As the first major real-world test rolls out, 'smart' container technology has the potential to become the norm in container shipping, says Rebecca Moore
Two of the most recognised names in container shipping are taking part in a project, marking the beginning of a journey that could see 'smart' box tracking become standard practice.
CMA CGM and MSC are each equipping 50,000 containers with technology from French company Traxens to create smart containers.
Giving the gift of intelligence to these inanimate boxes is pretty simple. The smart technology consists of a tracking and environmental conditions monitor affixed permanently to each individual container and set to record data including GPS position, temperature, impact, movement and each door opening. CMA CGM and MSC access the data generated via Traxens’ web portal hub or through an API.
Traxens maritime business unit deputy director Thomas Nouvian offered me a host of reasons why smarter containers mean smarter business operations – enhanced supply chain visibility, reduction of in-transit cargo problems, lead-time reduction, quicker corrections for missed transhipments and crucial information on cargo and cargo-handling quality such as temperature, humidity and shocks (as occur when containers are dropped from a height).
Ultimately, that adds up to what is, again, a pretty simple business case. As Mr Nouvian put it "Using a smart container means that [operators] know at a click of a button the exact number of containers in different depots and can better capitalise moving their inventory of containers."
Better capitalisation is likely impetus enough for smart containers to become the norm in the industry, but if the concept needed extra help to gain broader uptake, more is likely close at hand.
Regulation could be in the pipeline soon, and Traxens believes smart containers will become mandatory for commodities such as dangerous cargo. Security concerns offer another raison d'etre for the technology.
Being able to monitor when containers have been opened in unexpected locations can alert shipping lines and beneficial cargo owners (BCOs) to potential security breaches. MSC is looking at implementing smart containers for dangerous goods, according to Mr Nouvian, offering crew and vessels an added safety precaution.
Customs authority involvement adds further incentive. Traxens is in talks with customs authorities around the world in an attempt to implement the ‘green lane’ concept whereby smart containers are expedited through customs due to their clear and easily auditable trail of data.
A further driver is consolidation and the fact that using smart containers helps carriers provide a value-added service over and above selling a commodity. MSC is starting to put together a dedicated smart container service where the shipping line’s teams can use the data and proactively inform BCOs if there are any problems.
Given the evidence, I am convinced the appetite for using smart containers is set to grow and likely grow quickly. And now that behemoths like CMA CGM and MSC are dipping a big toe in the water, the chances of the technology's success are even better.
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