The first query by a telephone call or
email to any shipping and logistics companies on a working day would be regarding
the status of a container or arrival status.
How does Container tracking work?
Most carrier websites enable
freight forwarders, NVOCCs and shippers to track the locations of their
shipments instantly. On average, it takes anywhere from 6 to 81 days to ship a
container overseas and deliver it to its destination. Multiple factors can
impact delivery, from port handling to customs clearance.
Online platforms like INTTRA
offers INTTRA Track and trace with which
customers can access all carrier-provided updates –vessel load status,
departure and arrival information for all your shipments across 50+ leading
carriers and NVOCCs. Their one-click search tool allows customer to to locate
shipments by container number, carrier booking number, bill of lading reference
number, purchase order number, or INTTRA reference number.
Advancements in shipment monitoring
Shipment monitoring technology has
been advancing at a fast pace, resulting in an array of futuristic tracking
devices that do everything from store solar power for five years to communicate
with each other without human intervention. These advances allow manufacturers
and shippers to track shipments, manage inventory, and prevent theft in
previously impossible ways.
While traditional tracking
devices such as radio frequency identification (RFID) and bar codes remain
relevant, innovations—and dropping prices—in cellular and satellite technology
make it easier to secure near-real-time coverage for almost the entire globe.
Companies selecting shipment tracking technologies must balance budget
constraints with a realistic view of the coverage needed.
Ultimately, knowing how to
respond to the data collected matters most. Companies can turn information into
action that can boost the bottom line and ensure a return on investment.
New York City-based
pharmaceutical company Pfizer, the twin goals of cargo security and inventory
management guide decisions about what types of technology to use. The company
employs a mix of real-time tracking devices and those offering point-to-point
information, depending on the asset and route travelled. However, customers may not use real time data
as product’s risk level may not warrant the investment.
VALUE AND RISK ELEMENTS – EQUATION FOR SELECTING TECHNOLOGY?
The equation for selecting
technology includes many variables. Shipments of materials that cargo thieves
covet—such as painkillers with a high street value—might be equipped with the
most sophisticated technology, such as satellite tracking devices, while drugs
with a lower risk of theft or product damage are tracked less intensely.
Likewise, Pfizer keeps a closer eye on shipments moving through high-risk regions
such as Mexico and South Africa than calmer areas.
In situations calling for the
highest levels of security, the options have never been more sophisticated.
Emerging capabilities in satellite and cellular technology have resulted in
increased coverage, reduced costs, and expanded product offerings.
M2M : Satellite tracking systems now generate close to real-time,
location-based data across up to 98 percent of the globe traversed
commercially, says Craig Montgomery, senior vice president, marketing and product
management for Orbcomm, a Rochelle Park, N.J.-based provider of
machine-to-machine (M2M) equipment.
M2M allows separate pieces of equipment to communicate through wireless or
wired networks, frequently without human intervention.
Typically, these devices allow
what is called bi-directional communication. In one direction, satellites track
remote assets, reporting information to a database accessible through a
Software-as-a-Service (SaaS) solution. These systems are frequently
cloud-based, so they can be tapped from any device with an Internet connection.
Tracking is near-real-time, although some areas experience lags, or latency, in
data reporting. Latency lasts anywhere from a few seconds to several minutes,
depending on how many satellites cover the asset's location. In areas where
there are fewer satellites—at the poles, for instance—data reporting is slower.
Meanwhile, M2M also allows
shippers tracking cargo to communicate with the devices, changing reporting
frequencies and investigating alerts generated by attached sensors. These
devices can automatically switch from cellular to satellite using sophisticated
software that monitors the available networks, and chooses the best system
based on coverage and cost.
Cellular, like satellite, offers
real-time data. It is cheaper than satellite, but covers less of the world.
While its low cost can make it a good solution for tracking cargo traveling
through the increasing swaths of the world covered by cellular, satellite
remains the go-to option in remote parts of the world, or for assets that move
in and out of cellular coverage.
Technological advances have reduced
the footprint of communications equipment, making it possible to fit cellular
and satellite components into one device, which keeps equipment costs down. Costs
have also dropped on the communication side, making the dual-mode device a more
viable option.
Meanwhile, bi-reporting
capabilities mean companies can switch how frequently the device generates
reports. Location information for shipments traveling on a U.S. highway might
report once each day. On a ship, reporting might slow to once each week—but if
cargo enters a theft hotspot, updates could arrive every 15 minutes.
