Smart containers are shipping containers used in freight and logistics that are integrated with Internet of Things (IoT) technologies, sensors, GPS tracking, and solar panels. The containers are designed to regulate the internal conditions (e.g. temperature), provide real-time GPS tracking, enhance security, and provide condition information that can alert operators to any potential issues with the cargo.

The information gathered is automatically fed into digital shipment records, which can be shared with the customer to provide up-to-date tracking and can be used to better predict arrival times at ports to enable optimized unloading of containers and distribution to the next phase of the supply chain. Smart shipping containers can be self-powered by solar panels on their exterior and have batteries to enable energy to be stored.

Traditional means of tracking the progress of shipping containers are heavily manual and unreliable. Information provided is consistently outdated, which makes it difficult to accurately predict the container’s arrival time at the port. This can lead to congestion at the port and delays in unloading the cargo for the next stage in the supply chain. The data collection process is very costly, prone to error, incomplete, and can be fraudulent. Smart Containers can relay the data automatically and in real-time during transportation and provide accurate information that enables port operators to better plan their facilities for incoming shipments, storage, and onward distribution.

Supply chain requirements have changed in recent years. Today, to satisfy higher demands, better track the movement of cargo and respond to issues, supply chain stakeholders are focussing more on the ways to improve the visibility, quality, and security of their containers.

The IoT technology inherent in Smart Containers can provide accurate real-time data about the condition, location, and environment directly to the operators. While refrigerated containers have existed for some time, they were limited in that they only allowed operators to set temperature conditions inside containers at the start of transport, to maintain the quality of perishable goods (such as food or medication). Smart Containers improve upon this technology. Operators can track, remotely control and adjust the internal conditions as required.

This enables the temperature to be adjusted in response to fluctuations in the container’s external environment, which may vary dramatically during its transportation. The data collected can be used to demonstrate the goods have remained within regulated temperature thresholds throughout their journey.  They can also detect movements nearby and enable burglary prevention systems.

Another issue related to traditional shipping container operations occurs when they arrive and are unloaded at ports. Containers can be left on docks or delivered to the wrong port; these problems are usually discovered months after the occurrence. Smart Containers can solve this problem by providing real-time information to the authorities to enable rapid issue detection.

Autonomous Shipping Ports (see also the Autonomous Shipping Ports Use Case) and Autonomous Shipping Vessels are also developing in many countries. With these additional developments, in the near future, Smart Containers will be able to communicate directly with the autonomous systems on ships and at ports. This will result in streamlined, error-free, and efficient operations from start to finish.

VALUE CREATED

Improving efficiency and reducing costs:

• Reduce the time required to gather data on the location and condition of containers by implementing an autonomous system that provides automatic updates.
• Enhance productivity and reduce the cost associated with lost or damaged cargo by ensuring optimized operations and reducing the probability that containers will be damaged or lost.
• Minimize the cost related to wastage by extending the container’s life with technologies and reducing theft and spoilage of goods by utilizing temperature control and anti-theft functionalities.

Enhancing economic, social, and environmental value:

• Enhance safety and security of the cargo and improve customer service by tracking the container’s location and condition information and providing real-time data enabling better optimization of the entire supply chain.

POLICY TOOLS AND LEVERS

Legislation and regulation: Government and industry must develop standards for Smart Containers such as testing equipment to ensure the quality of the goods, effective technologies, and safe operation of the Smart Containers.

The transition of workforce capabilities: Several capabilities in areas such as technical engineering, software engineering, and system integration are required across the production, management, and maintenance of the Smart Containers. While the production of the containers would be outsourced, the management and maintenance of the containers could be achieved in-house and would therefore require the upskilling of staff to meet this need.

Source Global International Hub