past few years, partially spurred by operating conditions during the COVID-19 pandemic, has led to a greater understanding of the benefits of data from and transparency in the supply chain. At the same time, fleet management and sensor technology has evolved in leaps and bounds and become far more affordable – and can go far beyond AIS for location tracking.

This is not future gazing, but rather current capability for technology.

We – and some of our competitors – have developed container tracking solutions for the traditional dry container market that provide visibility and traceability for shipping lines and their customers. The solution comprises of tracking devices, sensors, mobile apps, connectivity and cloud-based platforms. The no-maintenance, durable solution can record when an internal door sensor opens and closes to notify of tampering, unauthorized access or unscheduled loading and unloading.

Impact detection data can pinpoint where and when cargo damage occurs and protect against insurance claims. Additional real-time information including ambient temperature data allows back-office and onshore teams to track the temperature around boxes, who can then alert crew to a sudden rise in temperature, before a serious incident occurs.

For those utilising the solution with our VesselConnect network on vessels, crew can also check and monitor the status of all the boxes on board, making it far easier to intervene if an anomaly is detected. The same should be true for other third-party platforms that are programmed to manage data from such equipment. This kind of technology helps to improve safety and transparency along the entire supply chain.

As we move into an era where ESG and sustainability are of increasing importance, this type of technology can deliver greater accountability for our emissions. Container monitoring will allow users to track the route and journey time of the cargo in an individual container regardless of the mode of transport (depending on the provider). This will mean that the emissions associated with the cargo being transported can be measured irrespective of whether the container is on a truck, on a train or onboard a vessel.

Location data can be analysed in real-time and through a historical lens and can be utilised for route optimisation and to help with measures to reduce emissions. Such data will be vital for demonstrating a company’s environmental credentials as part of our ESG responsibilities. Customers, the general public, and prospective employees, all want to know that they are dealing with companies that not only talk the green talk but can prove they walk it too.

Telematics technology in containers could also have a profound impact on insurance claims and make liability issues much easier to handle. Like a black box in an airplane that records vital data to understand why an incident occurred, or event data recorders in commercial vehicles that can track speeds, hard stops and daily activity of a truck, this technology will make it easier for owners to identify when and where a container has sustained damage.

If, for example, damage occurs to products inside a container caused by a drop or collision that happens in the port, owners can show the time and location of the incident and ensure they are not liable for any damage claims. This level of transparency and accountability is particularly important when transporting expensive goods such as laptops or phones, which not only have fragile components such as screens, but are also equipped with lithium-ion batteries that cannot go above a certain ambient temperature.

Security benefits also abound since sensors can track if a container has been tampered with. Such technology could prove vital in cases of people smuggling or drug trafficking. Knowing when and where a box was opened will go a long way to resolving such issues. Automated alarms if a container has been unexpectedly opened in a container yard or onboard could alert crews to the presence of thieves attempting to steal goods or that of humans being trafficked and promote a speedy response.
The ability for vessel operators to offer this level of data transparency and security assurances to their customers lays the foundation for container monitoring to make the transition from best practice to standard operating procedure in the near future. And there is no doubt that operators who are early adopters – such as Hapag-Lloyd (who are slated to deploy this technology as of end-2022) – will reap the cost and reputational benefits of future proofing their container assets.