Technology once again demonstrates that it not only ‘enables’ but can also provide companies a ‘differentiator’ to get ahead of the competition – at least for a while. This is the second such innovation in recent weeks which addresses the needs of international shippers and logistics operators in meeting stringent security requirements while at the same time offering a compelling solution for supply chain auditability and the management of their assets. Furthermore, with more and more countries offering authorised economic operator (AEO) programs these same shippers and logistics operators will in the longer term enjoy a certain comfort from such technology investments through swifter customs clearance or green-lane treatment.
Two leading intra-Asia box lines are switching their entire container fleet to smart containers as they attempt to differentiate themselves from competitors. Hong Kong-based SITC Shipping Group and SIPG container shipping arm Hai Hua have both announced they will upgrade their entire container fleet to smart containers using products from Loginno. SITC, which has a fleet of 66 vessels with a total capacity approaching 2m teu, said it had decided to use smart containers to try to offer customers a different service to other carriers.
SITC Shipping Group Xue MingYuan said: “In a market with more and more homogeneous services, we have to think about why our customers would choose us over others.
“Being among the first to offer, as a standard service on all of our containers, full insight into their cargo movements and security, for a very low additional cost, we differentiate ourselves instantly, and hopefully save our customers a lot of logistic costs in their supply chain.”
This view was echoed by Hai Hua general manager JP Wang: “We have been looking for an affordable means to convert our fleet to smart containers. Shippers and Cargo owners have been long waiting for this service.”
Smart container technology has been around for a few years, but the cost of the technology and fears of damage and theft of the equipment has been enough to discourage its widespread take up. There have also been concerns from shipping lines about how to monetize the technology.
But the industry is gradually increasing its use of the technology. CMA CGM just recently announced a major initiative to introduce smart container technology to its fleet. Loginno chief technology officer Amit Aflalo said its device, which is slightly larger than a mobile phone, was inexpensive and easy to install. The device offers GPS, temperature monitoring, intrusion detection and a movement detector and can provide updates to mobile phones. Source: Lloyds Loading / Loginno