Smart Shipping: Internet of Things and Sensor Technology in Shipping
More goods, longer routes, greater complexity, and countless data silos continue to challenge global container shipping. Technological advances are having a huge impact on supply chains, providing visibility where it is most likely to be lost. To locate cargo, predict risks and optimize supply chain processes, there is no way around innovative products today. Keep reading to find out how shipping companies and the entire industry can benefit from using IoT technology.
Table of Contents
Smart containers equipped with IoT (Internet of Things) sensors are currently proving to be one of the most innovative solutions for supply chain visibility without any blind spots. Alongside other technological developments, such as the automation of entire ports, IoT usage is also ensuring that the shipping industry keeps evolving.
What is a smart container?
A smart container is a standard shipping container equipped with IoT technology: Sensors transmit real-time data, for example about the container's location, temperature, humidity, and other key cargo parameters. Communication protocols send this data to a secure cloud-based platform that uses machine learning-based algorithms to detect important events and manage processes. Users can then access various information, such as asset data and the aforementioned parameters, through web-based applications.
Hapag-Lloyd for example uses IoT devices from Nexxiot and Orbcromm to provide location data on container or shipment level in our digital visibility tool Live Position.
The importance of IoT shipping and smart containers
When Malcolm McLean invented the first standard shipping container in 1956, he took a giant leap forward in the time efficiency of loading and unloading ships. Today, almost 70 years later, active hardware devices are once again transforming container shipping.
The introduction of IoT sensors and the use of data collection software has ushered in a new era: Smart containers with sensor technology enable detailed condition monitoring and accurate real-time tracking for all modalities. Additionally, problems such as theft, smuggling, spoilage or damage can be avoided or prevented.
What are the benefits of intelligent containers?
Smart containers bring efficiency and security to intermodal transportation. The fast-paced modern world demands efficiency, accuracy and sustainability. The use of IoT Shipping helps achieve these goals and provides the following benefits:
1. Visibility and control: Smart containers provide visibility of the status, location and condition of goods and containers. This visibility enables supply chain managers to make informed decisions and optimize resource allocation.
2. Streamline operations: Implementing IoT sensors streamlines supply chain processes. Smart shipping appliances automate manual processes and can reduce human errors, resulting in smoother processes, improved supply chain planning, faster transportation, shorter lead times and cost savings.
3. Sustainability: Effective tracking also has a positive impact on sustainability goals. Optimizing and reducing transportation routes minimizes the carbon footprint, which also translates into lower operating costs and more environmentally friendly operations.
4. Customer satisfaction: In the digital age, customer expectations for accurate and timely delivery are also increasing. Tracking with IoT support enables customers to always monitor their goods and increases transparency which leads to more trust.
5. Traceability: A special benefit of IoT sensor technology can be found for specific industries such as pharmaceuticals and food, that have strict regulations. This precious cargo has to be kept in certain conditions and IoT technology ensures that these conditions are monitored and kept throughout the entire cargo journey.
6. Data-driven decision making: By analyzing data already tracked in Smart containers, patterns can be identified and used in the future to improve routes, inventories, maintenance schedules, and long-term cost effectiveness based on data.
Status quo: Where does the shipping industry stand when it comes to IoT?
Smart containers with IoT sensors not only guarantee access to the exact location of the goods, but also ensure that quality standards are met during transport. For example, you can understand whether your cargo is in optimal condition - these insights can lead to proactive adjustments to minimize the risk of damage or delay.
According to a Drewry research, 25% of containers worldwide are set to be equipped with some sort of IoT device by 2026, opening the door for further innovation. Therefore, it is not surprising that a few shipping companies are already transforming themselves to take advantage of IoT Shipping. And Hapag-Lloyd is one of the first carriers to offer IoT enabled smart containers on a global scope. This development can no longer be stopped. More and more shipping companies will equip their containers with appropriate devices, which in turn should also reduce the cost of the devices in the medium term. This will be accompanied by a further increase in the use of Smart Dry Containers in particular – our digital tool Live Position is a prime example of this equipment and provides you with real-time visibility data. The number of smart reefer containers is estimated to increase sixfold to more than 10 million in the next five years. At Hapag-Lloyd we also offer a digital solution for smart reefer containers: HL Live.
Smart containers are shaping the future of shipping
The use of smart containers is giving companies new insights into their increasingly complex supply chains: tracking location, arrival time, and physical conditions such as temperature offers transparency and increased efficiency. The data generated by IoT devices used in shipping also makes it possible to identify weak points in supply networks: For example, where bottlenecks tend to occur or where cargo is often damaged along the way. In addition to live visibility of status and location, smart containers with IoT technology help meet sustainability goals by optimizing the supply chain and providing transparency to customers.
In the future, the number of smart containers will continue to increase - those market competitors who have not yet equipped their containers with IoT sensors will have to digitize themselves in the long term to keep up with the times and survive alongside the competition.
Hapag-Lloyd was the first global shipping company to introduce comprehensive sensor technology to monitor the location, status and movement of all standard containers in real time. The goal is to maintain this position and continuously expand it to offer customers long-term added value and minimize risks in container shipping.
© Hapag-Lloyd AG