This article explores the role of IoT devices in building smart containers and how they benefit the supply chain cost optimization.

IoT is now becoming a reality in various industries, and the pandemic has only increased its adoption rate. We are rapidly moving towards digitization in all spheres of enterprise, but there's a huge exception when global commerce is concerned: containers.

Since the last century, they have hardly changed. We are using the same type of containers for transporting the cargo regardless of the strategic complexities or business requirements.

Around 70% of global trade (by value) is carried out through seaways.

Still, when it comes to the availability of detailed analytical insights for the 11 billion tons of maritime freight, there's nothing substantial. In fact, nobody knows how many containers are being used currently.

But it is about to get changed. IoT-enabled smart containers can help solve some of the grievest supply chain management challenges and provide businesses with valuable insights.

Get ready for a deep dive into the world of IoT-enabled smart containers.

How IoT Makes A Container Smart
A smart container uses sensors, networks, and software to collect, store, process, and send data. Think of feature phones vs. smartphones: the sensors, CPU, and software make the difference.

These sensors help gather vital information regarding the storage conditions, and based on these inputs; the shipping carrier personnel can be alerted if situations turn unfavorable for stored items. For instance, if the food items need to be stored below -10° C and the container's temperature starts increasing suddenly, it can alert the sailors working on the ship.



The list of sensors that can be used in smart containers is as follows:

Proximity Sensors
Humidity Sensors
Temperature Sensors
Pressure Sensors
Infrared Sensors
Optical Sensors
Accelerometers
Level Sensors
Gyroscope
All of these sensors are connected with an on-site network that will need localized processing capabilities. Also, shipping companies will need to send this data to the cloud for collective analysis to generate business intelligence reports.

They may also use actuators for automating responses like activities controlling temperature/humidity.

Which Type Of Data Can Smart Containers Generate
In this section, I will cover the basic data types that will interest the shipping carriers. This data will help them make better decisions regarding shipping routes, storage and handling methods, pricing, processing claims, and improving the service quality.

Have a closer look:

Container trip history
Temperature and humidity data
Container handling history (door open/close, jerks)
Weight and size of goods stored inside the container
Container inventory
Event-based information such as loading at the port and transfer to the truck.
Geofencing data
Depending on the sensors used, various parameters can be evaluated. You can feed the ideal condition data in terms of 'parameters,' and in case there is any deviation, concerned personnel are alerted instantly.

How Smart Containers Help Streamline Supply Chains
Earlier, the information was available at the beginning and the end of a journey. If the container suffered any damage, it wasn't possible to analyze what caused the damage or where and when it happened.

Moreover, situations like theft and mishandling couldn't be tracked either. But, with smart containers, many of these problems are solved along with introducing new BI insights.



Firstly, businesses will have full visibility over their cargo. They can access the details like door open/close data, monitor the cargo quality, trip route, and time required for the transportation at a given instance.

Using geofencing, one can ensure that the container isn't moved from its position during the journey. This is especially useful in events like theft attempts.

The consignors will be able to share extensive shipment data with consignees, i.e., shippers. This will help them make better pricing decisions, take adequate safety and handling precautions, manage security, and coordinate with third-parties like insurers and port authorities.

The workload on the vessel crew will decrease; they won't need to manually verify the bill of lading details. The items get counted and even weighed using sensors.

Thus, the scope for human errors is reduced drastically.

The shippers can now access extensive data regarding what they are carrying, the frequency and timing of carrying such cargo, pricing, instructions given by consignees, and negative handling parameters. This extensive database would help them with their pricing strategy as well as build consolidated operating procedures that help improve service quality.

These insights will prove to be extremely beneficial to the new businesses willing to take part in export-import. However, shipping insurances will become more reasonable as the operating conditions and cargo details will be available to insurers on a real-time basis.

Also, port authorities can use the electronic data to speed up the verification process.

Thus, automated data capturing and transfer will generate valuable insights for every stakeholder, and they can prevent any bottlenecks in the supply chain using preemptive measures.

Benefits Of Smart Containers For Global Logistics
In this section, I will cover the benefits of using smart containers. These benefits are not limited to the carriers or cargo companies, but they will benefit each stakeholder:

The complete database of freight movement patterns will be available to global supply chain participants.
Shipping insurances will become less costly as extensive information will be available to insurance companies.
Carriers will be able to prevent cargo theft with features like geofencing and door sensors.
As the port authorities will get the reports generated by smart containers, the docking, cargo movement, and unloading process will become quicker.
Time-sensitive items like food, beverages, medical products like vaccines, and agro products will bear lesser damages.
Sea cargo companies will have a better understanding of container inventory, and they will be able to set pricing competitively.
The companies can plan trip routes as per the risk-prone zones for particular cargo types and past data.
Calculating tariffs and applicable taxes can be done almost instantly.
Container lifecycle management will also benefit from the advanced monitoring data.
Smart containers will aid the vessel crew in performing their activities and reduce the risks in adverse maritime conditions.
The same set of benefits is also available when transporting it through roadways.
Summing Up
Apart from the cost, one of the prime reasons hampering the adoption of smart containers was the unavailability of networking capabilities. Transferring data in huge volumes in maritime environments would now be possible with the advent of 5G technology and localizing processing capabilities.

We might witness "connected containers" as smart containers in the near future, but this would just be the beginning of the smart container era in modern shipping management.