The Impact of Smart Containers on Supply Chain Efficiency
By 2027, smart containers are predicted to represent one-third of the global container market, signaling a continued digital shift in the logistics industry. These cutting-edge containers, equipped with state-of-the-art technology, are able transform how we think about the future of shipping and supply chain management.
Despite not being the industry standard—yet— their potential to improve efficiency, security, and transparency in freight forwarding is clear. This week, we’re exploring the world of smart containers, their innovative features, and the many benefits they bring to logistics today.
What Are Smart Containers and How Do They Work?
Freight forwarders, supply chain managers, and logistics providers are increasing their use of digital solutions every day, to increase efficiency, reduce costs, and improve the security and reliability of their operations.
As a part of this digital transformation, smart containers are becoming essential. Smart containers are standard shipping containers outfitted with various sensors, GPS trackers, and other Internet of Things (IoT) devices.
These devices collect and transmit data in real-time, providing valuable insights into a container’s location, condition, and the status of its contents. This container data is relayed to a central platform, where it is accessible by shippers, carriers, and other stakeholders in the supply chain.
What can a smart container detect?
A smart shipping container can detect several events that might happen during shipping and transmit this information to a platform:
Benefits of Smart Containers
Improved Efficiency and Cost Savings: When it comes to smart shipping, these containers significantly impact supply chains by providing stakeholders with real-time visibility of their cargo. Imagine a scenario where a container carrying perishable goods experiences unexpected temperature fluctuations during transit. For example, Swiss start-up SkyCell raised $62 million in 2020 to create specialised smart container solutions designed specifically to transport pharmaceutical products safely and efficiently.
By optimising logistics operations and enhancing decision-making, businesses can significantly improve efficiency and reduce operational costs by:
Enhanced Security and Reduced Losses: The shipping sector transports freight around the globe but delivering approximately 11 billion tons of goods annually comes with its fair share of risk.
Real-time monitoring with smart container solutions is especially valuable in cases of cargo theft, a persistent problem in global trade.
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Thefts frequently occur when containers are left unattended during transportation or storage. Real-time location tracking makes it difficult for thieves to go undetected because it gives authorities the information they need to track down stolen goods and bring those responsible to justice.
Containers lost at sea due to severe weather pose another threat to the shipping industry. Although the latest 2023 figures from the WSC are positive, just 221 containers lost at sea in 2023, with around a third of those subsequently recovered, from 2020 to 2021, there were 3,113 instances of containers being lost compared to just 779 between 2017 and 2019—demonstrating a significant surge in these types of incidents.
By alerting relevant authorities as soon as a container goes off course or overboard, appropriate measures can be taken promptly.
Improved Customer Service: Smart shipping containers significantly enhance transparency, traceability, and security within global supply chains. These enhancements bring significant benefits to various stakeholders, including customers.
The real-time information flow from origin to destination provides, accurate ETA’s offering reassurance about their shipments, reducing anxieties about potential disruptions, theft, or damage.
The Future of Smart Containers in the Logistics Industry
The maritime sector is beginning to recognise smart containers as more than a niche technology. Maritime research and consulting firm Drewry estimates that by the end of 2021, around 3.6% of the global container fleet was outfitted with smart technology . Drewry also predicts that this technology will be used in almost one-third of all containers by 2027 .
As technology continues to advance, the future of shipping containers, including smart containers, is poised to play an even more prominent role in shaping the logistics networks of tomorrow. As the industry uncovers more ways to utilise IoT, artificial intelligence (AI), blockchain technology , and container monitoring technologies, we are looking at a future with even better functionality and efficiency.
Final Thoughts
With increasing globalisation, more complex trade routes, and growing demand for greater efficiency and sustainability within freight transport systems, embracing this technology is essential, not optional.
By using real-time data insights from smart containers to enhance efficiency and improve decision-making, the freight industry can address some of its challenges head-on.?
At SeaRates we anticipate the technologies needed for safer, faster, and more transparent global trade networks. Explore our digital tools and solutions at SeaRates.com to streamline your supply chain operations.
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