As we head into the future being hyper-automated, so does the world, and in this case, numerous businesses. The logistics and transportation sector, Is bound to be the hotbed of autonomation. With the utilization of smart containers, the supply chain is about to change. Thanks to digital sensors and GPS tracking, smart containers make the supply chain secure and able to be tracked at a moments notice. Not only location tracking but also control on temperature and humidity, locked security, and instant damage detection and so much more.
What Is Smart Container
Smart containers are IOT technologies being harnessed that allow a container to communicate with its environment. These containers have devices and sensors that have the ability to monitor temperature, humidity, pressure, and location, among other conditions. The information collected from these sensors can be sent to a cloud-based application which can be viewed by the transport management staff from any geographic location on earth.
How Smart Containers Work
Various devices are present in smart containers which helps them to be enhanced and undisturbed. Be it any device or Sensor, they are a must as they enhance the thermal images in addition to amount of images captured which is crucial as the temperature, humidity, and pressure have an impact on the security and quality of the cargo supplied. The sensors record this kind of information and send it to the relevant platform for further analysis and processing. Then appropriate alerts can be sent, should there be any risk or unusual observations made.
The smart containers also incorporate GPS and other location tracking technologies to inform the user on the position of the container in real time. This information might help logistics companies to refine their routes, enhance their delivery speeds and cut their transportation costs. More importantly, smart containers are also able to avert the possibilities of theft, loss or damage to the cargo since they are able to issue alerts when they sense any interference or unauthorized access.
Costs for Tracking Dry Containers:
While similar technologies are already in use in systems such as refrigerated boxes or reefers, this has not been the case for tracking and monitoring equipment in dry cargo containers designs as incorporating such technology has not been economically viable with estimates suggesting there are over 60 million such containers and looking at the infrastructure and the economics of replacing as expendable parts like batteries with a constant frequency.
Nonetheless, the modern day smart containers equipped with energy-saving technologies that are now available have begun to stir interest in their incorporation into container type transport systems which are presently highly inefficient and unreliable.
Number of Smart Containers:
In 2022, approximately 5% of the global container equipment
fleet was equipped with smart technology devices. This figure could increase
eightfold in the next five years.
In August 2022, Hapag-Lloyd announced the installation of tracking devices on most of its dry container fleet, with 200 depots worldwide. They expect to fit detachable units on around 1.6 million standard containers by the end of end-2023. These tracking devices will transmit data in real-time, supply location data based on GPS, measure ambient temperature, and monitor any sudden shocks.
Solar power for Smart Containers:
Orbcomm, a US-based tracking technology provider for
reefers, supplies the tracking devices that can be installed in less than a
minute and feature intelligent solar power management, telematics capabilities,
and an impressive battery life, supporting a range of wireless sensors using
Bluetooth 5.
Another large container carrier has taken a stake in Traxens, a Marseille-based smart container company launched in 2012. MSC, Maersk, and Cosco have also acquired shareholdings, with orders for 50,000 units each.
Advantageus of Smart Containers
Logistics managers are able to observe the cost of transportation and have an upper hand in reducing it even further thanks to supply chain visibility. This in part is made possible by the application of smart containers inToday’s modern transportation systems. Smart containers are also able to increase monitoring capabilities making it easier for managers to observe the location, temperature, and humidity of the products, or containers being transported. All these factors ensure that necessary actions can be taken in case any abnormalities or deviations are observed. This healthy practice minimizes the chances of goods going bad thereby helping avoid these losses hence cutting down costs in the process.
The need for smart seams facilitates sustainability by reducing the carbon footprint associated with logistics operations. Due to its design, the usage of smart containers helps reduce the need for manual intervention, therefore the chances of human error making an impact on the operations are minimal. Overall productivity is therefore improved.
This leads to efficiency as there's an assured improved level of service which is further emphasized as profits are increased as wastages from perishable items are managed hence improving the supply chain.
Moreover, there is increased protection and security on the items transported due to smart containers. Logistics managers today are able to obtain real-time data on the location of the container thanks to modern GPS technology and as a result, the risks of theft or pilferage are greatly reduced. Also, non-removable seals and locks further increases the chances of security enhancing the level of safety on the items being delivered.
How Smart Container Use Becomes Widespread
Traceability technologies are evolving rapidly, and getting it right can result in significant rewards. Products and goods in transit over the value spines can be traced so that the right products get to the right places at the right time, speedily and with more customization, as a way of lowering the costs of doing business. Companies and the let they serve Stan. Remembering smart containers. However, this leads them to perform with steady sustainability goals in mind. Despite that, the smart device is expected to become more of a norm.
However, companies can rest assured that smart containers will have a strong positive impact on the global supply chain. Transportation firms can enhance their operations thanks to their funds since they can determine where their cargo is and its condition in real-time. It can assist enhance customer service and lower costs due to this tracking system. As a result, smart containers are also effective in reducing waste by reporting quality issues and damages of the cargo. This assists in bettering the logistics industry’s sustainability while also reducing its environmental footprint.
Impact of Smart Containers on the World Supply Chain
Smart containers are set to have a significant impact on the
world supply chain. Logistics companies can optimize their operations with their ability to provide real-time information about the location and status of the cargo. Thanks to this tracking system, it can reduce costs and improve customer service. Moreover, smart
containers can also help reduce waste, as they can detect and report any
quality issues or damages in the cargo. This can help improve sustainability
and reduce the environmental impact of logistics operations.
More than that, smart containers are also poised to enable new business models and opportunities. For example, logistics firms can provide additional services, such as instant cargo performance monitoring, real-time quality management, and integrated supply chain performance tracking. This can enable their market differentiation and assist.
Challenges and Limitations of Smart Containers
No doubt, there are also challenges and drawbacks facing smart containers too. For smes companies involved in logistics, the cost of the smart container technology implementation and maintenance may be prohibitive in terms of their adoption. Also, for logistics companies that operate in more than one region or use more than one carrier, a lack of standardization and interoperability between different smart container systems may also create problems.
Additionally, there are also issues related to data privacy and security with the use of smart containers. These containers collect and transmit sensitive information such as cargo’s location and its contents and this makes them vulnerable to data breaches and cyber attacks. To mitigate these concerns, there is a requirement to put in place appropriate security measures such as encryption and authentication protocols by smart container manufacturers and logistics companies.
Future of Smart Containers
Not withstanding the challenges and limitations the prospects of smart containers in future are very bright. As more people integrate the technology of the internet and other digital technologies, smart containers technology becomes cheaper and more available. In addition, organizations like the Digital Container Shipping Association (DCSA) are promoting and working to unify smart container technology which in turn can lead to better interoperability and reduced costs.
In the years to come, it is realistic to anticipate that the level of smart containers will only get higher. For example, several manufacturers of smart containers intend to implement blockchain technology in order to make the supply chain more secure and transparent. Other firms are building robots in the form of container ships which can carry and move cargo without the needing people.
Conclusion
The implementation of smart containers is changing the very way logistics and supply chain management is performed. They gather data and information that is useful to logistics management and helps them make decisions, which in turn improves the quality of goods transport, lowers costs of movement and enhances the visibility of supply chains.
In addition, the use of smart containers helps to enhance sustainability and reduce the emissions of logistics operations. In conclusion, smart containers are the bright future for logistics and supply chain.
Written by: Aykut Alan
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