How can you manage container shipping inventory and supply chain visibility?

Container track and trace capabilities are advancing rapidly. Shipping lines now offer real-time tracking up to the point of port discharge. Numerous technologies are in development to enhance container visibility from discharge until its return to the port. IoT sensors and RFID are set to be pivotal in ensuring container transparency outside port premises.

Supply chain visibility, in its purest form, means track and trace all through the value chain on a real-time basis. These could be stretching up to 2nd or 3rd tier vendors, LSPs etc., This can, at best, be put to practice with a great amount of trust building. A standing example is the crypto currency being transacted through block chain technology. Vendors, LSPs, financial institutions are key stakeholders who can come together and log on to a common SaaS based application to provide real-time visibility to build trust and improve customer service. Imagine the power of instant sharing of information/documents and the benefits accruing thereby. The biggest takeaway is efficient inventory management that runs central to effective SCM.

Emerging technologies like AI, IoT, and blockchain are revolutionizing supply chain management by enhancing collaboration and trust. Data visibility, a crucial element in supply chains, is being optimized through real-time tracking and analytics. AI offers insights from vast data, streamlining decision-making. IoT devices, such as sensors, provide real-time product tracking, ensuring timely delivery and optimal storage conditions. Blockchain's decentralized ledger system ensures data security and authenticity, preventing fraud and verifying product sourcing. The evolution of Electronic Data Interchange (EDI) will incorporate these technologies for dynamic, real-time data exchange, leading to agile supply chains.

The shipping industry is increasingly investing in technology, with a particular focus on blockchain and IoT. Leading shipping lines now offer container tracking, and soon, direct container booking via their websites will be a reality. A significant challenge arises post-container discharge, but advancements are underway to develop IoT sensors for tracking containers outside port areas. By integrating containers with In-Vehicle Monitoring (IVM) systems, their movements can be monitored through vehicle interfaces. AI is paving the way for further automation in the shipping business. As technology continues to evolve, it will play a pivotal role in enhancing container visibility throughout the supply chain.

The best way to insulate against inconsistency in container inventory is to have long term commitments from liners on the supply side. Where we speak about higher volumes in FCLs, liners plan the supply based on committed volumes from the trade and hence can establish consistency here. On the demand side, one should have a fair idea of the seasonal movements and share this with the liners to align demand and supply. This is easier said than done as interim disruptions may change both the matrices. One should provide for enough buffers to counter such variances. Long term partnership with liners is one way to have a smooth run.

Real-time container inventory and inter-ship line container sharing present opportunities to reduce the movement of empty containers. The industry is transitioning from a competitive era to one of cooperation. A centralized database is essential to track the number of containers within ports by shipping line and those outside, ensuring a balanced understanding of demand and supply.

One pain area is the container empties not returned in time to the owner and demurrage or penalty is charged by the shipping companies or container owners. It is important to have a seamless process between the shipper and receiver along with the ocean carrier so that ocean container empties are returned on time.