Shippers and third-party logistics service providers have a clear choice: Align with carriers – either truck, rail, or ocean- who have deployed security and visibility technologies across their entire network or take increased risks by using carriers who do not provide these services. Cargo theft is a growing, global threat to the integrity of the international supply chain, and it has entered all modes and aspects of trade and trade networks.
Real end-to-end visibility and proof of security across all modes is just now starting to exist in the market, but only a few carriers are now deploying telematics in their fleet to provide the next layer of visibility and security. These are the partners that will grow market share and differentiate their services by giving their customers-you, the shipper, another layer of solutions to mitigate risk and deter theft.
A bonus for the carrier is that the carrier also gains better utilization of their equipment by using supply chain optimization tools, built to determine real dwell times. Demurrage disagreements dissolve immediately in the face of superior dwell tracking technology, and fleet utilization improvements clearly offset the cost of implementing the technologies which in parallel demonstrate to shippers that the carrier is committed to visibility and security as a service.
The president of one of the top 10 ocean carriers recently commented on a webinar that the telematics device that his company has fully deployed across its fleet provides proof of the visibility/location of the conveyance in accurate detail. He went on to share that these device capabilities have already created an advantage that will allow his company to capture more significant and higher volumes of shippers’ cargo. He expects this competitive advantage to remain secure for at least another 2-3 years, as their nearest competitors are only partially deployed across their ocean fleet.
By utilizing a telematics device, the company can assure its customers that their cargo is secure, and where it is located at key milestones in the supply chain. It also can benefit the company by indicating where and when company assets are underutilized, which could contribute more revenue to its bottom line. This is a win for this carrier, and a clear differentiator for their services. Once customers learn how to better use the data, they will benefit across their enterprise systems and see returns in profit and customer retention.
In a separate streaming video conversation about telematics by another carrier, it was documented how valuable these services are to customers. Asked if customers were willing to pay a premium for location, condition reports, and monitoring, the audience response was overwhelming, indicating a willingness to pay over $50 per trip to have access to these supply chain visibility details.
You no longer have to choose between deployment of telematics or business as usual. Visibility through telematics is a service that must be provided by carriers (ocean, rail and truck) who are planning for a thriving future. The alternative is bleak. While technology is offering visibility details of milestone throughout the global supply chain, companies need to investigate and select the best technologies that fit their needs. Today, that must include enhanced visibility through redundant communications methods such as cellular/GPS and satellite services, and the agility to toggle between these systems. It is important to analyze the system’s ability to provide functions such as:
- store and forward messages if/when the unit is compromised or does not have line of sight
- IoT mesh or LoRa capabilities that allow the units to network together to support timely reporting, and
- tracking tools to document variances in routes, and
- dwell time reporters that document and locate underutilized conveyances that could be put to work and earn income.
- OTA updates to firmware and software
Furthermore, visibility alone cannot meet the growing demand for proof of security across global supply chains. Every shipper is facing new and changing threats and searching for solutions to prevent loss, damage, and theft. Responding to these threats requires sophisticated technologies and redundant communications systems. Sensors that provide proof of breach and capture images of the breach are all now necessary systems to alert anomalies and capture security and risk details.
Also, sensors that reliably detect and report on the status of the cargo inside the box (light, temp, humidity, accelerometer, CO2, ), and other sensors that provide proof of the integrity of the conveyance (shock, heat, battery) are now critical! Futuristic sensors that indicate illicit activities inside the conveyance (fentanyl detection, CO2 and ammonia sensors for human trafficking sensors) are the Next Gen tools we’ll all need to remain secure.
Event notices and alarms must present details and data in real time related to both the security of the cargo and the integrity of the conveyance. Scheduled alerts are sent to a user’s app, or by API to a user’s dashboard to present notice of the status, location, and timestamp providing evidence that the contents remain in a steady state. If or when an event occurs or a sensor is triggered or out of threshold, an immediate push-alarm event notice must also be sent—in real time—to the user, the API receiver, or a designated security staff person in their network, indicating an actionable event that must be investigated or thwarted.
As a decision maker, shippers should look to carriers whose system provides this level of detail from across your global supply chain. Learn how to use the data to prevent and reduce threats and loss. Watch your assets and dwell reports to better utilize equipment. Use and interpret the data to better respond to incidents and inputs from the telematic/security devices. You make the choice to mitigate loss and theft and to optimize your network and asset utilization.
