Smart containers are a game-changer. What does it mean for you?

Maersk Line has over the past years equipped more than 270,000 refrigerated containers or ‘reefers’ with Remote Container Management (RCM). This technology allows us to track in real time the exact position of the container, its temperature and humidity and potential off service. We went live operationally in Q3 2015 but are already seeing potential for the wealth of data available. RCM enables greater visibility over cargo, and more importantly, a significant reduction in damaged cargo.

According to the Food and Agriculture Organisation of the United Nations, which conducted a landmark study on food loss and wastage around the world in 2012, around 30% of the food the world produces is lost each year. Wastage happens at a variety of stages in the food supply chain – during agriculture, post-harvest for arable goods or slaughter for protein, processing, distribution and consumption – but this message is clear;

The need for a stable and reliable cold-chain remains important for our customers.

Having been the market leader in this segment for many years – Maersk Line has shipped chilled cargo since 1936 – we have recently seen the competitive landscape around us changing quite dramatically. A number of container carriers have also been making investments in their reefer fleets and elevating their technical capabilities – in addition, the break-bulk carriers have received a second wind with the lower bunker prices. Our customers are benefiting from these changes, but also expecting carriers to further develop their service offering.

Customers are asking for better cold-chain visibility

The RCM technology will give full visibility of reefer containers and cargo throughout the cold chain, reduce constraints from human errors and allow for safer operations by reducing the number of physical inspections needed at the terminal. Today, more than 59% of claims stem from malfunctioning reefer units, poor supplier handling of off-power periods and wrong temperature set points; all of which can either be partially avoided or mitigated proactively with live data. Data collected from intelligent containers is reliable and makes it possible to act fast, a pre-requisite when transporting perishable goods. Previously, live monitoring was a manual, time consuming and expensive process, potentially open to human error in collecting the data. 

Customers are asking for better cold-chain service

Today superior equipment and availability is an integral part of the reefer value proposition but really considered table stakes: Customers expect better cold-chain handling and top-notch service. Given the segment complexity this requires ongoing investments in systems and training of key staff in Sales, Customer Service and Operations – as well as internal alignment of processes. We all need to work hard to ensure that the cargo we are trusted with by our customers is being handled with the understanding it requires by everyone involved. Great expertise goes hand in hand with great equipment. Maersk Line invested in 30,000 new reefer containers in 2015. We simply have to upgrade our fleet on a continuous basis to ensure, that it meets the expectations of our customers.

Customers are asking for cold-chain expertise-based consulting

Having shipped chilled commodities for the past 80 years, Maersk Line has acquired decades of learnings. Customers are often asking for these insights to support their ambitions of venturing into new markets and seizing new business opportunities. Carriers and customers engaging in such commercial partnerships have of course a huge potential – pushing the current boundaries by e.g. co-developing refrigerating techniques. Long term partnerships – and long term contracts – are critical enablers to facilitate true expertise-based consulting.

How did we enable trade between Ecuador and China? Check out this short video explaining:

Customers today are asking carriers for innovative reefer products and features that ensure their commodities are treated with the utmost care. Proper preparations and meticulous cargo handling combined with state-of-the-art reefer containers specially designed to maintain optimal product temperature are the cornerstones of leading carriers’ reefer services. The segment is constantly evolving – and features a great opportunity to deepening and co-develop new solutions with our customers.

What role do you think technology has in the supply chain? Let me know in the comments section below.