THEFT-PREVENTION MEASURES
In addition to location tracking,
M2M offers measures to tighten cargo security. Locking devices not only track
cargo, but also sound an alarm if someone cuts the bolt. The devices run on
ZigBee, a wireless communication system that uses radio waves to link M2M
technology.
One security option wireless
technology offers is creating a "slave/master" mentality. "Place
several devices into pallets, and they will communicate with each other,"
Montgomery explains. "The pallet devices also communicate with both the
master tracking device outside the pallet, and the cellular-enabled bolt
mechanism."
Companies track the data—which
appears on a map application such as Google Maps—in a SaaS program offered by
their technology provider, or through their own software system. "They are
able to see the shipment's location," Montgomery says. "Shippers can
access different perspectives, such as a satellite view of the land and ground
schematics, or view a road-based traditional map."
Companies can run queries to
gather information about device location, asset idles, and cargo loading
status. Battery technology has improved, too, with solar-powered global
positioning system (GPS) M2M tracking devices now available. One of Orbcomm's
devices measures just one inch high, and is thin enough to fit in the ridge of
a cargo container. The device—which offers near-real-time shipment visibility
and the ability to change reporting frequencies—features a battery that runs up
to five years in total darkness.
CONDITIONS AWARENESS
Sensors that detect light and
temperature, in addition to communicating real-time location data on cellular
networks, mark another frontier. The ability to detect light is an important
security feature, with the sensors reporting if a package has been opened prior
to delivery. If a breach occurs, shippers quickly receive an email
notification, allowing them to act promptly.
The sensors enhance security by
working with two types of geofences: route-based and time-based. This
capability gives companies the option to set durations for each leg of the
journey.
If a shipment does not meet the
specific time measurement for that part of the trip, it could indicate theft or
another problem with transportation. In both cases, shippers receive
near-real-time alerts via email if a shipment breaks the geofencing parameters.
Sensor-based technology is
relatively new. SenseAware launched in 2009, and is now available in 20
countries, including the United States, Canada, Scandinavia, much of Europe,
and parts of Asia. Companies purchase a subscription that includes equipment,
connectivity, and access to the software system through which users can track
shipments.
The program builds on the
Internet of Things (IoT) concept commonly referenced among supply chain
technology experts. In practice, IoT refers to the rising number of physical
objects traceable through the Internet. IoT posits that one day, all objects
will be traceable through the Web, and able to communicate with each other.
MOBILE ON THE MOVE
Mobile phones comprise part of
the IoT philosophy, with new possibilities emerging—particularly with apps,
says Doug Litten, supply chain IT program director for Leidos, a Reston,
Va.-based technology consulting firm.
Leidos is working with mobile
apps that allow employees to input cargo-related data. The app then pushes data
into a central database, viewable by other authorized parties. Litten predicts
the use of mobile devices in logistics will increase during the next few years,
although related security and encryption still need improvement.
Even with sophisticated
technology available to provide visibility, older technologies such as
RFID—first developed in the 1940s—is still relevant today.
When a cargo container or pallet
tagged with RFID moves through a "read zone"—a portal equipped with a
special reader—the reader captures the tag's information using radio
frequencies. Away from reader locations, another technology, such as satellite
or cellular, must provide coverage.
While passive RFID has no
internal source of power—essentially falling asleep when not activated by the
reader—a battery powers active RFID. The active version's radio frequencies
communicate at longer distances than the passive version, and, in some cases,
it can initiate communication with readers or other tags. Passive RFID costs
less and remains more widely used than active RFID—particularly for
high-volume, low-risk cargo.
Because passive RFID only works when in close range to a reader, it is
often categorized as a solution best suited for warehouse management. The
frequencies for either type are not widely standardized save for select
industries, which has also limited its use.
Despite its drawbacks, dropping
RFID prices lead O'Boyle to predict a 30-percent surge in the companies using
it over the next five years. While passive RFID tags cost 50 cents or more a
few years ago, prices today are as low as 15 cents. RFID reader price tags have
also dropped about 30 percent over the past few years. Lower prices may spur
more users to adopt RFID, which will lower prices even further.
