Track and Trace in Shipping - What is What and What’s the Difference
Knowing the precise location of your cargo at any given time is essential for efficient logistics. This is where Track and Trace systems come into play. In this article, we’ll explore what Track and Trace in container shipping is, how it works, and how it has evolved to a main tool in logistics.
Table of Contents
What Is Track and Trace?
Track and Trace is a system used in container shipping to monitor and report the movement of cargo from its point of origin to its final destination. By providing timely updates of a container’s location, Track and Trace allows all parties involved in the supply chain to track the status of shipments, anticipate delays, and plan operations accordingly.
The difference between “Tracking” and “Tracing”
Though often used interchangeably, “tracking” and “tracing” refer to two different aspects of shipment visibility:
Tracking: This involves the real-time or near real-time monitoring of a container’s or shipment’s current location. It’s the process of observing where the cargo is at a particular moment. For example, tracking lets you know if your container is currently on a vessel, at a transshipment hub, or awaiting customs clearance.
Tracing: This refers to the ability to look back at the container’s movement history. Tracing allows you (and other parties) to review past events, such as when the container was loaded, unloaded, or delayed. It provides a full record of the journey, which can be useful for troubleshooting issues, investigating delays, or verifying that the cargo followed the correct route.
In summary, tracking gives you current information of the location, while tracing provides a historical view.
How tracking and tracing tools work
Track and trace tools rely on a combination of technologies, including GPS, RFID (radio-frequency identification), and electronic data interchange (EDI). These technologies allow shipping companies and logistics providers to update the container's location as it moves through different stages of transportation—whether it’s on the ocean-leg, in ports or terminals, or on the road.
Typically, each shipping container is assigned a unique identification number (commonly referred to as a container number). This number is scanned and recorded at key points along the shipping route, such as:
- At the terminal during loading and unloading
- When the container enters or leaves a port
- During customs clearance processes
- While the container is in transit, either on land or at sea
You can access this information through the Tracking solution in the Online Business Suite, where you receive regular updates about the container’s journey.
In 2024 we at Hapag-Lloyd even took a step further in terms of visibility and introduced our visibility solution Live Position. The tool provides you with real-time location data for your shipments based on IoT devices attached to the containers.
Why tracking and tracing is such a key factor in shipping
Track and Trace systems have become an indispensable tool in container shipping for many reasons. Below you’ll find the most important factors that will show why using tracking and tracing is vital for supply chain management.
1. Improved visibility
Track and Trace solutions provide you and other involved parties with complete visibility over the cargo, allowing you to monitor almost every step of the shipment’s journey. This is crucial for maintaining control over supply chain operations, ensuring that everything is moving according to schedule, and also to quickly identify potential delays or disruptions.
2. Enhanced efficiency
By having access to location data, shippers, carriers, and forwarders can improve their overall operational efficiency. If a container is delayed due to port congestion, for instance, you, as the shipper, can make adjustments to the delivery schedule or coordinate with other stakeholders in advance, minimizing downtime and reducing overall costs.
3. Better customer service
Track and Trace systems empower you to provide better service to your own customers. By sharing near real-time shipment information, you can offer more accurate delivery estimations and quickly address customer inquiries regarding the status of their shipments. This level of transparency fosters trust and improves customer satisfaction in the long run.
4. Risk mitigation
It also helps mitigate risks, such as theft, misrouting, or damage to cargo. If a container deviates from its planned route or is delayed, immediate action can be taken to resolve the issue, minimizing the financial impact on both the shipper and consignee.
Conclusion
Track and Trace systems have helped to shape container shipping by providing near real-time visibility and historical records of a shipment’s journey. Whether you’re a shipper looking to maintain control over your supply chain or a consignee awaiting your cargo, the ability to track and trace a container is invaluable in today’s logistics landscape.
If you’re looking to streamline your container tracking process, explore our Tracking tool and our real-time visibility tool Live Position, which both offer a comprehensive shipment visibility at your fingertips.
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