RFID technology continues to
evolve, offering new uses. Some companies, for example, are beginning to use
RFID in container seals. "Not only will we know that the seal has been
broken, but a date and time stamp recording reveals when it was broken,"
O'Boyle says. Users can also program the technology to limit who has the
authority to access containers.
No matter how far other
technologies advance, RFID will remain relevant, because its low cost and
accessibility make it a good option for many circumstances. Likewise, bar
codes, perhaps one of the simplest tracking mechanisms, are expected to retain
their place among more sophisticated technologies. "Most supply chains are
not fully RFID-capable, so bar codes are especially important for capturing
data, particularly at the unit level," Litten says. "Bar codes are
inexpensive, and they do the job."
Each type of tracking technology
offers a specific use. While a cargo container might be outfitted with GPS,
RFID more effectively tracks units or pallets. "RFID is more
cost-effective than active GPS-type tags, because they cost a few cents instead
of hundreds of dollars," O'Boyle says.
NO MORE THAN IS NEEDED
Depending on a company's needs,
real-time data provided by GPS may not even be necessary. Companies frequently think they
need more visibility than they actually do. While hourly updates might seem like
a good idea, point-to-point may suffice.
Visibility requirements may vary
depending upon why a company needs to know where its assets are. Needing
up-to-date information from a financial reporting perspective or because the
location of inventory drives procurement decisions, for example, might compel a
company to invest in a comprehensive—and expensive—solution such as satellite.
Shippers should pay for the
visibility they need today, keeping in mind that more detail is always
available. For many companies, daily updates received through email, or by
accessing a software system, represent a vast improvement on calling carriers,
searching for cargo, and relying on data that might not even be accurate.
With so much data potentially
available, companies must focus on making the best use of the information.
"It's not just a question of knowing the shipment location, but
also considering how that status impacts the business," says Kim Le,
director of CargoSmart North America, a Hong Kong-based SaaS shipping and
logistics company.
CargoSmart tracks information from its network of more than 30 ocean
carriers and more than 22,000 groups of customers—called groups because each
involves the customer and its supply chain partners. The company analyzes data
such as carrier schedules uploaded by parties in its network; weather reports;
historical information; and even news events, such as whether workers at a particular
port are striking, which could delay shipments.
Truly meaningful data identifies
events while they're happening, and allows companies to change routes or find
other solutions to mitigate delays. Shippers can't change their supply chain
unless they have enough lead time to make a difference.
For example, in the case of a
company whose vessels were rerouted from Long Beach, Calif., to Mexico,
learning of the change early was critical. "We saw that shift, and alerted
the shipper," Le says. "The company was immediately able to arrange
trucks to meet the ship in Mexico and avert delays."
Increasing data availability is
also changing how companies manage shipments. Information supplies the power to
manage by exception—building rules, enforced by technology.
"Businesses can choose to be
alerted if a certain asset or device hasn't reported in a specified amount of
time, or reports from a location where it should not be," says Lee Lanucha,
senior director of platform product management at Numerex, an Atlanta-based M2M
provider.
Using data, companies establish
trends and prohibit actions deviating from the norm. This enhances security,
and reduces staff time spent tracking assets.
"In the past, reports might
come in every 15 minutes stating that all conditions were stable," says
Orbcomm's Montgomery. "But that eats up a lot of time and resources for
dispatchers, who only need to know if the shipment goes off the intended
path."
Technology not only provides
fast, precise coordinates for latitude and longitude, but it also provides
rapid communication with law enforcement authorities in case of theft.
"They can catch the thieves, and get the materials back," Montgomery
says.
The array of available shipment
tracking possibilities might seem daunting. When examining options, it helps to
establish specific goals. It is recommended that businesses
start small, experimenting with a portion of their supply chain and expanding
from there.
Another decision involves whether
to purchase equipment outright, or work with a solutions provider. Each method
offers benefits. Companies that purchase technology can place it in cargo
without even notifying the carrier, which can boost security.
Alternatively, when working with
a technology provider, companies needn't worry about investing in upgrades.
"The technology changes fast—what you use today could be outdated in two
years," Elrod says. Companies that make large capital expenditures for
equipment are less likely to invest again a few years later.
Despite all the advances, no
matter how sophisticated the solution, no perfect tracking technology exists.
Companies should continue to expect some holes in their tracking. It would be
nice if full visibility was possible 24/7- But all technology has some
limitations!
Despite those limitations, every step toward better supply chain
visibility is a step in the right direction.
